Groww’s parent company, Billionbrains Garage Ventures, reported a consolidated net profit of ₹725.6 crore in the second quarter of FY2026–27, up approximately 54% from ₹471.3 crore in the corresponding quarter last year. Revenue from operations increased 47.4% year-on-year to ₹1,501.5 crore, reflecting continued growth in the company’s investing and financial services businesses.
The results for the quarter ended September 30, 2026, show that Groww continued to expand its customer base and diversify beyond traditional stockbroking. However, its performance was more moderate compared with the June quarter, as profit declined slightly sequentially and revenue remained almost unchanged. The company also faced pressure in equity derivatives following changes associated with the closing auction session framework, making its newer business segments increasingly important to its growth strategy.
Key Takeaways
- Net profit: ₹725.6 crore in Q2 FY27, up approximately 54% year-on-year.
- Revenue: ₹1,501.5 crore, an increase of around 47.4% from a year earlier.
- Operating performance: EBITDA stood at approximately ₹968–969 crore, with a margin of about 64.5%.
- User additions: Groww added 11 lakh new transacting users during the quarter.
- IPO activity: Around 42 lakh users applied for equity IPOs through the platform, giving it a reported 22% share of total allotments.
- Diversification: Margin trading, commodity derivatives and wealth management helped broaden the company’s revenue base.
- Sequential trend: Net profit slipped slightly from Q1 FY27, despite strong annual growth.
Groww Q2 FY27 Results: Financial Highlights
Groww’s quarterly results show substantial growth compared with the same period last year. The increase in revenue was accompanied by a faster rise in net profit, supporting a higher profit margin.
Q2 FY27 financial results
| Financial metric | Q2 FY27 | Q2 FY26 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹1,501.5 crore | ₹1,018.7 crore | +47.4% |
| Consolidated net profit attributable to owners | ₹725.6 crore | ₹471.3 crore | Approximately +54% |
| EBITDA | Approximately ₹968–969 crore | Approximately ₹604 crore | Approximately +60% |
| EBITDA margin | Approximately 64.5% | Approximately 59.3% | Higher by about 5.2 percentage points |
Source: Reported Q2 FY27 financial results. Figures are rounded; EBITDA and margin figures may vary slightly across reports.
The numbers indicate that Groww increased revenue while also improving its reported operating profitability. Its EBITDA margin rose to around 64.5%, compared with approximately 59.3% a year earlier.
EBITDA, or earnings before interest, taxes, depreciation and amortisation, is commonly used to assess operating performance before certain accounting and financing costs. It is not the same as net profit or cash flow.
Year-on-Year Growth Versus Quarter-on-Quarter Performance
The annual comparison presents a strong growth picture, but the sequential comparison provides additional context.
| Financial metric | Q1 FY27 | Q2 FY27 | Sequential trend |
|---|---|---|---|
| Revenue from operations | ₹1,501.4 crore | ₹1,501.5 crore | Almost unchanged |
| Net profit attributable to owners | ₹735 crore | ₹725.6 crore | Down approximately 1.3% |
| EBITDA | Approximately ₹960 crore | Approximately ₹968 crore | Up slightly |
Figures are rounded from reported results.
Revenue remained broadly flat compared with Q1 FY27, while net profit fell by roughly 1.3%. This means the company’s strong annual growth did not translate into a similar increase over the preceding quarter.
The distinction matters because year-on-year comparisons can reflect business expansion over a full year, whereas quarter-on-quarter comparisons reveal more recent changes in operating momentum. Groww’s Q2 results suggest that its business remained profitable at a high level, but its next phase of growth will depend on customer activity, product mix and cost management.
User Growth and IPO Activity Support the Business
Customer acquisition remained an important contributor to Groww’s performance. The company added approximately 11 lakh new transacting users during the September quarter.
Primary-market activity also supported engagement on the platform. Around 42 lakh users applied for equity initial public offerings through Groww, giving the company a reported 22% share of total IPO allotments.
IPO participation can introduce new investors to a brokerage platform and encourage them to explore additional services, including stock investing, mutual funds and other financial products. However, applications do not necessarily translate into allotments, sustained trading activity or recurring revenue.
