Zerodha sees 40% drop in brokerage revenue in Q1 FY26; signals business pivot

Stockbroking platform Zerodha has reported a sharp decline in brokerage revenue for the first quarter of FY26, as regulatory changes by the Securities and Exchange Board of India (Sebi) and a slowdown in market activity hit its core business.

The discount brokerage posted a 40% drop in brokerage revenue in Q1 FY26 compared to the same quarter last year, according to a blog post by founder Nithin Kamath, who added that the “time has finally come for the business to pivot.”

The decline comes amid Sebi- and exchange-led interventions, including a rise…