Groww, Zerodha, Angel One, Upstox lead client exodus in Q4 amid market correction

In Q4, India’s benchmark indices, the Sensex and Nifty, declined by 0.9 percent and 0.5 percent, respectively

Amid the market correction that began in early 2025, most discount brokerage firms witnessed a decline in their active client base during the March 2025 quarter.

According to data from the National Stock Exchange (NSE), the collective loss across all brokerage firms exceeded 9.62 lakh active clients in the fourth quarter to 4.92 crore compared from 5.02 crore last quarter. Notably, over 80 percent of this decline was concentrated among four major discount brokers—Groww, Zerodha Broking, Angel One, and Upstox Securities.

Groww, India’s largest brokerage firm, recorded the steepest decline, with its active client base falling to 1.29 crore in March 2025 quarter from 1.32 crore in the December 2024 quarter, marking a drop of 2.37 lakh investors.

Zerodha, led by founders Nithin and Nikhil Kamath, saw its active clients reduce by 2.31 lakh, reaching 78.89 lakh compared to 81.2 lakh in the previous quarter. Angel One reported a decline of 1.76 lakh clients, ending the quarter at 75.78 lakh, down from 77.54 lakh. Similarly, Upstox witnessed a reduction of 1.39 lakh active clients, closing the quarter at 27.47 lakh from 28.87 lakh.

Other discount brokerages such as 5Paisa Capital, Paytm Money, Sharekhan, Mirae Asset Capital Markets, Kotak Securities, Alice Blue, Motilal Oswal Financial Services, IIFL Securities, SMC Global Securities, Samco Securities, Fyers Securities, Finvasia Securities, Nuvama Wealth, and Axis Securities among others also faced client attrition during this period.

The decline in investor activity aligns with a significant correction in domestic equities since October 2024, alongside a subdued initial public offering (IPO) market. Analysts attribute the drop in participation to multiple headwinds, including lackluster corporate earnings, slowing economic momentum, constrained liquidity, delayed fiscal spending, and persistent inflationary pressures. These domestic concerns, coupled with global uncertainties such as geopolitical tensions and trade disruptions, have dampened investor sentiment considerably.

In Q4, India’s benchmark indices, the Sensex and Nifty, declined by 0.9 percent and 0.5 percent, respectively. In contrast, broader markets saw sharper corrections, with the BSE MidCap and BSE SmallCap indices plunging 10.6 percent and 15.5 percent, respectively.

However, a few discount brokerages defied the trend and reported growth in active client numbers. HDFC Securities added 1.05 lakh active accounts, reaching 15.25 lakh from 14.21 lakh in the previous quarter.

INDmoney, a comprehensive financial management app, grew its active client base by 44,337 to 8.36 lakh. Moneylicious Securities, which operates the Dhan app, added 39,099 clients, bringing its total to 9.72 lakh. PhonePe, the Walmart-backed fintech that recently launched the "Share.Market" platform, saw its active users rise by 33,435 to 3.55 lakh.

Other firms including TradeSmart, Nu Investors Technologies, Market Pulse Securities, Univest Stock Broking, Bajaj Financial Securities, Choice Equity Broking, and Yes Securities among others also recorded growth in active client numbers.