He noted that FY25 regulatory changes had a significant impact on F&O revenues, which were lower last year compared to the current quarter, largely due to a weaker base and a rebound effect as conditions normalised.
He added that heightened volatility in the current quarter also supported stronger F&O performance. Structurally, however, the penetration of equity derivatives has changed meaningfully, with participation falling from about 18% of customers earlier to nearly 10% now, which he described as the new normal. Going forward, he expects growth to be driven by overall industry expansion, increasing customer numbers, and higher per-user activity, as younger investors gradually move into derivatives alongside equities.
On the recent increase in Securities Transaction Tax (STT), Bansal said the company has not yet seen any significant impact on trading volumes. He observed that while futures may have seen some early pressure, options volumes remain largely unaffected. Given that the change has been in place for only around 15–20 days, he said it is too early for a full assessment, but currently there is no indication of a meaningful impact in the coming quarter or the full year.
Discussing the revenue mix, he said equity derivatives still contribute around 55% of revenues, but this share is expected to gradually decline as newer businesses scale. Products such as margin trading facility (MTF), commodities, and wealth management are growing faster, even though they are currently smaller in size.
He expects F&O’s contribution to eventually fall below 50% as these segments expand, although F&O itself will continue to grow, just at a slower pace relative to others. He also highlighted that wealth and asset management currently contribute only 2–3% of revenue but could rise to around 10% over the medium term, eventually becoming a meaningful contributor to profitability.
On MTF, Bansal said the current book stands at around ₹2,800 crore, which is still a small share of the overall market. He believes the business has the potential to grow closer to the company’s equity cash market share over the next three to four years, implying strong expansion ahead. Commodities and equity derivatives, being relatively newer products, are also expected to scale significantly over the coming years, with a more meaningful contribution visible from FY27 onwards.Explaining the steady-state growth algorithm in a flat market, Bansal said growth is driven by three main factors: continued market share gains, increasing penetration of products across the customer base, and rising activity levels per user in terms of transactions and assets. Even in a stagnant market environment, these factors allow the business to grow steadily, while stronger overall market conditions further amplify growth through higher customer acquisition and activity levels.
