The Indian wealthtech sector has a new heavyweight contender as Dhan, the Mumbai-based stockbroking platform, reported a spectacular financial performance for the fiscal year ending March 31, 2025. According to the company’s latest standalone financial statements, Dhan’s Profit After Tax (PAT) soared to ₹408 crore, marking a staggering 156% increase from the ₹159 crore recorded in FY24.
This bottom-line growth was fueled by a massive surge in operating revenue, which climbed to ₹877 crore—a 2.3X jump compared to the ₹371 crore earned in the previous fiscal year.
Driving Force: Derivatives and Active Trading
Founded in 2021 by Pravin Jadhav, the former CEO of Paytm Money, Dhan has carved a niche by focusing on high-frequency traders and tech-savvy investors.
- Revenue Mix: Nearly 88% of total operating revenue (approximately ₹769 crore) was derived from brokerage fees and commissions, primarily from equity, derivatives, and commodities trading.
- Operational Efficiency: Despite doubling its total expenses to ₹341 crore, the firm maintained industry-leading margins. Dhan’s EBITDA margin stood at 63.25%, with an impressive ROCE of 91.9%.
- Spending Strategy: To fuel its rapid expansion, Dhan significantly increased its marketing and tech spend. Advertising costs rose 2.7X to ₹73.6 crore, while employee benefit expenses grew 66% to ₹73 crore.
Joining the Unicorn Elite
Dhan’s financial prowess has not gone unnoticed by global investors. In October 2025, the startup officially entered the Unicorn Club after raising $120 million in a Series B round led by Hornbill Capital and Japan’s MUFG. The funding valued the company at $1.2 billion, providing the “dry powder” needed to compete with incumbents like Zerodha, Groww, and Angel One.
As of December 2025, Dhan reported an active client base of 9.8 lakh users, commanding a 2.2% market share. While it remains smaller in volume than industry leader Groww (1.21 crore active users), its high unit economics spending just ₹0.39 to earn a rupee—positions it as one of the most efficient players in the digital brokerage space.
Looking Ahead: Navigating “Budget Blues”
While FY25 was a record-breaking year, the current fiscal year (FY26) presents new challenges. The recent Union Budget 2026 announcement regarding increased Securities Transaction Tax (STT) on F&O trades has created a cooling effect in the derivatives segment. However, with a cash balance of ₹1,498 crore as of March 2025, Dhan appears well-capitalized to weather market volatility and continue its push into AI-driven investment tools.
Key Highlights:
- Profit Surge: Dhan reported a ₹408 crore net profit in FY25, up 156% year-on-year, driven by the retail trading boom.
- Revenue Milestone: Operating revenue hit ₹877 crore, a 2.3X increase, with the majority coming from brokerage commissions.
- Unicorn Status: Following its strong performance, Dhan raised $120 million in late 2025 at a $1.2 billion valuation.
- Market Position: With 9.8 lakh active users, Dhan is now one of India’s most profitable and efficient discount brokers, rivaling Zerodha and Groww in unit economics.