Groww posts double-digit profit growth as broker gains market share in Q2
Groww's net profit increased 12.18% from a year earlier to Rs 471.33 crore in Q2 FY26, while operating revenue fell 9.4% to Rs 1,018.74 crore.
Stock broking platform Groww reported a 12% year-on-year jump in quarterly profit even as revenue fell, defying an industrywide slump in retail trading activity. Groww’s earnings were also its first financial disclosure since its blockbuster listing earlier this week.
Profit after tax increased to Rs 471.33 crore in Q2 FY26 from Rs 420.1 crore a year earlier, while operating revenue fell 9.4% YoY to Rs 1,018.74 crore during the quarter.
However, the profit looks higher because the stockbroker incurred a big one-time expense that was later reversed. If you remove that adjustment, this quarter’s profit would actually be down about 12–13%, broadly matching the 9% drop in revenue.
However, expenses dropped even more steeply, declining 26.65% YoY to Rs 432.59 crore, lifting EBITDA to Rs 638.19 crore, up 11.92% from the year-ago period. The sharp cut in expenses can be primarily attributed to employee benefit expenses halving year-on-year, from Rs 264.2 crore in Q2 of the previous fiscal year to Rs 123.7 crore now.
Revenue decline comes against the backdrop of a shrinking industry pool, with NSE active users dropping from 50.2 million in January 2025 to 45.3 million by Q2 FY26. Groww says the slump has already bottomed out, noting a pickup in October and calling the period an inflection point for user activity.
The platform ended the quarter with 19 million transacting users, a 27% increase from a year earlier. Customer assets grew 33% to Rs 2.7 lakh crore, supported by sustained flows across products. Mutual fund assets under management rose 45% to more than Rs 1.4 lakh crore, while equities AUM increased 22% to Rs 1.176 lakh crore.
Groww’s share of NSE active clients inched up from 25.6% to 26.3% during the period. Average daily turnover in the cash segment rose from 17.7% to 25.8%, and derivatives turnover increased from 10.7% to 17%.
Groww reported its first quarterly results since its public-market debut on Wednesday, when the stock closed 31% higher at Rs 130.94 on the BSE and Rs 128.85 on the NSE, compared with its issue price of Rs 100. As of 12:44 pm on November 21, the shares were trading at Rs 165.15 apiece.
The listing was one of the strongest fintech market debuts in recent years, reflecting investor demand for profitable, technology-led retail investing platforms. The company raised Rs 6,632 crore in the IPO, which drew bids 17.6 times the shares on offer.
Its market cap had crossed the $12 billion (Rs 1,07,895 crore) valuation this week.
(The copy was updated with a clarification.)
Edited by Kanishk Singh