Archive · 4 Aug 2025
Indian Brokers Shift Focus Amid F&O Slump
Trading in the stock market's complex parts (F&O) has slowed down because of new rules.
This is hurting the profits of big brokers.
Now, they are trying different ways to make money, like helping people manage their wealth and lending them money.
Some brokers are making less money from the main business, and their profits are down.
At the same time, their costs are going up, so it's harder for them to make money.
Regulatory changes have significantly reduced trading volumes in the Futures and Options (F&O) segment.
Brokerages are diversifying into wealth management, lending, and distribution to offset the impact of reduced F&O income.
Many brokerages experienced profit declines between 37% and 60% in the quarter ending June.
Some brokers are seeing declines in broking revenue as a percentage of total revenue.
Rising operational costs and increased competition are putting pressure on brokerage margins.
- Who
- Major Indian brokerages.
- What
- Indian brokerages are diversifying due to decreased profits in the F&O market.
- When
- Since the implementation of new regulations starting October 2024.
- Where
- India.
- Why
- To offset the negative impact of regulatory changes on their F&O income and profits.
Traditional Broking Business
Wealth Management & Diversification
Revenue Models
Traditional Broking Business
Broking is volume-driven and subject to cyclical market fluctuations.
Wealth Management & Diversification
Wealth management offers more stable, recurring income through fees.
- Industry Revenue (FY25)
- ₹43,900 crore
- Angel One Broking Revenue Drop (Q1FY26)
- From 65% to 60%
- Index options turnover (National Stock Exchange - FY26 so far)
- ₹9.44 trillion
- Equity Mutual Fund Net Inflows (June)
- ₹23,567 crore
- PMS AUM growth (June quarter)
- 10.3%
