The Indian stock brokerage industry is currently marked by high momentum, with leading platforms recording a sustained growth in profits and high growth rates. The stockbroking and investment platform, Dhan, has reported an impressive financial result during the fiscal year that ends in March 2025, becoming one of the leading financial services companies in the industry.
As per the standalone financial reports that Dhan filed with the Registrar of Companies, the revenue of the company experienced a dramatic increase, increasing by more than 2.3 times per annum. Operating revenue grew to ₹877 crore in FY25 as compared to the previous fiscal year, when the firm registered ₹371 crore.
Dhan’s integration and primary driver
Dhan has continued to rely on the brokerage services as the main driver of its financial success. The proportions of the total operating revenue were around 88% in income received on brokerage fees and commissions in equity, derivatives and commodities trading. The growth of this particular segment was 2.35 times, and it was ₹769 crore last fiscal year.
Other operating activities recorded ₹108 crore in the company. At the inclusion of the non-operating income, including interests on fixed deposits, inter-corporate deposits, and current investments, Dhan had a total income of FY25 of ₹887 crores.
Pravin Jadhav is the founder of Dhan, who began the company in 2021. By providing an extensive selection of trading choices in equity, ETFs and futures and options, Dhan has created a desired place among active traders and young investors. Its integration with such tools as Smallcase and TradingView has also increased its popularity.
Dhan had 9.8 lakh active clients as of December 2025, implying a market share of 2.2%. This is a significant growth compared to the 4.69 lakh active users in FY24. The company has not yet caught up with the industry leaders, such as Groww and Zerodha, in absolute user base; however, the high growth rate of the company is also a strong point in the financial year.
Detailed expenditure and profitability
As the business grew, the total expenses of Dhan also rose from ₹341 crore in FY25 to ₹175 crore in FY24. Commission to selling agents constituted the largest cost element of the platform, which almost doubled to ₹82.6 crore, constituting approximately 24% of the overall expenditure.
Another significant area of investment was advertising and promotional activities, where the amount spent was ₹1.7 crore, which is 2.7 times more than what was spent last year. The costs of employee benefits also increased by 66% to ₹73 crore, whereas the costs of software and technology increased by more than 85% to ₹39.7 crore. The other overheads that added to the overall costs were royalty fees, demat charges and legal and professional fees.
This massive growth in revenue enabled Dhan to speed up its profitability with its Profit After Tax (PAT) growing 2.6 times to reach ₹408 crore in FY25, as compared to ₹159 crore in FY24. The efficiency of the company is indicated by its better Return on Capital Employed (ROCE) of 91.9% and EBITDA margins of 63.25%.
With unit economics, the firm expended ₹0.39 to get one rupee of operating revenue. This financial strength was paired with Dhan becoming a unicorn in October, after a series B funding round of $120 million led by Hornbill Capital that valued Dhan at $1.2 billion. This round also offered high-paying exits to early angel investors and supporters, with some of them realising returns close to 45 times their initial contribution in a period of less than four years.
Conclusion
The India stock market is in a buoyant condition during that period, as seen in the performance of Dhan in FY25. Though the larger market has encountered headwinds in the last fiscal year, as a result of the regulatory changes and higher tax rates on futures and options, Dhan has laid out a strong financial basis.
The company has a strong presence among active traders, a cash and bank balance of ₹1,498 crore, and is poised to sail through the market changes in the future. With the rivalry between stockbroking platforms gaining momentum, Dhan has been able to sustain high margins whilst getting a significant number of users, which draws attention to the fact that the company is becoming a powerful force in the financial services industry.
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