Groww Q2 FY27 results: profit up 54% to ₹725 crore as F&O share falls

FintechLovish MadaanOct 17, 20268 min read

Groww’s parent company, Billionbrains Garage Ventures, reported a consolidated profit after tax of ₹725 crore for the July–September 2026 quarter, up 54% from ₹471 crore a year earlier, according to its Q2 FY27 shareholders’ letter filed on 14 October 2026. Revenue from operations rose about 47% to ₹1,501.53 crore, but both lines were flat to slightly down against the June quarter as a new SEBI trading rule cut into futures and options (F&O) volumes.

The quarter shows a broker that is still growing fast year on year while quietly reducing how much it depends on equity derivatives. Here is what the filing and the market coverage say. (One crore is 10 million; one lakh is 100,000.)

Key takeaways

• Profit after tax was ₹725 crore, up 54% year on year but down from ₹735 crore in Q1 FY27, per the shareholders’ letter.
• Equity derivatives fell to 44.8% of total income from 56.9% a year earlier; margin trading and commodity derivatives made up much of the gap.
• The margin trading facility (MTF) book grew to ₹4,351 crore from ₹1,668 crore, and total customer assets reached ₹3.9 lakh crore.
• The stock barely moved on results day, trading around ₹193–195 against a ₹100 IPO price.

Groww Q2 FY27 results at a glance

Scroll the table sideways →

Total income, EBITDA, profit, users and assets come from the company’s letter; the revenue-from-operations figures are as reported by Upstox. The company said consolidated expenses rose 29% year on year and the profit margin reached 47%, up 3 percentage points. Goodreturns put the EBITDA margin at 64.5%, up from 63.9% in the June quarter.

Against Q1 FY27, the picture is flatter. In July, Groww reported profit of ₹735 crore on revenue of ₹1,501.42 crore, according to Kotak Neo, so the September quarter was roughly level on revenue and about 1% lower on profit.

Users and customer assets

Groww counted 2.4 crore total transacting users at the end of September, up 27% year on year, and added 11 lakh new transacting users in the quarter, according to its letter. It credited a busy IPO market: about 42 lakh users applied for equity IPOs through the app, giving Groww a 22% share of total allotments. Note that the company’s user metrics are not de-duplicated across its three apps (Groww, Fisdom and W).

Total customer assets on the platform rose 46% to ₹3.9 lakh crore. Market share also moved up in most products. Its share of mutual fund SIP inflows rose to 14.8% from 13.1%, with SIP inflows of ₹14,347 crore in the quarter. Its retail share of cash-stock turnover rose to 15.4% from 12.9%. In equity derivatives, measured by premium turnover, its retail share went to 11.0% from 8.6%.

Segments: derivatives shrink, margin trading and commodities grow

The most important shift is in where Groww earns its money. Equity derivatives were 44.8% of total income in Q2 FY27, against 56.9% a year earlier, according to the shareholders’ letter. Commodity derivatives rose to 6.2% from 0.2%, and MTF rose to 10.1%, about 5.5 percentage points higher year on year.

Margin trading facility

MTF lets investors buy shares with part of the purchase funded by the broker, who earns interest on the loan. Groww’s MTF book stood at ₹4,351 crore at the end of the quarter, up from ₹1,668 crore a year earlier, with market share rising to 2.7% from 1.6%. The company said it put ₹1,915 crore of cash into its MTF, personal loan and loan-against-securities books during the first half, while also receiving a ₹580 crore investment from State Street Global Advisors. Its cash balance moved from ₹3,893 crore to ₹3,849 crore over the half.

Lending revenue carries credit risk that broking fees do not. The company said it expects products that are not yet fully penetrated, such as MTF and commodity derivatives, to keep contributing more in coming quarters.

Wealth and asset management

Groww said its wealth assets crossed ₹10,000 crore and that it completed the integration of Fisdom, the wealth platform it acquired, during the quarter. Groww Asset Management’s AUM grew 145% to ₹7,179 crore, with actively managed funds rising to 57% of AUM from 47%. AMC revenue rose 131%, but the unit still posted a loss of ₹8.3 crore, according to the letter.

Why derivatives revenue fell: SEBI’s closing auction

From 3 August 2026, SEBI introduced a Closing Auction Session (CAS) for F&O stocks, a 20-minute auction from 3:15 pm to 3:35 pm that sets the closing price instead of the earlier volume-weighted average price method, as Angel One explained before launch. Groww said a gap between the auction’s reference price and its equilibrium price during the early weeks reduced trading volumes across the industry. Its equity derivatives revenue fell 14.3% from the June quarter, which the company said was in line with the industry decline.

SEBI chairman Tuhin Kanta Pandey said in August that the auction would continue and that the regulator would consider industry feedback, according to News On Air. Groww said a SEBI consultation paper proposes to delink derivatives settlement from the CAS closing price and that, if implemented, this should help trading normalise. That is the company’s view; the final rules are not yet out.

