Billionbrains Garage Ventures, the parent company of online brokerage platform Groww, released its first quarterly results since listing on the stock exchanges earlier this month. The company posted a 12% year-on-year increase in consolidated net profit for the quarter ended September 2025, highlighting the resilience of its business model amid a challenging market environment.
For Q2 FY26, consolidated profit rose to ₹471.33 crore, up from ₹420.16 crore in the same quarter last year. This improvement comes despite a decline in revenue from operations, which fell 9.5% YoY to ₹1,018.7 crore, compared to ₹1,125.38 crore in Q2 FY25.
Financial Performance Overview
Groww’s quarterly performance reflects both operational strength and sector-wide pressures.
- Net Profit: ₹471.33 crore (up 12% YoY)
- Revenue from Operations: ₹1,018.7 crore (down 9.5% YoY)
- EBITDA: ₹603.3 crore (up 25% QoQ from ₹483.2 crore)
- EBITDA Margin: 59.3% (vs 53.4% QoQ)
- Expenses: ₹432.60 crore, lower than ₹444.67 crore in Q1 FY26 and significantly below ₹589.80 crore in Q2 FY25
- Employee Expenses: ₹123.76 crore
- Other Expenses: ₹291.01 crore
For the first half of FY26, Groww reported:
- Revenue: ₹2,126.18 crore
- Net Profit: ₹849.71 crore
This follows FY25, where the company recorded ₹3,901.72 crore in revenue and ₹1,824.37 crore in full-year profit.
Revenue Composition and Product Trends
Q2 saw meaningful shifts in product-level contribution.
- High-growth products such as Stocks and MTF each gained 4 percentage points.
- Interest income rose by 2 points, supported by LAS (Loan Against Securities).
- Reliance on Derivatives reduced sharply, contributing 10 points lower than before, partly due to the true-to-label circular impacting per-order revenue.
- Stocks revenue per order increased on the back of a 66% rise in average order value and pricing changes.
The company’s evolving revenue mix indicates a healthier contribution from long-term, high-engagement products.
User Growth and Engagement
Groww continues to attract and retain a strong customer base.
- Active users grew 3.2% QoQ, supported by new user additions and deeper multi-product usage.
- Newly acquired customers contributed 4.5% of the 13% revenue growth in Q2 FY26.
- Mutual Fund SIP-first users: 36% (+7 percentage points YoY)
- Stocks-first users: 37% (–15 percentage points YoY)
- ETF-first users: 6% (sixfold YoY increase)
- IPO-first users: 6% (double YoY)
Product adoption expanded across Mutual Funds, Stocks, Personal Loans + LAS, and MTF, whereas Derivatives penetration saw a pronounced decline.
Groww’s broader ecosystem also continues to strengthen:
- Total transacting users: 19 million (up 27% YoY)
- Customer assets: ₹2.7 lakh crore (up 33% YoY)
- Mutual Funds share of assets: 53%
Market Reaction and Share Price Movement
Groww shares were volatile ahead of the results, having fallen nearly 17% over the previous two sessions and losing over ₹23,000 crore in market capitalisation. However, sentiment improved once Q2 numbers were released.
During the live trading session on 21 November 2025:
- The stock gained between 5%–7%, touching an intraday high of ₹168.39.
- Market capitalisation recovered to above ₹1,03,300 crore.
Since its debut on 12 November, the stock has shown notable strength:
- Listed at ₹114, a 14% premium over IPO price
- Surged 94% within five sessions to hit ₹193.91
- Currently trading significantly above its IPO level of ₹100
Operational Highlights
Several key operating metrics stood out in Q2:
- Margin expanded to 59.3%, signalling strong operating leverage.
- Derivatives revenue per order declined due to regulatory changes.
- Stock-related revenues increased due to higher order values and pricing updates.
Industry experts noted that Groww’s digital scalability, low customer acquisition costs, and high operating efficiency provide structural advantages.
The company reported:
- Net profit margin: ~47% (vs Angel One’s 22.3%)
- Return on Net Worth: 37.57% (vs Angel One’s 20.85%)
What Lies Ahead?
Market participants are awaiting management’s guidance on:
- Q3 trading activity trends
- Monetisation of non-broking verticals
- Pace of cross-selling initiatives
- Impact of regulatory changes on order-level revenue
Given the broader sector backdrop, experts believe investors will focus on how the company navigates the evolving trading environment and sustains its growth momentum.
Also Read:
- Natco Pharma Q2 FY26 Results: Net Profit Down 23.44% YoY; Revenue Slips 0.59%
- MRF Q2 FY26 Results: Profit Jumps 12% YoY, Revenue Rises 7.2%
- Marico Q2 FY26 Results: 31% Revenue Growth Despite a Slight 0.7% YoY Profit Decline
- Oil India Q2 FY26 Results: Revenue Up 4% YoY While Profit Declines 43%; Interim Dividend Declared
- Tata Motors PV Q2 FY26 Results: Profit Soars to ₹76,170 Crore on One-Time Gain as Revenue Declines 13%
Conclusion
Groww’s first post-listing quarterly results highlight a business that continues to expand profitably despite revenue pressures across the brokerage sector. A strong user base, rising customer assets, diversified product engagement, and improving operational efficiency reinforce the company’s competitive positioning. As the industry landscape evolves, Groww’s digital-first model and scalable operating structure will remain key to driving future performance.
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