India’s retail trading momentum hit a speed bump in FY26, with active clients on the National Stock Exchange falling 7 per cent year-on-year to 4.57 crore from 4.92 crore — a record decline of nearly 35 lakh accounts and the first annual contraction in three years.
The drop was heavily concentrated among the top discount brokers. Zerodha alone accounted for 29 per cent of the decline, shedding 9.95 lakh active investors. Angel One lost 8.15 lakh accounts (23 per cent) and Upstox shed 7.6 lakh (22 per cent), meaning the three platforms together drove over 70 per cent of the industry-wide contraction.
Groww was a notable exception. The market leader grew its share from 26.26 per cent to 28.31 per cent, and dominated Q4 additions — capturing 116 per cent of net industry additions in January, 75 per cent in February and 80 per cent in March, effectively compensating for losses elsewhere in the market.
Among traditional brokers, ICICI Securities expanded its market share from 3.96 per cent to 4.57 per cent, SBI Securities rose from 1.99 per cent to 2.55 per cent, and Dhan climbed to 2.27 per cent. Paytm Money was the biggest net gainer in absolute terms, adding 2.12 lakh active investors during the year.
Analysts attribute the slowdown to multiple headwinds: tighter F&O regulations, prolonged market volatility, expensive valuations, weak IPO listings, and sustained foreign institutional selling. Geopolitical tensions — including the US-Iran-Israel conflict and an escalating trade war — further dampened retail sentiment. Rising crude oil prices above $100 per barrel have added inflationary pressure, while global brokerages including Goldman Sachs, Nomura and Morgan Stanley downgraded Indian equities to neutral or underweight in early 2026.
FY26 marks a clear consolidation phase for India’s broking industry, with growth shifting toward platforms capable of retaining users in a contracting market.