Groww Q2 results: MTF book grows to ₹1,668 crore; check top business highlights

Groww's parent firm, Billionbrains Garage Ventures, reported a 12% rise in its consolidated net profit to ₹471 crore for the second quarter of the fiscal year (Q2 FY26) on Friday, November 21, as compared to ₹420 crore reported in the same period of the previous fiscal year.

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 logged 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% seen 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.

Groww Q2: Here are key business highlights

• "Our growth is a function of two factors – firstly, active users, which is a result of new acquisitions done in this quarter, and the customers retained from existing customers. Secondly, existing customers’ activity on our platform, which is a function of penetration in existing and new products and user maturity in terms of growth in activity," Groww said in an investor presentation.

• Groww's active users rose 3.2% quarter on quarter (QoQ), led by growth in new user acquisition; it saw a higher number of users engaged across multiple products with higher user activity.

• Groww mentioned that exchange-traded funds (ETFs) and initial public offerings (IPOs) are emerging as meaningful touchpoints. In the September quarter, ETF-first users rose sixfold year-on-year to 6%, while IPO-first users doubled to 6%. Mutual fund SIP-first sign-ups increased to 36%, up seven percentage points, even as stock-first onboarding declined to 37%, down 15 percentage points from a year ago.

• The company’s recently launched margin trading facility (MTF) continues to scale rapidly. Since its launch in April 2024, the MTF book has risen to ₹1,668.3 crore and now serves about 78,000 active users, representing 0.7% penetration of Groww’s 10.65 million stock investors, Groww noted.

• Groww also reported improving monetisation metrics, with revenue per broking order rising from ₹18 to ₹19.8 at the end of the September quarter. The upmove came on the back of a 66% increase in average equity order value to ₹59,079, coupled with pricing revisions. However, derivative orders yielded softened due to the SEBI true-to-label circular, the company said in the investor presentation.

How Groww shares are performing

Following the earnings announcement, Groww shares jumped nearly 8% from the day’s low to hit an intraday high of ₹168.39.