Billionbrains Garage Ventures, the parent company of stockbroking platform Groww, reported a 54 per cent year-on-year (y-o-y) rise in consolidated net profit to ₹725 crore in the September quarter of FY27, despite regulatory changes affecting derivatives trading volumes across the broking industry.
The Bengaluru-based wealth-tech firm had posted a net profit of ₹471 crore in the corresponding quarter last fiscal. Revenue from operations rose 44 per cent y-o-y to ₹1,541 crore in Q2 FY27, compared with ₹1,071 crore a year earlier.
The profit growth comes amid the impact of the Securities and Exchange Board of India’s (SEBI) move to introduce a Closing Auction Session (CAS), which has affected derivatives trading activity across brokers. Groww reported a net profit of ₹735 crore in the June quarter of FY27.
Groww has been working to reduce its dependence on equity derivatives by expanding its presence across other business segments, including commodities trading and its margin trading facility (MTF).
The contribution of equity derivatives to overall revenue declined to 44.8 per cent in Q2 FY27 from 56.9 per cent in the year-ago quarter. Meanwhile, commodities trading accounted for 6.2 per cent of revenue, up from 0.2 per cent a year earlier, while MTF’s contribution increased to 10.1 per cent from 7.4 per cent.
“While the share of equity derivatives in total income declined 12 per cent y-o-y, driven by market adjustments to CAS, we believe this will recover once the recommendations from SEBI’s consultation paper go into effect,” the company said in a shareholder letter.
Market share gains
Groww continued to gain market share across key product segments despite the broader industry slowdown. Its market share in mutual funds increased to 14.8 per cent in Q2 FY27 from 13.1 per cent a year earlier, while its share in equity derivatives rose to 11% from 8.6 per cent.
In the MTF segment, its market share expanded to 2.7 per cent from 1.6 per cent over the same period.
The platform’s total transacting users reached 2.4 crore, while customer assets grew 46 per cent y-o-y to ₹3.9 lakh crore.
Groww’s systematic investment plan (SIP) inflows rose 27.5 per cent to ₹14,347 crore during the quarter, compared with ₹11,254 crore in the year-ago period. Its asset management business also continued to expand, with Groww AMC’s assets under management increasing 145 per cent y-o-y to ₹7,179 crore from ₹2,928 crore.