Groww Q2 earnings: Net profit rises 12% YoY, revenue drops to ₹1,019 crore; total income slides 8%

The recently listed company reported a 9.4% year-on-year decline in revenue from operations, which fell to ₹1,019 crore in the July–September quarter from ₹1,125 crore in Q2 FY25. However, on a quarter-on-quarter basis, revenue rose 13%, driven by an increase in active users following new customer acquisitions during the period.

Additionally, higher engagement from existing customers—supported by deeper penetration of existing and new products, along with improved user maturity—also contributed to the revenue growth. Further, in Q2 FY26, 4.5% of the 13% incremental revenue growth was contributed by newly acquired users, with the rest coming from existing users.

Its operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), surged 10% to ₹604 crore as against ₹550 crore in the corresponding period last year. Its EBITDA margin also expanded to 59.29%, in contrast to 48.88% in the year-ago period.

The company’s net income slid 7.7% to ₹1,071 crore in the reporting quarter from ₹1,160 crore YoY.

For half a year (H1 FY26), Groww’s net profit rose 12% to ₹850 crore as compared to ₹758 crore on a YoY basis. Its revenue from operations for H1 FY26 stood at ₹1,923 crore as against ₹2,126 crore in H1 FY25, marking a growth of 10%.

The stockbroker firm's total transacting users rose 5% sequentially and 27% YoY to 19 million. Its total customer assets increased 2% QoQ and 33% YoY to ₹2.7 lakh crore.

In Q2 FY26, 36% of Groww’s new users started with mutual fund SIPs, up 7 percentage points from last year. Stocks-first users stood at 37%, down 15 points year-on-year. ETF-first users rose to 6%, six times higher than last year, while IPO-first users, including equities and bonds, also reached 6%, doubling from a year ago.

High-growth products contributed a larger share of Groww’s revenue, with stocks and the margin trading facility each rising by 4 percentage points year-on-year, and interest-based income (driven by LAS) increasing by 2 points. This helped the company reduce its dependence on derivatives, whose share fell by 10 percentage points over the same period.

In a statement, Groww said that its recently acquired platform, Fisdom, is expected to contribute an additional 3–4% to revenue from operations at its current run rate. The company also noted that more customers are increasingly using products such as mutual funds, stocks, PL + LAS and MTF, while participation in derivatives has dropped sharply.

Groww said it launched commodities in a phased manner in September 2025 and, by the end of the month, recorded 7,000–8,000 average daily transacting users with 8–10 orders per user per day. In revenue terms, the segment contributed less than 1% of revenue from operations for September.

“Our disbursements in Q2 grew ₹1,444 million, and 36% of this was on account of Loan Against Securities (LAS), which was introduced in this quarter on our own book. We saw 9.8k customers use the product on our platform in this quarter. Personal loans continued to scale at an organic growth rate,” the company said.

Following the earnings, Groww shares were trading at ₹164.74 apiece on NSE, gaining 5.12%.

Groww IPO and listing

Shares of Billionbrains Garage Ventures, the parent company of stockbroker Groww, made a strong debut on November 12. The stock opened at ₹112 on the NSE, marking a 12% premium over its IPO issue price of ₹100, while on the BSE it listed at ₹114, a gain of 14% from the issue price.

The initial share sale was subscribed a total of 17.60 times. It secured bids for 64,187,004,00 shares compared to 36,477,6528 equity shares on offer, as per the stock exchange data.

Groww IPO was a fresh issue of equity shares totalling ₹1,060 crore along with an offer-for-sale, or OFS, component of 55.72 crore shares aggregating to ₹5,572.30 crore.

Before the IPO, Billionbrains Garage Ventures had raised ₹2,984.5 crore from anchor investors, including the Government of Singapore, Abu Dhabi Investment Authority, the Monetary Authority of Singapore, Goldman Sachs, Morgan Stanley, HDFC Mutual Fund (MF), Nippon India MF, Axis MF, Kotak Mahindra MF, SBI MF, Motilal Oswal MF, Aditya Birla Sun Life MF, ICICI Prudential Life Insurance and Mirae Asset.

Groww, a digital investment platform, allows customers to invest in derivatives, stocks, IPOs, bonds, mutual funds, and other products.