NewKerala.com

Groww Parent Sees 28% Profit Drop Despite Strong User Growth in Q3

Billionbrains Garage Ventures, the parent company of stock broking platform Groww, reported a 27.8% year-on-year decline in consolidated net profit for Q3 FY26, despite a 24.8% rise in operational revenue. On a standalone basis, the profit drop was steeper at 36.7%, though adjusted EBITDA showed improvement. Despite the profit pressure, Groww demonstrated robust user growth, crossing 2 crore transacting users and gaining significant market share in both cash equity and derivatives segments. The platform also saw strong growth in SIP inflows, which surged 30% year-on-year.

Key Points: Groww Parent Q3 Profit Falls 28%, Revenue Up 25%

  • Profit fell 28% YoY to Rs 547 cr
  • Revenue rose 25% YoY to Rs 1,216 cr
  • Transacting user base crossed 2 crore mark
  • Market share in cash equities grew to 28.8%
2 min read

Groww parent company Billionbrains' Q3 profit falls 28 pc

Billionbrains, Groww's parent, reports 28% profit decline but 25% revenue growth in Q3 FY26. User base crosses 2 crore as market share expands.

"Groww was the only major broker to record growth in all three months of October, November and December - Company Data"

Mumbai, Jan 14

Billionbrains Garage Ventures, the parent company of stock broking platform Groww, on Wednesday reported a sharp fall in profits for the third quarter of financial year 2026.

The company's consolidated net profit declined 27.8 per cent year-on-year (YoY) to Rs 546.93 crore in Q3 FY26, compared with Rs 757.11 crore in the same quarter last financial year.

On the other hand, revenue from operations rose 24.8 per cent to Rs 1,216.07 crore from Rs 974.53 crore reported a year ago, according to its stock exchange filing.

On a standalone basis, the company's performance was weaker. Profit after tax fell 36.7 per cent year-on-year (YoY) to Rs 428.45 crore in the December quarter, compared with Rs 677.46 crore in the corresponding period of the previous financial year.

However, adjusted EBITDA improved during the quarter and stood at Rs 741.80 crore, up from Rs 598.1 crore in Q3 FY25, according to the company's investor presentation.

Despite an overall slowdown across the broking industry over the past year, Groww continued to add users at a healthy pace.

The company's total transacting user base grew 25 per cent and crossed the 2 crore mark. Active users also increased, with a 7.5 per cent quarter-on-quarter growth.

In Q3, Groww was the only major broker to record growth in all three months of October, November and December, adding 2.17 lakh active NSE clients during the quarter.

The total value of customer assets on the platform jumped 39 per cent year-on-year.

Groww also strengthened its position in equity markets. Its market share in cash equities rose to 28.8 per cent in Q3 from 21.6 per cent a year ago.

In equity derivatives, the company's market share increased sharply from 12.2 per cent to 18.1 per cent during the same period.

Retail cash average daily turnover grew 21 per cent to Rs 11,331 crore, while retail derivatives average daily turnover surged 45 per cent to Rs 11,483 crore.

In the mutual fund segment, Groww saw a modest rise in market share from 12.3 per cent to 13.7 per cent.

However, SIP inflows through the platform showed strong growth, increasing 30 per cent year-on-year to Rs 12,328 crore in Q3 from Rs 9,476 crore in the year-ago quarter.

- IANS

Share this article:

Reader Comments

P
Priya S
As a Groww user, I'm not too worried. The platform is still the best for beginners like me. SIP inflows up 30% shows people are trusting it for long-term investing. Profit margins might be squeezed because they are spending on acquiring customers and tech. It's a marathon, not a sprint. 💪
R
Rohit P
A 28% profit fall is significant, yaar. While user growth is good, investors need to see bottom-line growth eventually. The broking industry is getting very competitive with Zerodha, Upstox, etc. Hope this is a temporary phase and not a sign of deeper issues with their business model.
S
Sarah B
The data is actually quite strong from an operational perspective. Revenue up 25%, EBITDA improved, customer assets up 39%, and they gained market share in both cash and derivatives. The profit dip could be due to one-time costs or heavy marketing. The underlying business health looks good.
V
Vikram M
This is the reality of the discount broking space. To gain users, you have to spend heavily. The fact that they were the only major broker to grow every month in Q3 is impressive. Market share jumping from 21.6% to 28.8% in cash equities is huge! They are eating the competition's lunch.
K
Kavya N
The mutual fund market share growth seems slow (12.3% to 13.7%). Maybe they are focusing more on the trading side? Still, SIP number is strong. For a country where savings are moving from FDs to markets, Groww's user-friendly app is doing a great service. Profit will follow.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50