Zerodha Asset Management, the operating company behind Zerodha Fund House, increased operating revenue by 78.7% to ₹16.8 crore in FY26, compared with ₹9.4 crore in the preceding financial year. Its net loss narrowed 37.8% to ₹5.1 crore from ₹8.2 crore, reflecting greater operating scale during its second full year in India’s mutual-fund market.
Other income of approximately ₹36.6 lakh took total income to ₹17.1 crore. Total expenditure nevertheless increased 29.4% to ₹21.1 crore from ₹16.3 crore, while the company incurred an additional tax expense of ₹1 crore.
Employee costs remained the largest disclosed expense category, rising 23.6% to ₹13.1 crore from ₹10.6 crore. Subscription and cloud charges increased 47.1% to ₹2.5 crore, demonstrating the continuing technology and infrastructure costs associated with running a digitally distributed asset-management platform. Legal and professional expenses more than doubled to ₹2.1 crore, while fund-related expenditure increased to ₹1.2 crore from ₹31.4 lakh.
The company’s quarterly average assets under management reached ₹14,448 crore at the end of March 2026, representing growth of nearly 196% from ₹4,887 crore a year earlier. Exchange-traded funds accounted for ₹12,107.6 crore, or nearly 84% of the total, while non-ETF products contributed approximately ₹2,340.5 crore.
Zerodha Fund House concentrates on passive investment products, including index funds and ETFs, and launched nine schemes during FY26. Its revenue is principally generated through investment-management and advisory fees charged for operating Zerodha Mutual Fund schemes. The rapid expansion in assets has therefore translated into higher fee income, although the expense base and relatively low fee structure associated with passive products kept the operating company loss-making.
The fund house operates through the three-part structure prescribed for Indian mutual funds. Zerodha Broking is the sponsor, CASE Platforms is the co-sponsor, Zerodha Trustee oversees compliance and investor interests, and Zerodha Asset Management performs the fund-management function. CASE Platforms, previously associated primarily with the smallcase brand, received regulatory approval in August 2026 to become co-sponsor. Smallcase continues as the company’s consumer-facing model-portfolio brand.
Zerodha Asset Management was incorporated in 2021, received final regulatory approval in July 2023 and subsequently began operations. Its FY26 figures capture the early scaling phase of a low-cost, technology-led fund manager built around passive products rather than conventional actively managed equity and debt portfolios.
The asset mix also highlights the importance of ETFs in the company’s expansion. While the fund house’s assets almost tripled in one year, the substantially slower increase in revenue reflects the comparatively thin management fees typical of passive investment products. The next phase of its financial development will depend on whether asset growth continues to outpace the technology, compliance, staffing and distribution costs required to operate the platform.
