Raise Securities, parent company of the Dhan trading platform, posted a 14% rise in net operating income to Rs 905 crore for FY26, while profit after tax declined 20% to Rs 326 crore due to increased operating costs and tighter regulations on derivatives trading.
- 14% revenue increase to Rs 905 crore in FY26 with 20% profit drop
- Derivatives trading remains key, contributing 70% of revenue
- Strong balance sheet with 55% net worth growth and robust liquidity
What happened
Raise Securities, the parent company of the Dhan trading platform, reported financial results for FY26 showing net operating income of Rs 905 crore, a 14% increase from Rs 795 crore in FY25. However, profit after tax dropped 20% to Rs 326 crore from Rs 408 crore the previous year. This decline was driven primarily by a rise in operating expenses, including elevated spending on marketing, team growth, and non-recurring one-time charges.
The brokerage expanded its client base under the Dhan brand, launched in 2021, recording strong client additions across Tier 1, 2, and 3 cities. As of March 31, Raise Securities held 2.3% of active clients on the National Stock Exchange, ranking it as India's ninth-largest broker by active clients. Its market footprint includes competition with other tech-driven discount brokers such as Zerodha, Groww, and Upstox.
Why it matters
Raise Securities continues to heavily rely on derivatives trading, especially in retail futures and options, which accounted for approximately 70% of its net operating income in FY26. The derivatives turnover saw a substantial rise from Rs 0.58 lakh crore in FY23 to Rs 11.87 lakh crore in FY26. This concentration exposes the company to regulatory risk, especially with recent hikes in securities transaction taxes, potentially dampening trading volumes and thus impacting brokerage revenue streams.
Despite the margin pressure, Raise Securities maintained a robust net profit margin of 36%, staying profitable in a highly competitive discount brokerage market. Additionally, the company's margin trading facility book more than doubled, indicating growing customer engagement and revenue diversification. These dynamics underscore the importance of balancing growth investments with evolving regulatory constraints and market competition.
What to watch next
Investors and market participants should monitor the impact of regulatory changes on derivatives trading volumes and brokerage profitability, especially following increased securities transaction taxes. The company's reliance on derivatives income makes it vulnerable to shifts in market activity and regulatory environments, which could influence future financial results.
Raise Securities' ongoing expansion in margin trading and commodity derivatives, along with its strengthened balance sheet—evidenced by a 55% increase in net worth to Rs 916 crore and strong liquidity buffers—positions it to withstand potential market volatility. Observers should also watch for further client growth in non-metro markets and strategic moves within the broader Raise Group’s financial services ecosystem.