Groww's parent, Billionbrains Garage Ventures, reported a 94% year-on-year rise in Q1 net profit to Rs 735 crore, while revenue from operations increased 66% to Rs 1,501 crore.
Commodity derivatives, where Groww has captured a 29% market share, and the Margin Trading Facility (MTF) business drove growth, with MTF contributing 8% of total revenue, up from 3% a year earlier.
Groww added 1.15 lakh NSE active clients during the quarter even as the broader broking industry lost around 2.6 lakh active clients.
Groww's Q1 Profit Jumps 94% as Revenue Crosses Rs 1,500 Crore
Groww reported a 94% jump in Q1 profit to Rs 735 crore as revenue rose 66%, driven by commodity derivatives, MTF growth and expanding market share
Groww
Summary
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Billionbrains Garage Ventures reported a 94 per cent increase in net profit to Rs 735 crore for the quarter ended June 30, 2026. The parent company of Bengaluru-based stockbroker Groww posted a net profit of Rs 378 crore in the corresponding period last year.
Consolidated revenue from operations for the country's largest broking firm by active investors rose 66 per cent to Rs 1,501 crore in the first quarter of the 2026-27 financial year. This compares to Rs 904 crore in the year-ago period.
The positive financial results triggered immediate market action. Groww shares traded nearly 4.5 per cent higher at Rs 213 apiece at 12:25 pm on July 15.
Drivers of Revenue Growth
Rapid growth in the commodity derivatives and Margin Trading Facility (MTF) lending segments aided the revenue surge.
Groww captured a 29 per cent market share in commodity derivatives less than a year after entering the segment.
The MTF division increased its share of total revenue to 8 per cent in Q1FY27. This represents a jump from 3 per cent in the same quarter last year.
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"Our operating leverage played out across all the cost buckets, leading to a PAT margin of 47.5 percent, a Year-on-Year expansion of 7.6 percent.
As a tech-driven organisation, we believe that the operating leverage from economies of scale will continue to play out as we grow," the company stated in its shareholder letter.
Groww has expanded its market share across major segments such as Mutual Funds, stocks, equity derivatives and MTF, the company stated. Groww's Asset Management Company recorded a 140 per cent growth in assets under management over the past year.
Futures and options, or equity derivatives, generated around half of the company's income.
Stock trading contributed over 16 per cent. Other revenue-generating verticals include commodities, float income, MTF, personal loans and Loan Against Securities.
"We expect the trend of revenue diversification away from Equity Derivatives to continue, offsetting the volatility-driven spike that we alluded to last quarter," the firm stated.
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Client Growth Trends
Groww added 1.15 lakh net NSE active clients during the quarter. In contrast, the broader industry recorded a net decline of approximately 2.6 lakh active clients in Q1FY27.
The firm attributed the wider slowdown in consumer interest to reduced capital markets activity. This decline was particularly evident in initial public offerings and exchange-traded funds (ETFs).
Indian equity markets previously witnessed a dramatic rise in gold ETF investors between late last year and the end of the March quarter. Rising gold prices drove this surge.
Gold has since lost almost 28 per cent of its value after hitting highs in January 2026. This drop followed increased volatility from the West Asia war.
Groww is accelerating investments in artificial intelligence, but the company informed it does not expect these investments to impact margins.
"We are in the early stages of using AI in our organisation to resolve customer queries at zero wait time, solve customers’ unique research queries, and increase product velocity," it added.
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