Synopsis
Billionbrains Garage Ventures, operating Groww, saw operating revenue surge 87% to Rs 1,505 crore in the March quarter of FY26. Full-year revenue reached Rs 4,644 crore. Net profit more than doubled to Rs 686 crore in the quarter. The company invested Rs 961 crore to acquire wealthtech startup Fisdom, bolstering its wealth management offerings.Listen to this article in summarized format
Net profit for the quarter more than doubled to Rs 686 crore from Rs 309 crore a year ago, mainly driven by a tighter lid on expenses at the Bengaluru-based fintech.
New lines of business
Speaking with stock market analysts after the results, chief executive Lalit Keshre said the company is investing in AI with a focus on building new products faster with a lean team, instead of scaling up hiring significantly.
Sharing the split in its revenue sources, the company said 55% of revenues came from equity derivatives, 12% from lending, and around 20% from stocks and commodity derivatives.
“Newly launched product segments, namely Margin Trading Facility (MTF) and commodities, saw their share increase meaningfully, driven by higher penetration,” the company said in a statement.
Focus on costs
Among major cost items, Groww’s employee expenses grew 44% year-on-year (YoY) to Rs 173 crore in the March quarter. Other expenses, which typically include marketing costs, rose 34% to Rs 393 crore from Rs 292 crore a year earlier.
Overall expenses increased to Rs 599 crore compared with Rs 435 crore a year prior, up 37%.
However, during the analyst call, the company indicated that investments in AI and other technology-led initiatives could push up costs going forward. The company is also hiring for W, its wealth management business.
Investments
Of the total IPO proceeds of Rs 1,016 crore, besides other heads, the company said it has spent Rs 104 crore on marketing and brand building till March 2026.
The firm has also invested Rs 850 crore to fund its margin trading business and capitalise its subsidiary, Groww Invest Tech. Further, Groww disclosed it has invested Rs 961 crore to acquire the wealthtech startup Fisdom, through which it has doubled down on the wealth management business. These investments are not from the IPO proceeds.
Corporate moves
The company also said that Ashish Agrawal, former managing director at Peak XV Partners, has stepped down as nominee director on its board. He was one of the earliest investors in Groww and worked closely with the company until it went public last year. Agrawal had earlier this year announced his exit from Peak XV Partners; he plans to start his own fund.
Additionally, Groww said Fisdom, which it acquired last year, reported a net loss of Rs 10.2 crore, while Groww Mutual Fund, its AMC business, reported a loss of Rs 21.4 crore. The management expects Fisdom to turn profitable by FY28, while the AMC business is likely to break even only once the AUM (assets under management) grows five to six times, which may take a few years.
Growth during difficult times
In a letter to shareholders, Groww said it has around 21.6 million registered users, of which 16.7 million are active, reflecting a 25% YoY increase. Total assets on the platform stood at Rs 3 lakh crore, up 36% on-year albeit down 1% sequentially.
While the overall number of active traders in the stock market has plateaued at around 45 million, Groww says it has continued to grow its user base by attracting users from competing platforms.
Commenting on the broader slowdown in Indian equities, chief financial officer Ishaan Bansal said that continuing FII outflows have weighed on the markets, and it may take a few more quarters for sentiment to improve.
Focus on lending
For Groww, a significant growth driver has been its MTF book, which expanded to Rs 2,814 crore in the March quarter from Rs 601 crore a year earlier.
The consumer lending business contributed 4.1% to net profits during the quarter. The company said it expects this to increase as the loan book scales and underwriting strengthens.
Out of the profits generated this quarter, the firm is investing Rs 506 crore in MTF and Rs 105 crore in the consumer lending business.
