Groww posts 12% Q2 profit growth amid dip in revenue and trading volumes

Groww's first quarterly results as a listed company show a 12 per cent rise in profit despite a revenue drop, as tighter derivatives rules weigh on volumes

Billionbrains Garage Ventures (Groww) posted a 12 per cent year-on-year increase in consolidated net profit to Rs 471.3 crore for the quarter ended September 2025 (Q2FY26), even as operating revenue declined 9.5 per cent to Rs 1,019 crore from Rs 1,125 crore a year earlier. Operating profit fell 13 per cent to Rs 624 crore.

 

Why did Groww’s revenue decline in Q2?

 

A tighter derivatives framework has reduced trading volumes, weighing on Groww’s topline. Still, the platform’s active users rose 27 per cent Y-o-Y to 14.8 million in Q2FY26.

 

Derivatives trading accounted for 57 per cent of the company’s income, followed by cash trading (19 per cent) and float income (7 per cent).

 

How did regulatory changes affect trading behaviour?

 

In its investor presentation, Groww said derivatives revenue was impacted by lower revenue per order due to the true-to-label circular, while revenue per order in the cash segment improved on the back of higher average order values and price hikes.

 

What does Groww say about its cost structure and profitability?

 

The company noted that its business model operates like a software platform, with over 90 per cent of costs being non-direct in nature. As a result, incremental revenue largely flows through to the bottom line. “Whenever our revenue growth outpaces costs, our leverage improves, leading to higher profitability,” it said.

 

How did Groww’s stock perform post listing?

 

This was the company’s first public results announcement since its stock market debut earlier this month. Groww shares gained nearly 1 per cent to Rs 158, valuing the firm at Rs 97,500 crore. Shares of the Peak XV-backed firm have come off 18 per cent from their peak but are still up 58 per cent from its IPO price.