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Groww's Q3 Income Hits Rs 12,611M as State Street Invests Rs 5,800M

Groww's parent company reported an 18% quarter-on-quarter increase in consolidated total income, reaching Rs 12,611 million for Q3 FY26. The growth was fueled by a rise in active users and new products like commodity derivatives. Simultaneously, the firm announced a major Rs 5,800 million investment from US-based State Street for a stake in its asset management subsidiary. While reported profit after tax declined due to a one-off adjustment reversal, the company highlighted a 24% year-on-year growth in operational profit.

Key Points: Groww Q3 FY26 Results: Income Up, State Street Investment

  • 18% QoQ income growth to Rs 12,611M
  • Rs 5,800M investment from State Street for ~23% stake
  • Adjusted EBITDA at Rs 7,418M, operational PAT up 24% YoY
  • Revenue mix diversifying as new products drive growth
2 min read

Groww reports Rs 12,611 million total income in Q3 FY26 amid US-based State Street's Rs 5,800 million investment

Groww reports Rs 12,611M total income in Q3 FY26, an 18% QoQ rise. State Street invests Rs 5,800M for a stake in its asset management arm.

"We think it is better to look at Adjusted EBITDA to determine the operating health of the company due to the one-off adjustments - Company Filing"

New Delhi, January 14

Billionbrains Garage Ventures Limited, the parent company of the investment platform Groww, reported an 18 per cent quarter-on-quarter increase in its consolidated total income for the third quarter of fiscal year 2026, reaching Rs 12,611 million. According to a Groww regulatory filing, the firm's total income rose 26 per cent compared to the same period last year, though profit after tax saw a 28 per cent decline during the quarter.

The company attributed the rise in income to a 7.5 per cent growth in active users and increased adoption of new products, including commodity derivatives and margin trading facilities. These new offerings accounted for 49 per cent of the growth in total income during this period.

The firm also announced a Rs 5,800 million investment from State Street Investment Management (SSIM) for an approximately 23 per cent stake in its subsidiary, Groww Asset Management Limited.

"State Street Investment Management, the asset management division of State Street Corporation, is the fourth largest asset manager globally, with $5.5 Tn in AUM (as of September 2025). The transaction with SSIM, subject to regulatory approvals, involves a total investment of ~5,800 Mn by SSIM for a ~23% stake in Groww Asset Management Limited, a wholly owned subsidiary of Billionbrains Garage Ventures Limited."

Additionally, the firm noted a shift in its revenue mix, as its primary products, stocks and equity derivatives, saw their combined contribution to total income decrease from 81 per cent in the previous year to 72 per cent in the current quarter.

The decline in profit after tax to Rs 5,469 million was primarily influenced by the reversal of a one-time long-term management incentive provision that significantly boosted the previous year's figures. Adjusting for this non-recurring item, the company stated that operational profit after tax actually grew by 24 per cent year-on-year.

"We think it is better to look at Adjusted EBITDA to determine the operating health of the company due to the one-off adjustments," the company noted in the filing, reporting an Adjusted EBITDA of Rs 7,418 million for the quarter.

The filing also detailed growth in the platform's credit business, with the Groww CreditServ book increasing 7 per cent quarter-on-quarter to approximately Rs 13,900 million.

While personal loans showed marginal growth, the "loans against securities" segment more than doubled its book size, representing 9.7 per cent of the total loan book. Total customer assets on the platform reached Rs 3.0 trillion, a 12 per cent increase from the previous quarter, driven largely by net inflows.

- ANI

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Reader Comments

P
Priya S
The revenue mix shifting away from just stocks is smart. Commodity derivatives and margin trading are the future for serious retail investors. Good to see them diversifying. I've started using their new features and the UI is quite intuitive.
R
Rohit P
Profit after tax down 28% looks worrying at first glance, but the explanation makes sense. The one-time provision last year skewed the comparison. The 24% operational profit growth YoY is the real story. Adjusted EBITDA looks solid.
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Sarah B
As an NRI investor, this is encouraging. State Street's involvement brings global credibility. Might consider moving more of my portfolio to Groww for the Indian market exposure. The platform has come a long way from just mutual funds.
K
Karthik V
Rs 3.0 trillion in customer assets! That's massive growth quarter on quarter. Net inflows are strong, which means people are trusting them with their money. The credit business growing, especially loans against securities, shows they're tapping into the HNI segment effectively.
M
Michael C
A respectful critique: While the income growth is impressive, I hope this foreign investment and push for new, complex products like derivatives doesn't lead to the platform encouraging excessive risk-taking among new retail investors. Financial literacy in India is still growing. The focus should remain on safe, long-term wealth creation.
N
Neha E

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