Zerodha Fund House Narrows Loss as Revenue Rises 79%

Zerodha Fund House continued to scale its young asset management business in FY26, with operating revenue rising 78.7% year-on-year to ₹16.8 crore from ₹9.4 crore in FY25. Including other income, total income stood at ₹17.1 crore, while the company narrowed its annual loss by 37.8% to ₹5.1 crore from ₹8.2 crore a year earlier.

The bigger jump came in assets under management. Zerodha Fund House’s quarterly average AUM reached ₹14,448 crore as of March 2026, nearly three times the ₹4,887 crore recorded a year earlier. Exchange-traded funds accounted for the majority of this base at ₹12,107.6 crore, while non-ETF products contributed around ₹2,340.5 crore.

Built as a partnership between Zerodha and CASE Platforms, formerly smallcase, Zerodha Fund House received SEBI approval to operate as an asset management company in July 2023. Its strategy has largely centred on passive investing through index funds and ETFs, with the fund house launching nine schemes during FY26. Revenue primarily comes from advisory and management fees earned by operating these mutual fund products.

Growth, however, continued to bring higher costs. Total expenses increased 29.4% to ₹21.1 crore during FY26. Employee expenses rose to ₹13.1 crore, while subscription and cloud costs reached ₹2.5 crore. Legal and professional expenses also more than doubled to ₹2.1 crore as the company continued investing in its operating infrastructure.

For Zerodha Fund House, FY26 shows a business still in its investment phase but beginning to gain meaningful scale. Its rapidly expanding AUM and faster revenue growth helped reduce losses despite rising expenses. As passive investing gains ground among Indian retail investors, the challenge now will be converting that growing asset base into a sustainably profitable asset management business.