HDFC Securities is seeing a mixed trend, with strong financial growth but a decline in active users and market share. While revenue and profit continue to grow, the company is losing ground to digital broking platforms. For unlisted investors, the key question is whether HDFC Securities can stabilise its user base while maintaining its strong profitability.
Active User Base Declines Further
HDFC Securities saw its active user base decline in July, even as the brokerage reported strong revenue and profit growth in the first quarter of FY27. The company lost around 9,170 active users during the month, taking its total active user base to approximately 13.82 lakh. Its market share stood at around 2.94%, compared with nearly 3.3% in July last year, indicating that the company is gradually losing ground in India’s highly competitive retail broking market.
One-Year User Loss Raises Concern
The decline has been more visible over a longer period. HDFC Securities has lost around 2.39 lakh active users over the past year, while its active user base has declined by approximately 1.14 lakh users so far this year. The broader Indian broking market is also witnessing intense competition, particularly from digital-first platforms. India’s total active user base currently stands at around 4.54 crore. Groww remains the largest player with around 1.31 crore active users and a 28.88% market share, followed by Zerodha with approximately 67 lakh active users and a 14.88% market share. HDFC Securities currently ranks seventh with around 13.82 lakh active users and a 2.94% market share.
Strong Q1 FY27 Financial Performance
Despite the pressure on its active user base, HDFC Securities delivered a strong financial performance in Q1 FY27. Revenue increased 30% year-on-year to ₹949 crore from ₹729 crore in Q1 FY26, while profit after tax rose 28.3% to ₹297 crore from ₹232 crore. The company has around 80 lakh customers and operates through 127 branches across 100 cities, giving it a significant presence in India’s brokerage and financial services market.
What It Means for HDFC Securities Unlisted Investors
For HDFC Securities unlisted investors, the latest numbers present a mixed picture. The strong growth in revenue and profit shows that the company continues to generate healthy earnings despite the decline in active users. However, the continued loss of active users and market share remains an important metric to monitor.
The key question going forward is whether HDFC Securities can use its large customer base, HDFC Group ecosystem and physical presence to regain active users and compete with faster-growing digital brokers. If the company can maintain strong profitability while stabilising its user base, the impact could remain manageable. However, if the decline in active users continues, it could become a concern for the company’s long-term growth and valuation in the unlisted market.