Shares of , the parent company of Groww, were in focus after Motilal Oswal initiated coverage with a buy rating and a target price of ₹185, implying an upside of about 19 per cent from the previous close of ₹155.53.
The stock soared 2.6 per cent to ₹159.70 on the NSE before settling flat at ₹155.31.
Motilal Oswal said Groww has rapidly scaled to become India’s largest retail broking platform on the NSE in terms of active clients within nearly four years of launch. The brokerage highlighted that Groww commanded a market share of around 26.8 per cent as of November 2025, significantly ahead of its closest peer.
What began as a niche zero-commission mutual fund distributor has now evolved into a full-stack investment platform spanning equity broking, derivatives, commodities, mutual funds, credit and wealth management.
Motilal Oswal noted that Groww’s revenue trajectory has been strong, with revenues surging nearly threefold between FY23 and FY25, driven by higher customer engagement, rising affluent users and increasing cross-sell of products.
The brokerage expects this momentum to continue, projecting revenues to double over FY25–28, supported by rapid expansion in margin funding, commodities and credit, alongside a gradual build-up of wealth management offerings.
As the business mix diversifies, the contribution of broking revenue is expected to decline from about 85 per cent in FY25 to nearly 67 per cent by FY28, according to Motilal.
The report also underlined Groww’s cost-efficient, technology-led operating model. More than 80 per cent of customer acquisition is organic, which keeps customer acquisition costs low and payback periods short.
With incremental revenues scaling faster than fixed costs, Motilal Oswal expects EBITDA margins to expand from about 59 per cent in FY25 to around 66 per cent by FY28.
The brokerage forecasts a strong earnings compounding profile, with EBITDA and PAT expected to grow at roughly 25–30 per cent CAGR over the next three years.
Despite regulatory action in the current financial year, Motilal Oswal believes Groww remains well placed to deliver earnings growth of about 10 per cent in FY26, followed by a sharper rebound in FY27 and FY28.
It added that rising cash yields, higher minimum brokerage charges and a growing affluent customer base should support monetisation, while the company’s founders-first and customer-centric approach continues to differentiate it from peers.
Earlier, global brokerage Jefferies had initiated while JM Financial assigned a sell call, stating that the stock is expensive for what is still predominantly a broking-led business.