Groww Q1: Profits Grow 12% YoY To INR 378 Cr

SUMMARY

Groww's operating revenue stood at INR 904.4 Cr in Q1 FY26, down 10% from the INR 1,000.8 Cr in the year ago quarter

The investment tech unicorn managed to trim its expenses by 25% to INR 444.7 Cr in the quarter under review from INR 589.1 Cr in Q1 FY25

Groww has filed its updated DRHP with the SEBI for a proposed IPO, which will comprise a fresh issue of shares worth INR 1,060 Cr and an OFS component of 57.4 Cr shares

IPO-bound Groww saw its consolidated net profit for Q1 FY26 surge 12% to INR 378.4 Cr from the INR 338 Cr profit it registered in the year-ago period. The investment tech company managed to improve its bottom line despite seeing a decline in its top line during the quarter under review.

It got back profitability in the previous fiscal year (FY25) after slipping into the red again in FY24. In FY25, it raked in a net profit of INR 1,824.4 Cr as against a loss of INR 805.5 Cr in the previous fiscal year. Meanwhile, its operating revenue surged about 50% to INR 3,901.7 Cr in FY25 from INR 2,609.3 Cr in the previous fiscal.

In the June quarter (Q1 FY26), Groww’s operating revenue stood at INR 904.4 Cr, down 10% from the INR 1,000.8 Cr operating revenue it recorded in Q1 FY25. Commission income contributed INR 728.9 Cr to the company’s top line in the quarter, registering a near 18% YoY decline from last year.

Meanwhile, interest income on loans and margin trading funding zoomed 124% YoY to INR 81.6 Cr while its interest income on fixed deposits with banks earmarked with stock exchange grew 16% YoY to INR 93.8 Cr.

Including other income of INR 44.1 Cr, Groww’s total income for the quarter stood at INR 948.5 Cr.

The fintech giant filed its updated draft red herring prospectus (UDRHP) with the SEBI today (September 16) for a proposed IPO that will comprise a fresh issue of shares worth INR 1,060 Cr and an offer-for-sale (OFS) component of 57.4 Cr equity shares.

Groww plans to utilise the fresh capital to fuel its brand building and marketing activities, invest in NBFC and mutual fund subsidiaries and expand its cloud infrastructure.

In FY24, Groww’s bottom line was hit by an exceptional item worth INR 1,339.7 Cr. The company reverse flipped back to India for which it paid a tax of nearly INR 1,340 Cr. Minus the hefty tax, Groww’s profits before tax stood at INR 727.9 Cr in the fiscal year.

Breaking Down Groww’s Q1 Expenses

The company managed to grow its profits in Q1 FY26 by slashing its expenses down by 25% to INR 444.7 Cr from INR 589.1 Cr.

Employee Benefit Expenses: These expenses were cut by 45% YoY to INR 136.6 Cr. Groww’s salaries, allowances and bonus reduced by 55% YoY to INR 105.5 Cr, which possibly translates to lay-offs undertaken since last June.

Marketing Expenses: It spent INR 108.5 Cr for promotions in the quarter, down by 41% from INR 182.2 Cr spent in the same quarter last year.

Tech Expenses: The expenditure on software, server and technology increased by 10% YoY to INR 104.4 Cr.