For Groww, the longer-term opportunity lies in turning new registrations and IPO-related engagement into active customer relationships. The number of users who continue transacting, the assets they maintain on the platform and the products they use will be important indicators of business quality.
Equity Derivatives Face Pressure From CAS Changes
One of the key developments during the quarter was the impact of changes associated with the Closing Auction Session (CAS) on equity derivatives activity.
According to the company’s reported commentary, equity derivatives revenue declined 14.3% quarter-on-quarter, with Groww attributing most of the decline to CAS-related effects. The contribution of equity derivatives to total income also fell compared with the previous year.
Equity derivatives have historically been an important revenue source for Indian brokerage platforms. Regulatory and market-structure changes affecting trading activity can therefore influence brokers’ results, particularly when a substantial portion of their income depends on derivatives transactions.
Groww said a Securities and Exchange Board of India consultation paper proposed changes that, if implemented, could help normalise activity. A consultation paper is not a final regulatory decision, so any recovery remains dependent on the eventual rules and their impact on market behaviour.
The development highlights the importance of revenue diversification. Companies that rely heavily on one product or trading segment may be more vulnerable to regulatory changes, while a broader product portfolio can help cushion the impact.
Margin Trading and Commodity Derivatives Gain Importance
Groww has been expanding its offerings beyond conventional stockbroking. Its margin trading facility (MTF) and commodity derivatives businesses contributed to the broader product mix during the quarter.
MTF allows eligible customers to obtain funding to purchase securities, subject to applicable terms, collateral requirements and regulatory rules. The product can create financing-related revenue for a brokerage group, but it also introduces credit exposure, funding costs and risk-management requirements.
Commodity derivatives provide another potential revenue stream. Their contribution depends on customer participation, trading volumes and the economics of the product.
These businesses may help reduce dependence on equity derivatives, but diversification does not eliminate business risk. The company must manage customer credit, operational costs, compliance obligations and changing market conditions across its expanding product range.
Groww’s Wealth and Asset Management Businesses Expand
Groww’s asset management business also continued to grow. Its asset management company reported assets under management of ₹7,179 crore, up approximately 145% year-on-year from ₹2,928 crore.
The share of actively managed assets increased to 57%, compared with 47% a year earlier. The asset management business also recorded 131% year-on-year revenue growth during the quarter, although it reported a net loss of ₹8.3 crore.
These figures suggest that the company is investing in business lines that can complement its core brokerage operations. Asset management can generate fee-based revenue tied to assets under management, while wealth-related services can help deepen customer relationships.
However, rapid asset growth does not automatically result in profitability. Revenue depends on product mix, fee rates and customer flows, while operating expenses and distribution costs determine how much of that revenue reaches the bottom line.
For investors tracking Groww’s business model, the pace at which these newer segments scale and become profitable will be an important factor in assessing the company’s long-term earnings mix.
Expenses Rise as Groww Scales Its Platform
Groww’s consolidated expenses increased approximately 29% year-on-year, according to reported results. The company cited higher technology costs, a greater number of trading days, one-time reimbursements to customers for abnormal trades and inflation in computer-related costs, including expenses associated with AI.
Technology spending is a recurring requirement for digital financial platforms. Companies need to maintain reliable trading infrastructure, protect customer information, meet compliance obligations and support growing transaction volumes.
More trading days can also increase the cost of serving customers. As a platform expands, infrastructure and support expenses may rise even when the additional activity creates revenue opportunities.
The important question is whether revenue and operating earnings continue to grow faster than the underlying cost base over time. Groww’s reported margin improvement indicates that it maintained strong operating profitability in Q2 FY27, but continued investment and technology inflation remain factors to monitor.
What Groww’s Results Mean for India’s Fintech Sector
Groww’s performance reflects the scale that India’s digital investing platforms have achieved as more retail customers participate in financial markets. Mobile-based access, simplified onboarding and a broader range of investment products have helped platforms expand their reach.
The results also highlight a shift in the competitive landscape. Brokerage firms are increasingly looking beyond individual stock transactions to build broader financial services businesses that include mutual funds, wealth management, margin funding and commodity products.
