Groww shares jump 8% after Q1 profit surges 94% YoY; revenue climbs 66%

Shares of Billionbrains Garage Ventures Ltd., which operates investment platform Groww, rose as much as 7.8% intraday to ₹219.62 on Tuesday after the company reported a sharp jump in first-quarter earnings, driven by strong operating leverage and continued growth across newer business segments.

For the quarter ended June 30 (Q1 FY27), Groww reported a 94.3% year-on-year (YoY) increase in consolidated net profit to ₹735 crore, while revenue from operations rose 66% to ₹1,501 crore. EBITDA more than doubled to ₹971 crore, with the EBITDA margin expanding to 64.6% from 53.5% a year earlier.  

Sequentially, revenue remained largely flat, but net profit rose 7% and EBITDA increased 3.4%, reflecting improved profitability.

Market share grows amid industry slowdown

In its shareholder letter, the company said it continued to gain market share despite weaker retail participation.

“We added 115k net NSE Active Clients, driven by higher retention and superior product quality, despite an industry-wide slowdown,” Groww said, adding that the overall industry saw a net decline of around 257,000 NSE active clients during the quarter.

The company also retained its leadership in direct mutual fund distribution, with ₹1.9 lakh crore in direct mutual fund assets under management. SIP inflows rose 32% year-on-year, outpacing the industry’s 16% growth.

New businesses drive revenue diversification

Groww said newer businesses such as margin trading facility (MTF), commodity derivatives and Loans Against Securities (LAS) continued to increase their contribution to revenue, reducing dependence on equity derivatives.

“We expect the trend of revenue diversification away from Equity Derivatives to continue,” the company said.

The company added that tighter risk controls implemented in MTF and intraday trading after the previous quarter’s volatility tempered market-share gains but strengthened the quality of growth. Despite this, stocks average daily turnover rose 48% YoY, while the MTF book expanded 264.4% YoY.

AI, AMC remain key growth focus

Groww said it is expanding the use of artificial intelligence across engineering, customer support and investment products, including its AI-powered mutual fund advisory offering, MF Prime.

The company also said its asset management business continued to scale rapidly, with Groww AMC’s assets under management rising around 140% year-on-year, while reiterating that investments in AI are not expected to materially impact margins because of the platform’s scale.