Groww shares gain 8% on strong Q1 earnings, net profit jumps 94% to Rs 735 crore

Shares of Billionbrains Garage Ventures, the parent company of broking platform Groww, surged nearly 8% to an intraday high of Rs 219 on the BSE after the company reported strong Q1 FY27 earnings. The company posted a consolidated net profit of Rs 735 crore for the quarter, up 94.44% from Rs 378 crore in the corresponding quarter last year.

EBITDA for the quarter under review came in at Rs 971 crore, up 101% from Rs 483 crore in the year ago period. Sequentially, the increase was relatively modest, up 3% from Rs Rs 939 crore, Groww’s investor presentation showed.

Also Read | Landmark Cars shares rally upto 13% post Q1 business update, revenue jumps over 22%

Groww’s revenue from operations also witnessed a sharp uptick, rising 66% to Rs 1,504 crore from Rs 904 crore in the corresponding quarter of the previous financial year. Net profit for the quarter grew by 7% to Rs 735 crore from Rs 686 crore last year.

The company said that the consolidated total income grew 63.3% year-on-year in the June quarter, driven by continued traction in newer products such as MTF and commodity derivatives.

In the stock broking business, the company said that risk control measures led to its retail ADTO market share easing sequentially to 15.1%, although it remained 3.3 percentage points higher year-on-year. In commodity derivatives, it expanded its retail market share to 28.6% in notional ADTO across MCX and NSE.

In mutual funds, it retained its position as India's largest distribution platform for direct mutual funds, with Rs 1.9 lakh crore in direct mutual fund assets under management (AUM). SIP inflows grew 32% year-on-year, outpacing the industry's 16% growth.

The company said it remains focused on leveraging AI across the organisation and now offers an AI-powered mutual fund advisory product ‘MF Prime’, for users who want additional guidance to manage their MF portfolio.

The company added that while it plans to make significant investments in AI, it does not expect these investments to have a material impact on its margins given its scale.

The company said it strengthened its market leadership across key segments during the June quarter by adding 115,000 net clients, supported by higher customer retention and improved product quality despite an industry-wide slowdown.

Also Read | Bitcoin climbs to $64,700 as softer US inflation eases US Fed rate hike concerns

At present, the company has 4,35,000 commodity derivatives active users on Groww platform which is up 10.7% on QoQ basis, implying an attach rate of 2.6% in overall active users.

In the current calendar year so far, the stock went up 36.11% and in the last six months, it gained 28.74%.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)