Groww reports Q3 profit of Rs 547 Cr, revenue of Rs 1,216 Cr
Groww’s Q3 profit fell on a one-off base effect, but revenue jumped 25% as broking share, SIP inflows and margin trading surged.
Stockbroking platform Groww reported a 27.8% decline in quarterly profit, dragged down by a high base effect from a one-time incentive reversal a year earlier, even as the fintech firm’s top-line revenue surged nearly 25%.
The online investment platform posted a profit after tax (PAT) of Rs 546.93 crore for Q3 FY26, down from Rs 757.11 crore in the same period a year ago, according to its financial statements.
While the bottom line appeared weaker year-on-year, the decline was primarily technical. Profitability in the comparable quarter of the previous year (Q3 FY25) had been unusually inflated by negative expenses of Rs 17.72 crore.
This anomaly was caused by the cancellation of a management Long Term Incentive (LTI) plan, which triggered a reversal of accrued costs totalling Rs 424.67 crore during that period. Expenses for the latest quarter stood at Rs 515.55 crore.
Stripping away the accounting adjustments from the previous year, Groww’s core operating momentum remained strong. Revenue from operations climbed 24.8% to Rs 1,216.07 crore, up from Rs 974.53 crore a year earlier.
Notably, State Street Global Advisors Inc. has agreed to invest up to Rs 580 crore in the asset management arm of Groww.
The deal, disclosed in a regulatory filing on Wednesday, will see the Boston-based asset manager acquire a stake of up to 23% in Groww Asset Management Ltd. Despite the significant equity infusion, State Street’s voting power will be capped at 4.99% under the terms of the agreement.
Groww's Retail cash equity activity increased from Rs 9,394 crore in Q3 FY25 to Rs 11,331 crore in Q3 FY26, helping the company expand its broking market share from 21.6% to 28.8%.
Mutual fund SIP inflows also moved higher during the quarter, rising from Rs 9,476 crore in Q3 FY25 to Rs 12,328 crore in Q3 FY26, reflecting continued traction on the platform.
The margin trading book saw a sharp jump, growing from Rs 542 crore in Q3 FY25 to Rs 2,307 crore in Q3 FY26. While the base remains relatively small, Groww’s market share in this segment nearly tripled from 0.7% to 2%.
On the credit side, Groww CreditServ's NBFC loan book grew 7% to Rs 1,390 crore on a QoQ basis. The loan book of loans against securities also doubled in this quarter, according to the company.
Edited by Suman Singh