Major Indian brokerage firms reported double-digit profit growth for the June quarter, led by gains in margin funding and diversified services. These results show that companies relying on lending and wealth management are better equipped to handle recent regulatory changes in the derivatives market.
Indian brokerage firms have shown resilience in the June 2026 quarter, reporting strong financial growth despite ongoing regulatory pressures that reshaped the derivatives market late last year. Most major players managed to grow their profits by focusing on diverse revenue streams such as margin funding, wealth management, and distribution services rather than relying solely on transaction fees.
Diversification Drives Performance
The June quarter results highlight a clear shift in how brokerage firms operate. Companies that successfully moved beyond simple trade execution to offer broader financial products reported higher growth rates. Firms that expanded their margin trading facilities—where brokers lend money to clients to trade—saw a direct boost in earnings as interest income became a significant contributor to their top line.
Groww, through its parent company Billionbrains Garage Ventures, reported a consolidated net profit of ₹735 crore, marking a 94.4% increase compared to the same period last year. Its operational revenue grew 66% to ₹1,501 crore, aided by a surge in its margin trading book and commodity trading activities. Similarly, Angel One saw its net profit more than double to ₹231.4 crore, supported by a record average client funding book of ₹6,140 crore, which grew 46% year-on-year.
Established Players Focus on Digital Efficiency
Traditional full-service brokers also reported steady performance by leaning into digital transformation. HDFC Securities posted a 28% increase in net profit to ₹300 crore, with revenue rising 30% to ₹950 crore. The firm highlighted that 96% of its 8 million customers now use digital platforms, helping to control costs. Kotak Securities recorded a 14.6% rise in net profit to ₹533 crore, while ICICI Securities saw a more moderate 7% profit growth to ₹417.96 crore.
Other players like 5paisa and Anand Rathi also benefited from their focus on margin funding and distribution. Anand Rathi reported a 71% rise in profit before exceptional items, with revenue growing 22% to ₹246.1 crore, reinforcing that fee-based and interest-based income are becoming essential for maintaining margins in a tighter regulatory environment.
Risks and Monitoring Areas
While the sector has adapted well, investors should continue to track the impact of regulatory guidelines on trading volumes. The shift toward higher margin funding books increases the leverage on brokerage balance sheets, making them more sensitive to market volatility and client repayment capacity. The sustainability of this profit growth will depend on whether companies can maintain their client acquisition momentum while managing the risks associated with lending to retail traders. Future updates on net interest margins and the growth of wealth management assets will be important indicators for assessing long-term stability.