Billionbrains Garage Ventures, the owner of Groww, reported a 94% jump in quarterly profit to ₹735 crore, driven by a 66% rise in revenue. The company is actively diversifying its income by increasing focus on commodity trading and its margin trading facility to reduce dependence on equity derivatives.
Billionbrains Garage Ventures Ltd, the company behind the investment platform Groww, recorded a strong performance for the first quarter of fiscal year 2027. The company’s consolidated net profit reached ₹735 crore, marking a 94% increase compared to ₹378 crore in the same period last year. Revenue from operations also saw a significant rise, growing 66% year-on-year to ₹1,501 crore.
Strategic Revenue Diversification
A notable shift in the company’s business model is the effort to reduce reliance on income from equity derivatives. While equity derivatives remain a large part of the income, their share has decreased to 52% of total revenue. To offset this, the company has seen higher contributions from its Margin Trading Facility, or MTF, and commodity derivatives. The MTF business allows investors to buy stocks by paying only a fraction of the value, with the platform lending the remaining amount. By growing these segments, the company aims to balance its revenue against the volatility often found in pure equity derivative trading.
User Growth and Market Position
Despite a general industry trend where some competitors have seen a decline in active users, Groww reported adding 115,000 net active clients on the National Stock Exchange during the quarter. The platform now serves 2.2 crore transacting users, which is a 24% increase from the previous year. Assets under management held by customers grew by 38% to reach ₹3.6 lakh crore. The company currently maintains a 14.1% market share in mutual fund SIP inflows and a 15.1% share in stock trading volume, known as Average Daily Turnover.
Operational Efficiency and Future Strategy
The company’s profit after tax margin stood at 47.5%, reflecting an improvement of 7.6 percentage points over the previous year. This efficiency is partly due to operational leverage, where the company’s fixed costs do not rise as quickly as its revenue. On the risk front, the company stated it has implemented stricter limits for margin trading and intraday transactions following market volatility observed in the previous quarter.
Groww is also expanding its asset management business, Groww AMC, which grew its assets under management by approximately 140% year-on-year to ₹5,491 crore. The company has announced plans to invest in artificial intelligence to improve customer service. Additionally, a recent investment from State Street Global Advisors in Groww AMC is intended to support the creation of new mutual fund and exchange-traded fund products. Investors will likely track the growth of the MTF loan book and the integration of these new AI investments in upcoming quarters.