Zerodha Asset Management Pvt Ltd, managing Zerodha Fund House, posted a 79% increase in operating revenue to ₹16.8 crore for FY26 while cutting losses by nearly 38% to ₹5.1 crore, reflecting rising assets under management and strategic expansion of its passive fund schemes.
- Operating revenue grew 79% YoY to ₹16.8 crore in FY26.
- Losses narrowed 38% to ₹5.1 crore amid rising expenses.
- Quarterly average AUM nearly tripled to ₹14,448 crore.
What happened
Zerodha Asset Management Pvt Ltd, which operates Zerodha Fund House, reported a substantial increase in operating revenue for the fiscal year 2025-26, reaching ₹16.8 crore, up 78.7% from ₹9.4 crore the previous year. The company also saw total income of ₹17.1 crore thanks to additional sources such as other income. While the firm incurred higher costs, including a ₹1 crore tax expense, it successfully narrowed its loss by 37.8% to ₹5.1 crore compared to FY25.
Why it matters
Zerodha Fund House’s performance highlights the growing appetite for passive investment strategies in India, supported by the partnership between Zerodha, a leading discount broker, and CASE Platforms, a fintech startup specializing in investment tech. This collaboration leverages technology and investor trust to penetrate a competitive mutual fund market with low-cost passive funds.
The narrowing losses and revenue growth reflect operational scaling and improved fund management, positioning Zerodha Fund House as an emerging player in India’s asset management space. Despite rising expenses in employee benefits, cloud subscriptions, and legal fees, the company’s ability to grow assets and revenue signals strong investor interest and business sustainability going forward.
What to watch next
Investors and market watchers will be keen to monitor Zerodha Fund House’s ability to turn profitable while managing increasing costs, including rising employee expenses and legal fees. Continued growth in assets under management, especially in ETFs, will be critical for sustaining revenue momentum and improving margin profiles.
Additionally, the strategic shifts involving CASE Platforms becoming the corporate parent and co-sponsor to Zerodha Mutual Fund could influence the company’s expansion plan and product development. Tracking regulatory developments and product launches will be important to assess how Zerodha Fund House competes with established AMCs in India’s evolving mutual fund industry.