Groww Q2: Profit Jumps 12% YoY To INR 471 Cr

Recently listed Groww posted a 12% increase in its consolidated net profit to INR 471.3 Cr in the second quarter of the ongoing fiscal year (Q2 FY26) from INR 420.2 Cr in the same quarter last year. 

Sequentially, profit jumped nearly 25% from INR 378.3 Cr, as active users grew 3.2% QoQ led by growth in new user acquisition and a higher number of users engaging across multiple products with higher user activity.

Notably, the company had made a provision for a one-time long-term incentive of INR 159.3 Cr in the year-ago quarter, which resulted in the YoY decline in profit. 

“In Q2 last year, we had a provision for a one-time long-term incentive amounting to INR 159.3 Cr, which was reversed in Q3 FY25 along with the INR 159.3 Cr provision from Q1 FY25 as well. If we were to exclude this, adjusted for tax, the profit after tax would have been higher in Q2 last year and Q2 FY26 profits would have decreased 12-13% YoY,” Groww said in its investor presentation.

Meanwhile, the brokerage’s operating revenue declined 9.5% to INR 1,018.7 Cr in the quarter under review from INR 1,125.3 Cr in Q2 FY25. The company attributed this decline to  true-to-label and equity derivatives’ regulations introduced last year.

However, revenue jumped over 12% from INR 904.4 Cr in the preceding June quarter.

Groww said it is investing capital to scale its margin trading facility MTF and credit (loan against securities) business. Additionally, the company also had a payout of INR 961 Cr for the acquisition of wealthtech startup Fisdom in the September quarter.

Including other income of INR 52 Cr, Groww’s total revenue for the quarter stood at INR 1,071 Cr. 

Meanwhile, Groww managed to trim its total expenses by 27% to INR 432.6 Cr during the quarter under review from INR 590 Cr in the second quarter of FY25. Employee benefit expenses declined 53% YoY to INR 123.7 in Q2 FY26 from INR 264.2 Cr earlier. 

Founded in 2016 by Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, Groww is a full-stack financial services platform offering mutual funds, stockbroking, asset management, margin trading, and wealth management products. 

Groww said it had 19 Mn transacting users at the end of September quarter, up 5% QoQ and 27% YoY, while the number of active users stood at 14.8 Mn.

It currently holds total customer assets worth INR 2.7 Lakh Cr (about $30.5 Bn). Out of this, mutual funds account for 53% of the assets. 

Groww’s User And Revenue Mix 

Groww said that users’ first touch point is mostly stocks and mutual fund SIPs. Nearly 70% of the users opt for these two products while using the company’s platform for the first time. 

“In Q2 FY26, 36% of our new users were mutual funds SIP-first, (+) 7pp share versus Q2 last year. Stocks-first is at 37%, but (-) 15pp share YoY. The share of ETF-first users at 6% is now 6X from last year whereas IPO-first, which includes equities and bonds, is now 6%, 2X YoY,” it said in the presentation. 

In terms of revenue mix, Groww said 57% of its total revenue in Q2 FY26 came from equity derivatives, a decline of 11 percentage points from 68% in the same quarter last year. Stocks accounted for 19% of the revenue during the quarter under review, an increase of 4 percentage points from 15% in Q2 FY25. 

The MTF business brought in a revenue of 5% during the quarter under review. Groww said it has scaled the MTF business to 78K active users since its launch in April 2024.

“The net funded book is INR 1,668.3 Cr at end of Q2 FY26 – translating into a market share of 1.7%. We believe we are still in the nascent stages of this journey and will continue to grow, led by higher penetration, ultimately leading to a fair market share aligned with that of our stocks Average Daily Turnover (ADTO),” the company said.

Groww Bets On Fisdom, Credit Business For Growth

In early October, Groww completed the acquisition of wealthtech platform Fisdom in an all-cash deal at a valuation of about $150 Mn. 

Founded in 2015 by Anand Dalmia and Subramanya SV, Fisdom provides a suite of wealth management services spanning mutual funds, stocks, bonds, and PMS.

While Fisdom’s numbers were not included in Groww’s Q2 statement, it said that the startup’s revenue stood at  INR 166.3 Cr in FY25. 

Groww is banking on Fisdom to power its growth in the coming years. The company said it is witnessing an increase in the number of affluent customers across India. These customers have higher financial wealth, larger investment portfolios, and typically more complex financial needs than the average retail investor. This puts Fisdom in a position to drive revenue growth. 

Besides, Groww also sees a big opportunity in the lending tech segment, which it entered in 2022 after its subsidiary Groww Creditserv Technologies bagged an NBFC licence. The company said that the NBFC’s disbursements grew to INR 144.4 Cr during the quarter, 36% of which came from  36% loan against securities.

“We saw 9.8K customers use the product on our platform in this quarter. Personal loans continued to scale at an organic growth rate,” it added.

On its recent foray in the commodities trading segment, Groww said it witnessed 7-8K average daily transacting users and 8-10 orders per user per day by the end of September quarter.

Shares of Groww were trading 0.9% higher at INR 158 on the BSE at 14:15 IST.