Costs: where the money went

Excluding the AMC, Groww’s own cost breakdown shows its margin gain came from spending less on growth. Cost to grow, mostly marketing, fell to ₹105 crore (7.0% of revenue) from ₹123 crore (12.1%) a year earlier. Cost to serve rose to ₹206 crore (13.8%) from ₹124 crore (12.2%), and cost to operate rose to ₹202 crore from ₹148 crore, per the letter.

The company linked the higher serving costs to more trading days, inflation in compute costs “due to AI and other factors”, and a one-time ₹13 crore reimbursement to clients after an operational issue at a third-party market infrastructure institution. It said it expects the compute-cost inflation to stay in its baseline, and it plans about ₹28 crore more in CSR spending in the second half.

How the share price reacted

The market response was muted. Billionbrains Garage Ventures shares were down about 0.5% at ₹193 on the BSE in early trade on 14 October, according to Kotak Neo. By 1:13 pm they traded at ₹195.39 on the NSE, up 0.74%, giving a market value of about ₹1,22,492 crore, according to Upstox, which also noted the stock was up about 25% for the year but below its 52-week high of ₹227.20 from 29 April. On 15 October the stock opened at ₹192.60, Goodreturns reported.

For context, Groww listed in November 2025 at ₹114 on the BSE and ₹112 on the NSE against a ₹100 issue price, after a ₹6,632 crore IPO, according to Entrackr. After its Q1 results in July, the stock rose about 4.7% to ₹213.39 on the day, per Kotak Neo, so the quieter reaction this time suggests investors had already expected strong year-on-year growth and were watching the flat sequential numbers. That is our reading, not a reported fact.

This article is news analysis, not investment advice. Speak to a SEBI-registered investment adviser before making any investment decision.

What it signals for listed new-age fintech

Groww’s quarter carries three lessons for India’s listed consumer fintech companies. First, profit at scale is possible: a 47% profit margin on ₹1,500 crore of quarterly revenue is a long way from the loss-making debuts of earlier new-age listings. Second, regulation can move revenue fast. One SEBI market-structure change knocked 14% off Groww’s largest revenue line in a single quarter, which is why diversification into lending, commodities and wealth matters. Third, diversification brings new risks: an MTF book that has more than doubled in a year ties more of the business to credit quality and market swings, as TradingView’s coverage of the revenue mix also highlights.

For founders building in wealth-tech, the takeaway is that distribution through a large app base, here 2.4 crore transacting users, lets a company launch adjacent products cheaply. Groww’s falling cost to grow is the clearest evidence of that.

Bottom line

Groww’s Q2 FY27 numbers are strong year on year and flat quarter on quarter. The company is growing out of its reliance on F&O, but lending and wealth are still smaller and newer. The next test is whether derivatives volumes recover once SEBI finalises the closing-auction rules. You can follow open roles at the company on our Groww jobs page, track fintech deals on the funding tracker, and read more market coverage in news.

FAQ

How much profit did Groww make in Q2 FY27?

Consolidated profit after tax was ₹725 crore for the quarter ended 30 September 2026, up 54% from ₹471 crore a year earlier, per the company’s shareholders’ letter.

What is Billionbrains Garage Ventures?

It is the listed parent company of Groww. Its shares trade on the NSE and BSE.

Why did Groww’s F&O revenue fall?

The company said SEBI’s Closing Auction Session for F&O stocks, introduced on 3 August 2026, reduced industry trading volumes. Its equity derivatives revenue fell 14.3% from the June quarter.

How big is Groww’s margin trading book?

The MTF book was ₹4,351 crore at the end of September 2026, up from ₹1,668 crore a year earlier.

How did Groww shares react to the results?

Only slightly. Shares traded between about ₹193 and ₹195 on results day, according to Kotak Neo and Upstox.

Sources

1. Groww (Billionbrains Garage Ventures), "Shareholders’ Letter – Q2 FY27", 14 October 2026
2. Upstox, "Billionbrains Garage Ventures Q2 results: Groww operator’s profit rises 54% YoY to ₹726 crore, revenue up 47%", 14 October 2026
3. Kotak Neo, "Groww Q2 FY27 Results: Profit Jumps 54% To Nearly ₹726 Crore, Revenue Rises 47% As Shares Dip", 14 October 2026
4. Goodreturns, "Groww Share Price Today Advances As Billionbrains Garage Reports 54% Q2 Profit", 15 October 2026
5. TradingView, "Groww Q2 profit rises 54% to ₹725 crore as revenue mix diversifies", 14 October 2026
6. Kotak Neo, "Groww Q1 FY27 Results: Net profit jumps 94% to ₹735 crore", 15 July 2026
7. Entrackr, "Groww’s IPO debuts with 14% listing gain", 12 November 2025
8. Angel One, "SEBI Closing Auction Session from August 3, 2026: New Timings and Rules for F&O Stocks", 30 July 2026
9. News On Air, "SEBI Chairman says Closing Auction Session to be continued", 17 August 2026

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