Raise Securities, parent of trading platform Dhan, reported a 14% year-on-year increase in net operating income to Rs 905 crore in FY26. However, the brokerage's profit after tax declined 20% to Rs 326 crore amid higher operating expenses and a tighter regulatory environment for derivatives trading, according to a ratings report by ICRA.

The company had reported net operating income of Rs 795 crore and a profit after tax of Rs 408 crore in FY25. The rating agency attributed the increase in operating expenses in FY26 to elevated marketing spend, team expansion, and one-off non-recurring expenses.

Despite the moderation in earnings, Raise Securities remained one of the profitable companies among India's new-age discount brokerages, with a net profit margin of 36% on its net operating income during FY26.


ICRA said that under the ‘Dhan’ brand, launched in 2021, the company has recorded strong client additions in Tier 1, 2, and 3 markets.

As of March 31, Raise Securities accounted for 2.3% of active clients on the National Stock Exchange (NSE), making it the country's ninth-largest broker by that measure.

The company operates in a market crowded with tech-first discount brokers, including Zerodha, Groww, Upstox, 5paisa, and newer entrants Trackk and Sahi.

Derivatives concentration

Like most discount brokers, Raise Securities remains heavily dependent on derivatives trading, particularly retail futures and options (F&O), which accounted for around 70% of its net operating income in FY26. The company's derivatives turnover increased sharply, from Rs 0.58 lakh crore in FY23 to Rs 11.87 lakh crore in FY26, the report noted.

“While the company’s performance has been resilient so far, supported by strong client additions, the revenue stream remains sensitive to regulatory risks,” ICRA’s analysts noted.

“Given the recent hike in securities transaction tax (STT), the industry could witness a moderation in derivatives trading volumes, which could exert pressure on the performance of securities brokers with high reliance on derivatives-driven broking income, including Raise Securities,” they added.

The company also saw strong growth in its margin trading facility (MTF) business. The MTF book more than doubled to Rs 505 crore as of March 31, marking a 133% year-on-year increase.

Commodities trading volumes rose about 67% year on year to Rs 3.43 lakh crore during the year, aided by higher activity in bullion derivatives.

Stronger balance sheet

The brokerage's balance sheet also continued to strengthen. Its net worth surged 55% year on year to Rs 916 crore at the end of FY26, while total assets expanded 72% to Rs 3,375 crore. ICRA assigned an [ICRA]A+ rating with a stable outlook to its bank line facilities and reaffirmed its [ICRA]A1+ rating for commercial paper.

The company's liquidity profile remained strong with Rs 86 crore of unencumbered cash, Rs 35 crore of liquid investments, and access to additional funding lines of around Rs 97 crore against debt repayment obligations of Rs 210 crore, including working capital demand loans.

Raise became a unicorn last October following a $120 million funding round led by Hornbill Capital, with participation from MUFG Bank, Beenext, and existing investors.

The broader Raise Group, which has expanded into insurance broking, wealth management, and other financial services, is estimated to have reported a consolidated net profit of around Rs 330 crore in FY26.