Rise Financial Crosses ₹1,000 Crore Revenue as Market Regulation Hits Dhan Amid Aggressive Strategic Expansion

Rise Financial Crosses ₹1,000 Crore Revenue as Market Regulation Hits Dhan Amid Aggressive Strategic Expansion​

Raise Financial Services, the parent firm behind the trading platform Dhan, has successfully surpassed the ₹1,000 crore mark in operating revenue for FY 26. This significant top-line achievement reflects the company's aggressive push into the broader financial services ecosystem. However, while revenue climbed, the subsidiary Dhan reported a substantial decline in net profit, highlighting the challenges posed by regulatory changes and high growth expenditures.

Margin Compression as F&O Dependency Challenges Persist​

While Raise Financial Services recorded operations revenue exceeding ₹1,000 crore for FY 26, the broking arm Dhan saw its net profits retreat. The trading firm reported a net profit of ₹326 crore in FY 26, which is a 20 percent decline compared to the ₹408 crore reported in the previous fiscal year (FY 25).

This profitability pressure stems directly from regulatory oversight by SEBI regarding Futures and Options (F&O) trading. Dhan currently generates approximately 70 percent of its revenue through F&O, making the platform highly sensitive to market regulations. Sources indicated that expansion costs incurred across multiple categories have put severe strain on existing margins.

Strategic Diversification: Moving Beyond Derivatives Trading​

To mitigate dependency on high-risk derivative trading, Raise Financial Services is actively expanding into core financial services. The company has been aggressively launching various products including Mutual Funds, Systematic Investment Plans (SIPs), insurance solutions, and wealth management services. This push represents a strategic pivot towards diversified, stable financial offerings.

Dhan recently launched 'millions', an investment application focused on mutual funds and SIPs. This new entrant is directly competing with market leaders such as Groww. Furthermore, Dhan continues to strengthen its lending products, noting that the Margin Trading Facility (MTF) crossed ₹500 crore in the last fiscal year.

Market Penetration Amid Fierce Competition​

Founded by former Paytm executive Pravin Jadhav, Raise Financial Services has been rapidly solidifying its position against major players like Groww, Upstox, Angel One, and Zerodha. The company raised approximately $120 million late last year at a valuation of $1.2 billion to fuel its expansion plans.

Dhan currently maintains a base of 10.5 lakh active investors according to National Stock Exchange (NSE) data. Meanwhile, in the insurance distribution space, the firm recently acquired GreenLife Insurance Broking. This acquisition marks its third such move in less than two months and is backed by an investment of around $15 million.

The Path Ahead: Expanding Footprint Across Financial Services​

The focus on expanding product offerings reflects a determined effort to capture market share across multiple financial verticals. While competitors like Groww hold significant market standing, commanding 47 percent in new SIP registrations and 17 percent in active SIP accounts, Dhan is committed to challenging this dominance. The move into specialized services underscores the firm's ambition to become a holistic partner for the investing community.