Billionbrains Garage Ventures, operating as Groww, reported a nearly double net profit of ₹735 crore for Q1FY27. Revenue reached ₹1,500 crore as the platform successfully diversified beyond equity derivatives. Investors are balancing this strong growth against a high valuation, as the stock trades at approximately 33 times its estimated FY28 earnings.
Billionbrains Garage Ventures Ltd, known as the wealth management platform Groww, recorded a strong first quarter for the 2027 fiscal year. The company reported a net profit of ₹735 crore, almost doubling compared to the same period last year. Revenue rose by 66% to reach ₹1,500 crore, reflecting the company's shift from a discount brokerage toward a broader financial services model.
Business Diversification and Revenue Mix
Groww is actively reducing its reliance on equity derivatives, which historically provided the bulk of its income. While derivatives still account for 52% of total revenue, this is down from 56% a year ago. To offset this, the company has grown its newer business lines. The Margin Trading Facility now generates 8% of total revenue, significantly higher than the 3% recorded last year. Furthermore, commodity derivatives, a relatively new addition to the platform, have grown to contribute nearly 5% of revenue.
Management noted that the company’s focus on diversification is a response to both competitive pressures and regulatory changes affecting retail participation in equity derivatives. While the core derivatives business saw a 4% sequential revenue decline in Q1 due to lower market volatility, Groww increased its total market share in this segment to 11%, up from 7.2% a year earlier. Meanwhile, revenue from the stock segment remained stable at approximately ₹250 crore.
Client Base and Asset Growth
In a period where the broader Indian brokerage industry saw a decline in active users, Groww reported growth. The company added 115,000 net active clients on the National Stock Exchange during the quarter, bringing its total base to 22 million transacting users. The firm continues to lead as a distributor of direct mutual funds, with ₹1.9 trillion in assets. Its asset management arm, Groww AMC, also posted strong performance with assets under management rising 140% over the past year to ₹5,491 crore.
Valuation and Strategic Outlook
Despite these growth metrics, the company's valuation remains a point of focus for investors. With the stock price rising 65% over the past year, it is currently trading at approximately 33 times estimated FY28 earnings. This valuation suggests that the market has high expectations for the company's future execution. Furthermore, the company is still in the early stages of scaling its wealth management arm, Fisdom, which reported an operating loss of ₹11 crore for the quarter. Looking ahead, investors will monitor the impact of the company's new AI-powered advisory service, Groww Prime, and the potential strategic investment from State Street Global Advisors as catalysts for further growth.