That expansion can create multiple sources of revenue, but it also requires stronger technology, compliance and risk-management systems. Customer growth alone is not sufficient: sustainable performance depends on customer retention, product usage, service reliability and the economics of each business line.
Regulatory changes remain another important factor. Any change affecting derivatives trading or customer participation can alter revenue patterns across the brokerage industry. Companies with diversified income streams may be better positioned to manage such changes, although the degree of protection will depend on the size and profitability of their other businesses.
Risks and Factors to Watch
Regulatory changes: Changes to derivatives trading rules or market structure could affect trading volumes and brokerage revenue.
Customer activity: New user additions are valuable only if customers remain active and use the platform over time.
Technology expenses: Rising infrastructure and computing costs could put pressure on margins if revenue growth slows.
Credit exposure: Expansion of margin trading requires disciplined underwriting, collateral management and funding controls.
Competition: Brokerage platforms compete on pricing, product features, technology reliability and customer experience.
Profitability of newer businesses: Growing assets under management and wealth assets are encouraging indicators, but their contribution to consolidated profits depends on costs and fee economics.
These factors will help determine whether Groww can sustain its high margins and continue growing earnings as its business becomes more diversified.
The Bigger Picture
Groww’s Q2 FY27 results show a company that is growing significantly on an annual basis while managing a changing regulatory and competitive environment. Revenue rose 47.4% year-on-year, and net profit increased approximately 54%, supported by customer additions, IPO activity and contributions from a wider range of products. At the same time, nearly flat sequential revenue and a modest fall in profit indicate that recent-quarter momentum was more subdued than the annual figures alone suggest.
The company’s longer-term performance will depend on its ability to balance growth with risk management. Expanding into asset management, wealth services, margin funding and commodity derivatives could broaden its revenue base, but these businesses have different cost structures and risks. Maintaining customer trust, controlling technology expenses and adapting to regulatory changes will be central to turning platform scale into durable profitability.
Looking Ahead
In the coming quarters, investors and industry observers will likely focus on customer additions, revenue per active user, equity derivatives activity, operating expenses and the profitability of Groww’s newer businesses. Any changes to the CAS framework following SEBI’s consultation process could also influence trading activity, although the timing and extent of any impact remain uncertain. The next results will help show whether the company can return to stronger sequential growth while maintaining its reported margins.
Over the longer term, Groww’s opportunity is to evolve from a stockbroking platform into a broader financial services business. Its expanding customer base and growing asset management operations provide a foundation for that strategy, but continued success will depend on disciplined execution and sustainable unit economics. The Q2 FY27 results establish a strong year-on-year growth comparison; the key test will be whether that growth can be maintained as the business scales and market conditions change.
Frequently Asked Questions
1. What was Groww’s net profit in Q2 FY27?
Groww’s parent company, Billionbrains Garage Ventures, reported consolidated net profit attributable to owners of approximately ₹725.6 crore for Q2 FY27.
2. What was Groww’s revenue in Q2 FY27?
Revenue from operations stood at approximately ₹1,501.5 crore, up about 47.4% year-on-year.
3. How much did Groww’s profit grow year-on-year?
Net profit attributable to owners increased approximately 54%, from ₹471.3 crore in Q2 FY26 to ₹725.6 crore in Q2 FY27.
4. Why did Groww’s equity derivatives revenue decline?
Groww attributed a 14.3% quarter-on-quarter decline in equity derivatives revenue largely to the impact of CAS-related changes affecting market activity.
5. How many new users did Groww add during the quarter?
Groww added approximately 11 lakh new transacting users during Q2 FY27.
6. How fast did Groww’s asset management business grow?
Its asset management company’s assets under management increased approximately 145% year-on-year to ₹7,179 crore.
7. Did Groww’s profit increase compared with the previous quarter?
No. Net profit attributable to owners declined by approximately 1.3% from ₹735 crore in Q1 FY27 to ₹725.6 crore in Q2 FY27.
8. What are the main factors to watch after Groww’s Q2 results?
Important indicators include customer activity, derivatives revenue, regulatory developments, technology costs, margin trading growth and the profitability of its asset management and wealth businesses.
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