Groww Q3: Profit Falls 28% YoY To INR 547 Cr On One-Time Incentive Boost Reversal

Brokerage platform Groww’s consolidated profit after tax (PAT) fell 28% to INR 546.9 Cr in the quarter ended December 31, 2025 (Q3 FY26) from INR 757.1 Cr in the year-ago period. However, PAT grew 16% sequentially from INR 471.3 Cr in the previous quarter. 

In its shareholders’ letter, Groww said the year-on-year decline in profit was because of the impact of a one-time long-term incentive (LTI) provision created in February 2024 following its reverse flip to India. The company had provisioned INR 53.1 Cr per month for eight months, aggregating to INR 424.7 Cr. This provision was reversed during Q3 FY25, resulting in decline in total expense in the year-ago period and impacting reported profitability in Q3 FY26.

“At an operational level, our PAT grew 24% YoY in Q3, higher than growth in operating revenue,” Groww said. Further, its adjusted EBITDA for the quarter under review stood at INR 741.8 Cr, up 24% YoY and 19% QoQ. 

Meanwhile, Groww’s operating revenue jumped 25% YoY and 18% QoQ to INR 1,216.1 Cr in Q3 FY26. Including other income of INR 45 Cr, total income for the quarter stood at INR 1,261.1 Cr.

The discount broking platform attributed the top line growth to 7.5% QoQ rise in its active user base while retaining existing customers and increased adoption of its product portfolio – commodity derivatives, margin trading facility (MTF), loan against securities (LAS) and Fisdom – which accounted for 49% of the growth in total income in Q3. 

Groww managed to reduce its dependency on its bread-and-butter equity derivatives business, with it accounting for 53% of the total income during the quarter as against 63% in the year-ago period. 

While revenue contribution from its stock vertical largely remained flat at 18%, contribution from its other revenue verticals improved 10% in the quarter.

On the expenses front, total expenditure stood at INR 515.6 Cr during the quarter under review as against a credit of INR 17.7 Cr in the year-ago period. 

Groww separated its expenses for the quarter into two categories — cost to serve and cost to grow. While cost to grow, which refers to the company’s marketing and promotional spends, increased 23% YoY to INR 124.6 Cr, cost to serve, which refers to operational expenses, rose 17% YoY to INR 152.1 Cr. 

The company incurred higher expenses for its cost to serve portion due to the launch of its commodity derivatives segments, which it noted scaled faster than expected. To note, this segment was launched on the Groww platform in Q2 FY26. It accounted for about 5% of broking orders of Groww in the first full quarter of operations.

The commodity derivatives segment catered to 2.55 Lakh active users in the quarter under review, implying an attach rate of 1.6% in overall users. “The scale-up in commodities over the next few quarters will be a function of growth in user adoption as well as the industry,” Groww said.

Groww also saw a decent growth in its NBFC business as well as asset management (AMC) vertical in the quarter. Its NBFC Groww CreditServ’s book grew 7% QoQ to INR 1,390 Cr, buoyed by a strong push by its loans against securities offering.

Groww also announced that State Street Investment (SSIM), which is the fourth largest asset manager globally with an AUM of $5.5 Tn as of September 2025, will invest INR 580 Cr in its AMC arm Groww AMC for a 23% stake. While it would invest INR 381.3 Cr via a secondary transaction, Groww AMC will issue SSIM fresh shares worth INR 198.7 Cr.

Groww said that the AMC business stood at an inflection point at the end of the quarter, with an AUM of IN 4,118.8 Cr and 12 Lakh unique investors. With the strong growth in the Indian market, the company said it was important to choose a global partner with well-established scale and credibility. 

“This strategic relationship with SSIM allows Groww to access knowledge regarding quantitative and passive investment strategies whilst strengthening our balance sheet to enable us to pursue the next phase of growth and expansion,” it noted.

Shares of Groww ended today’s trading session 0.55% higher at INR 163.6 on the BSE.