Dhan Parent Raise’s FY26 Profit Declines 20% To ₹326 Cr, Net Income Crosses ₹900 Cr

Stockbroking platform Dhan parent Raise Securities’ net profit for the fiscal year FY26 declined by 20% to ₹325.8 Cr from ₹408.1 Cr in FY25, as per ICRA’s rating on the startup’s commercial paper.

The fintech startup’s profit declined despite a 14% uptick in its FY26 net operating income to ₹904.9 Cr from ₹794.8 income recorded in the previous fiscal year. Besides, its net worth at the end of the fiscal year zoomed 55% YoY to ₹916.1 Cr

ICRA assigned a long-term rating of A+ with a stable outlook and reaffirmed the company’s A1+ commercial paper rating. The rating highlighted that Raise Securities’ has grown rapidly since launching its Dhan trading platform in November 2021. 

In its rationale, ICRA said that Raise Securities continued to deliver healthy profitability despite regulatory curbs on hyperactive trading in index derivatives and softer market conditions in recent quarters.

Aided by strong client additions, the startup’s net operating income zoomed despite the loss of exchange-linked volume incentives following the implementation of the true-to-label regime. 

However, profitability moderated due to higher operating expenses, driven by increased marketing investments, team expansion and certain one-off non-recurring costs.

“Raise Securities remains the primary driver of the Group’s earnings. Driven by the company’s robust performance, the Group is estimated to have exhibited strong profitability at the consolidated level with a net profit of ₹330 Cr and RoE (return on equity) of 28% in FY26,” the report read. 

The decline in profit comes after two years of rapid growth. Raise Securities reported net operating income of ₹322.1 Cr in FY24, which more than doubled to ₹794.8 Cr in FY25 before rising further to ₹904.9 Cr in FY26. Profit after tax climbed from ₹159.2 Cr in FY24 to ₹408.1 Cr in FY25 before moderating in FY26.

Founded in 2021 by ex-Paytm Money CEO Jadhav, Jay Prakash Gupta and Alok Pandey, Raise Financial Services offers multiple financial services in the stock broking space, targeting users in tier I & II cities. 

Its portfolio of products consists of stock broking app Dhan, Option Trader app for options trading, Dhan web platform, TradingView by Dhan and an API platform for traders called DhanHQ API. 

It is the 9th largest broker in India in terms of active clients and commands a market share of 2.3% as of March 31, 2026, as per ICRA.

The startup has raised about $142 Mn from investors like Hornbill Capital, Japan’s MUFG, 3one4 Capital, BEENEXT and Mirae Asset Venture. It entered the unicorn club in late 2025 after raising $120 Mn in its Series B funding round at over $1.2 Bn valuation.

As of now, the fintech startup is tapping external debt facilities, including a proposed ₹100 Cr long-term/short-term bank line and a ₹50 Cr commercial paper programme.

Charting Dhan’s Growth Trajectory

Dhan’s rise has been driven by aggressive client acquisition and increasing trading activity.

The startup has expanded its presence across Tier-I, Tier-II and Tier-III cities through a combination of its digital platform and franchise-led distribution network..

Its derivatives trading volumes increased from ₹58,000 Cr in FY23 to ₹11.87 Lakh Cr in FY26. Commodity trading volumes rose 67% YoY to ₹3.43 Lakh Cr during the same period.

Meanwhile, the company’s margin trading facility (MTF) book more than doubled to ₹505 Cr at the end of FY26. However, ICRA noted that Dhan’s share of the overall industry MTF market remains below 1%.

The growth is aided by Raise Financial Services’ heavy investment to expand its service stack beyond stock broking and position itself as a broader investing and wealth-tech platform.

The startup is working on building an ecosystem around trading and investing via acquisitions or in-house product development.

Most recently, it acquired algorithmic investing platform Stratzy in a cash-and-stock deal. Stratzy brings more than 100 exchange-approved algorithmic strategies across equities, derivatives, indices and commodities, giving Raise a ready-made systematic investing layer.

It has launched AI-powered products such as Fuzz AI, a financial research assistant, and Artham, its in-house small language model designed to help users analyse market information. It also rolled out DEXT T3, a desktop trading terminal for active traders.

Dependence On F&O Remains A Key Risk

Despite those diversification efforts, Dhan remains heavily reliant on derivatives trading.

ICRA highlighted that around 79% of Raise Securities’ net operating income came from broking activities in FY26. In this, retail futures and options (F&O) trading alone contributed about 70% of total net operating income.

This concentration leaves the company vulnerable to regulatory changes and fluctuations in trading activity.

The rating agency noted that recent measures introduced by market regulator SEBI have already weighed on derivatives trading volumes across the industry. It added that any further increase in securities transaction tax (STT) or additional regulatory restrictions could adversely impact trading activity and brokerage revenues.

The risk is particularly relevant as India’s retail trading boom has begun to moderate following multiple regulatory interventions aimed at curbing speculative activity in the derivatives segment.

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