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Groww gained more than 6% after the company delivered a decent quarter. Net profit nearly doubled as its newer businesses picked up the slack from slowing trading activity.
By the numbers:
- Revenue: ₹1,501 crore, up 35% YoY
- Net profit: ₹735 crore, up 94% YoY
- EBITDA margin: 64.6%
What worked: the biggest story this quarter wasn't just higher profits, but where those profits came from.
Groww has been steadily reducing its dependence on equity derivatives, which still account for about half of its revenue. At the same time, newer businesses like Margin Trading Facility (MTF), commodity trading, loans against securities (LAS) and asset management are growing rapidly and contributing a bigger share of its business.
Meanwhile, commodity trading, a business it entered less than a year ago, has already captured 29% market share.
Even though cash market share dipped slightly because of tighter risk norms, the company added 1.15 lakh active NSE clients. The overall industry lost around 2.6 lakh active investors. Lower operating costs also helped expand margins despite continued investments in AI.
Zoom out: India's retail investing boom is still in its early innings. The country has over 220 million demat accounts, up from just 41 million five years ago.
Mutual fund assets have crossed ₹75 lakh crore, while monthly SIP inflows continue to hover around record highs.
But growth is becoming more competitive as F&O regulations and slower trading activity are on a rise. This is why brokerages are expanding into lending, wealth management, commodities and asset management to build more stable, long-term revenue streams.
