Demat Account Growth Slows in Dec 2025 Amid Market Volatility

The expansion in dematerialised (demat) accounts slowed significantly in 2025, with growth nearly halving amid muted equity market returns. Around 30.6 million new demat accounts were added during the year, translating into an average of 2.6 million additions per month. Overall, demat accounts grew 17% in 2025, a sharp moderation from the 33% increase recorded in the previous year, taking the total count to 216 million.

Market Volatility Weighs on Investor Sentiment

Indian equity markets remained volatile throughout 2025 as investors contended with declining corporate earnings and uncertainty surrounding trade relations with the US. The imposition of 50% punitive tariffs by the US last year, with no favourable resolution despite ongoing negotiations, dampened sentiment. Despite these challenges, the benchmark indices posted moderate gains, with the Sensex rising 9.06% and the Nifty advancing 10.5% during the year.

Shifting Trends Among Discount Brokers

Brokerage data highlighted diverging trends among leading platforms. According to NSE data, Groww added around 39,500 active demat accounts in a single month, taking its total client base to about 1.21 crore (12.13 million).

Zerodha, however, continued to lose clients for several months. After shedding nearly 1 lakh users in November, it lost another 72,000 accounts in December, reducing its client base to 68.5 lakh and its market share to 15.29%. Angel One followed closely with a 15.08% market share and 67.6 lakh clients, after losing more than 36,500 users in December. Upstox, ranked fourth, also reported a decline of over 74,000 accounts, leaving it with 20.8 lakh clients and a 4.64% market share.

Traditional Brokers Show Mixed Performance

Among traditional brokerages, ICICI Securities and SBI Caps added approximately 19,500 and 25,300 accounts, respectively. Paytm also recorded net additions of about 18,700 accounts. However, several established players, including HDFC Securities, Kotak Securities, and Motilal Oswal, reported a net decline in client numbers during the period.

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