Broking industry set for record ₹28,000 cr revenue this fiscal: Icra

However, after a record run, the industry is set for a muted growth next fiscal despite the outlook being stable, Icra said.

According to the agency, this growth translates into a net addition of 28.33 lakh accounts per month in the current fiscal, more than twice the monthly addition of 11.91 lakh in FY21 and 4.1 lakh a month in FY20.

Apart from the increased trading volume, the average investment by investors also increased during the year, leading to higher revenues, as broking fee is based on trading volume. For instance, among the retail-focused brokerages, the average revenue per active client rose 25 per cent to ₹12,788 in FY21 from ₹10,238 in FY20.

The report is based on 18 brokerages which on average saw revenue growth of around 38%.

The influx of retail investors to the market is also visible from the 179% increase in trading volumes during the first nine months of FY22.

Average daily turnover jumped 126 per cent to ₹63.07 lakh crore during the first nine months of FY22 from ₹27.92 lakh crore in FY21 and ₹14.39 lakh crore in FY20, says the report, adding however the market will be highly volatile next fiscal amid various domestic and international headwinds.

An analysis of the 10 top retail-oriented broking companies shows that aggregate capital market loan book comprising margin funding, loan against securities, employee stock ownership plan funding, jumped by 141% to ₹11,076 crore as of March 2021 from ₹4,591 crore in March 2020, and further to ₹18,643 crore as of September 2021, clipping at 68% on-year.

Among the sample of retail-focused brokerages, average revenue per active client rose 25% to ₹12,788 in FY21 from ₹10,238 in FY20.

(With inputs from PTI)