Brokerage profits rose at several major Indian firms in the July–September 2026 quarter despite slower equity-market activity, as margin funding and other businesses supported earnings. Groww, Angel One and HDFC Securities reported strong year-on-year profit growth, although declines at 5paisa Capital and Geojit Financial Services showed that the improvement was not industry-wide.
Key Takeaways
- Cash-market turnover fell from the preceding quarter even as several brokers increased annual profits.
- Margin funding expanded while broking and derivatives contributed smaller shares of revenue at major firms.
- 5paisa Capital and Geojit reported lower profits despite higher operating revenue.
Table of Contents
- Brokerage profits diverge from trading activity
- Margin funding provides another earnings stream
- Groww and Angel One shift their revenue mix
- Quarterly results show an uneven industry picture
- Conclusion
Brokerage profits diverge from trading activity
Combined average daily equity cash-market turnover on the NSE and BSE fell 11.7% from the preceding quarter to ₹1.29 lakh crore in July–September. Higher global bond yields, foreign investor outflows, rising oil prices and regulatory changes formed the backdrop to weaker activity.
The introduction of the closing auction session, or CAS, in August also coincided with a decline in derivatives turnover. The comparison periods matter: trading activity weakened sequentially, while the reported profit growth rates compare earnings with the same quarter a year earlier.
| Item | Details |
|---|---|
| Groww parent | Consolidated PAT ₹725.65 crore, up 54%; operating revenue ₹1,501.53 crore, up 47.4%. |
| Angel One | Consolidated PAT ₹335 crore, up 58.2%; gross revenue ₹1,427 crore, up 18.9%. |
| HDFC Securities | PAT ₹264.66 crore, up 26.3%; operating revenue ₹964.61 crore, up 37.6%. |
| Anand Rathi Share and Stock Brokers | PAT ₹41.94 crore, up 50.3%; operating revenue ₹273.21 crore, up 20.3%. |
| 5paisa Capital | PAT ₹7.06 crore, down 25.5%; operating revenue ₹86.46 crore, up 11.8%. |
| Geojit Financial Services | Consolidated PAT ₹16.54 crore, down about 26%; operating revenue ₹165.82 crore, up 2.6%. |
Margin funding provides another earnings stream
Groww reported growth in its margin trading facility and wealth businesses. Groww’s margin trading facility explanation describes how customers pay part of a stock purchase upfront while the broker lends the remainder and charges interest on the funded amount. That explains the product’s income stream, rather than establishing its quarterly growth.
Angel One’s average client funding book expanded 40.5% year on year to ₹7,450 crore. Anand Rathi Share and Stock Brokers reported a 36% increase in interest income from its margin trading facility to ₹49.6 crore.
These businesses helped support earnings beyond transaction-based broking. For customers, however, funded purchases involve borrowing costs and leverage, which can amplify losses as well as gains.
Groww and Angel One shift their revenue mix
At Groww parent Billionbrains Garage Ventures, equity derivatives contributed 45% of revenue, down from 57% a year earlier. Groww attributed the smaller share to market adjustments to CAS and said it expected a recovery after SEBI’s reviewed measures take effect. That remains a company expectation, not a completed recovery.
Angel One’s gross broking income accounted for about 55% of revenue, compared with nearly 60% a year earlier. Orders processed fell to 366 million from 406 million in the preceding quarter.
Angel One attributed its faster profit growth to operating leverage and an expanding earnings base. Its results illustrate how profitability can improve even when order volumes decline.
Quarterly results show an uneven industry picture
The September-quarter figures below show substantial differences among firms. Revenue figures are revenue from operations except for Angel One, which reported gross revenue; growth rates are year on year.
HDFC Securities and Anand Rathi joined Groww and Angel One in reporting higher profit. By contrast, rising revenue at 5paisa and Geojit did not translate into higher bottom-line earnings. Kotak Securities reported profit of ₹348 crore, without a comparative growth rate in the available figures.
Conclusion
The September results show that stronger funding and other businesses can cushion weaker trading activity, but not uniformly across brokers. Groww has identified SEBI’s reviewed measures as the next potential support for derivatives activity; its expected recovery has yet to be demonstrated.
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Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
