Groww's net profit soars 94% in first quarter of FY27

Investment platform Groww reported a 94% rise in net profit for the first quarter of the current fiscal, while revenues rose 66% during this period. This strong performance aided the company's share price to rise by 5%.

Net profit for the first quarter of FY27 was Rs 735 crore, compared to Rs 378 crore in the similar period a year ago. Revenue was Rs 1,501 crore compared to Rs 904 crore a year ago.

The company noted that this performance was supported by focus on product quality, user experience and trust, resulting in better user retention rates than the industry.

In the first quarter, Groww added 1,15,000 net active clients on the NSE, while the overall industry saw a net decline of around 2,57,000 active clients on the NSE.

The company's total transacting user based touched 2.2 crore at the end of the quarter, a 24% year-on-year (YoY) growth. However, the active user base was 1.7 crore.

Groww said addition of new transacting users remained low this quarter due to lower capital markets activity, particularly among IPOs and exchange trade funds.

The total customer assets of Groww at the end of first quarter stood at Rs 3.6 lakh crore, a 38% YoY growth.

The company said its market share had increased across all categories of investment products by the end of the first quarter. The shares were 14.1% in mutual funds, 15.1% in stocks, 11% in derivatives and 2.7% in margin trading facility.

On the role of artificial intelligence, Groww believes AI will fundamentally reshape how the company serves its customers. The company is in the early stages of using AI for functions such as resolving customer queries, research queries, and increasing product velocity.

“While we will make significant investments in AI, given our scale, we do not expect any material impact on our margins,” it noted.