Groww Q2 Results: Profit Jumps to INR 471 Cr Despite of approx 10% Revenue Decline
Introduction
Billionbrains Garage Venture, the parent company of Groww, declared a 12% jump in its profit for the September 2025 quarter. With this, the revenue appeared to have a slight decline, but an increase in active users. Moreover, the organisation experienced a shift towards Stocks and Mutual Funds with a minimised emphasis on derivatives. Furthermore, the marketing expenditure increased, which impacted the costs of consumer acquisition. The stock positively responded to the outcomes.
Billionbrains Garage Ventures (Groww) posted a Groww profit jumps 12% year-on-year in the consolidated net revenue to Rs. 471.3 cr. for the quarter, which ended on September 2025 Groww Q2 FY26 earnings, even as there was a decline in the operating revenue to around 9.5% to Rs. 1,019 cr. from Rs. 1,125 cr. a year before. Moreover, the operating profit dropped to 13% to Rs. 624 cr.
Reason behind the decline of Groww revenue in Q2
- A stricter derivatives model has minimised the trading volumes, which weigh on the topline of Groww Q2 Results. Still, the active users of the platform increased to 27% every year to around 14.8 million during Q2FY26.
- The derivatives trading accounted for 57% of the organisation’s revenue, followed by float income (7%) and cash trading (19%).
- Furthermore, the marketing expenditure increased, which impacted Groww Customer acquisition costs.
Ways through which the regulatory changes impact the trading behaviour
Within its investor presentation, Groww stated that the derivatives revenue was affected by lower revenue for each order because of the actual-to-the-label round. Whereas, the revenue from each order in the cash division increased on the back of higher price hikes and average order values.
Groww’s perspective regarding its productivity and cost structure
- The organisation observed that its business model executes in the form of a software platform, with approximately 90% of costs being indirect in nature.
- The incremental revenue flows highly via the bottom line.
- The company stated that when their revenue growth outpaces expenses, their leverage increases, resulting in greater productivity.
- Other significant income of the company contributed a supplementary Rs. 52 cr., which in turn fuelled its overall revenue of Rs. 1,071 cr. for the quarter.
Ways in which Groww’s stock perform post listing
- Since its stock market debut earlier this month, this was the organisation’s first public outcomes declaration. Groww share price acquired near about 1% to Rs. 158, valuing the organisation at Rs. 97,500 cr.
- Furthermore, the shares of the Peak XV-backed company have come off 18% from their crest but are still up by 58% from its IPO costs.
- On the expenditure end, employee benefit was considered to be a huge burden that, in turn, accounted for 29% of the overall expenditure. This cost was deducted by approximately 53% to Rs. 124 cr. during Q2 FY26 from Rs. 264 cr. during Q2FY25.
- Along with this, the depreciation cost and finance costs were considered to be the other overheads that added to the overall expenditure, which in turn was minimised by 37% to Rs. 432 cr during Q2 FY26 from Rs. 69 cr. during Q2 FY25.
- The organisation’s Rs. 6,632 cr. IPO contain a fresh issue valued at Rs. 1,060 cr. along with an offer for sale (OFS) of Rs. 5,572 cr.
- Groww stock performance states Groww net profit INR 471 cr. which is an increase during Q2 FY26.
- As per the exchange data, the IPO of Groww was being oversubscribed 17.6 times, with the retail segment subscribed 9.43X, QIBs (excluding anchors) 22.02X, and Non-Institutional Investors (NIIs) 14.2X.
- The share of Groww India is being traded at Rs. 164, which serves the organisation with an overall market cap of Rs. 1,02,166 cr ($11.4 billion).
