Lending Arm Of Zerodha Accelerates Growth Through Loan-Against-Securities Business
Zerodha Capital, the non-banking finance company (NBFC) arm of the Zerodha Group, reported strong growth in FY26, with net profit rising 20.5% year-on-year to ₹14.7 crore, supported by the rapid expansion of its loan-against-securities (LAS) portfolio.
According to a recent disclosure by rating agency ICRA, the Bengaluru-based lender recorded total income of ₹53.5 crore during FY26, marking a 44.2% increase from ₹37.1 crore in the previous financial year.
The performance reflects growing demand for secured lending products among retail investors and highlights Zerodha Capital’s ability to leverage the massive customer base of India’s largest stockbroker.
Loan Book Expands Sharply
A key driver behind the company’s growth was the significant expansion of its lending portfolio.
Zerodha Capital’s loan book increased to ₹580 crore as of March 31, 2026, as the company continued scaling its loan against shares and mutual fund offerings.
The NBFC provides loans ranging from ₹25,000 to ₹10 crore, allowing investors to unlock liquidity from their existing investments without liquidating their portfolios.
The model has gained traction among retail and high-net-worth investors seeking short-term capital while maintaining exposure to financial markets.
The company primarily serves customers within the broader Zerodha ecosystem, benefiting from strong customer acquisition synergies and lower distribution costs.
Profitability Remains Strong Despite Expansion
While the company aggressively expanded its lending operations, profitability remained healthy.
Net profit increased to ₹14.7 crore in FY26 compared to ₹12.2 crore in FY25, reflecting continued operating efficiency and controlled credit costs.
The growth in earnings came alongside a sharp increase in lending activity, demonstrating the scalability of Zerodha Capital’s business model.
As the company grows, management appears focused on balancing expansion with prudent risk management, a factor highlighted by its asset quality performance.
Asset Quality Stays Robust
One of the most notable aspects of Zerodha Capital’s FY26 performance was its pristine asset quality.
According to ICRA, the company reported zero gross non-performing assets (GNPAs) as of March 2026.
Maintaining a nil-GNPA portfolio while significantly expanding lending operations underscores the relatively low-risk nature of its secured lending business and disciplined underwriting approach.
The company also reported a net worth of approximately ₹188 crore during the fiscal year.
However, its gearing ratio increased to 2.4 times from 1.5 times a year earlier as it borrowed additional funds to support the growing loan portfolio.
ICRA Enhances Credit Facilities
Reflecting confidence in the company’s financial position and growth prospects, ICRA reaffirmed Zerodha Capital’s long-term rating at [ICRA]AA- (Stable) and its short-term rating at [ICRA]A1+.
The rating agency also enhanced the rated amount of the company’s fund-based bank facilities from ₹600 crore to ₹900 crore.
At the same time, ICRA withdrew its rating on Zerodha Capital’s ₹100 crore non-convertible debenture (NCD) programme after confirming that no outstanding amount remained under the facility.
The ratings continue to reflect the company’s strong parentage, healthy capitalization, and strategic role within the Zerodha Group.
Backed By India’s Largest Broker
ICRA highlighted Zerodha Capital’s strategic importance within the broader Zerodha ecosystem.
The company benefits from shared promoters, operational integration, and direct access to one of India’s largest retail investor bases.
As of May 2026, Zerodha had 68.5 lakh active NSE clients, accounting for approximately 15.02% of the exchange’s active investor base.
This large and engaged customer network provides a significant competitive advantage for Zerodha Capital as it expands its lending products.
Future Outlook
With a growing loan book, strong asset quality, and access to millions of brokerage customers, Zerodha Capital is well-positioned to continue scaling its secured lending business.
As more investors seek liquidity solutions without selling their investments, the loan-against-securities segment is expected to witness sustained growth.
Backed by the trusted Zerodha brand and a robust distribution ecosystem, Zerodha Capital is emerging as an increasingly important player in India’s retail lending landscape.
