Mumbai-based stockbroking platform Dhan reported a strong financial performance for the year ended March 2025, posting operating revenue of Rs 877 crore and profit after tax of Rs 408 crore, signaling robust growth as retail participation and digital broking adoption rise across India.
Revenue more than doubled on higher trading volumes
Dhan’s operating revenue rose to Rs 877 crore in FY25, more than 2.3 times the Rs 371 crore recorded in FY24. Brokerage and trading-related fees accounted for nearly 88% of operating income, reflecting heightened activity in equities and derivatives among active retail traders.
The company also reported over Rs 100 crore from other operating income, with smaller contributions from non-operating sources such as interest income and returns on financial investments. The revenue surge underscores growing acceptance of digital-first brokerage platforms and increased trading frequency on low-latency, mobile-first interfaces.
Profitability improves on operating leverage and cost control
Dhan’s profit after tax climbed to Rs 408 crore in FY25 from Rs 159 crore a year earlier, an increase of nearly 2.6 times. The improvement reflects strong operating leverage as the business scaled, while keeping expense ratios modest.
On average, Dhan spent about 39 paise to generate one rupee of operating revenue, positioning it among the more cost-efficient retail brokerages in India. Disciplined spending and improved margins were key contributors to the rise in net profits.
Investment-led expense growth to support expansion
Certain cost lines rose as the company expanded. Commission payouts to distribution partners nearly doubled, and advertising and brand marketing expenses increased materially to support customer acquisition and strengthen market presence.
Employee benefit costs and technology expenditure also climbed as Dhan invested in platform upgrades, customer support systems and talent. Management balanced these outlays with revenue growth, preserving overall profitability.
Active client base expands sharply
Dhan’s active client count reached about 9.8 lakh by March 2025, up from roughly 4.7 lakh a year earlier. While the platform’s market share remains smaller than incumbent brokerages, the rapid rise in active users indicates growing trust in its technology-led offering among younger and digitally native investors.
This trend aligns with broader shifts in India’s capital markets, where online trading adoption and participation from retail investors have been steadily increasing.
Unicorn funding and outlook
The FY25 results follow Dhan’s recent attainment of unicorn status after raising substantial capital from domestic and global investors. The fresh funding, combined with healthier financials, provides room to invest further in product innovation, risk management and regulatory compliance.
Going forward, Dhan stands to benefit from India’s expanding investor base and deeper market penetration. Key challenges will include intensifying competition in retail broking, evolving regulatory requirements and potential margin pressure across the sector.
