Groww Q3 profit drops 28% YoY to ₹547cr
What's the story
Billionbrains Garage Ventures, the parent company of online investment platform Groww, has reported a 28% year-on-year decline in net profit for the third quarter of FY26. The company's net profit stood at ₹547 crore, compared to ₹757 crore a year earlier. However, on a sequential basis, PAT grew by 16% from ₹471 crore reported in the September quarter (Q2 FY26).
Revenue growth
Total income rises 26% to ₹1,261cr
Groww's total income for the quarter rose by 26% to ₹1,261 crore, up from ₹1,004 crore in the same period last year. The company's adjusted EBITDA also saw an impressive increase of 24% year-on-year and 19% quarter-on-quarter to reach ₹742 crore.
Profit analysis
One-time gain impacts year-on-year profit comparison
The year-on-year decline in reported net profit was due to a one-time post-tax gain of ₹315 crore recorded in Q3 FY25. Excluding this exceptional item, Groww's operating profit after tax increased by an impressive 24% on-year. The company also noted that its transacting user base grew by 25% year-on-year, crossing the 20 million mark while active users grew by 7.5% sequentially.
Market expansion
Groww gains market share in equities and derivatives
Despite an industry-wide slowdown, Groww continued to add users and gain market share. The company's cash equity market share jumped from 21.6% in Q3 FY25 to 28.8% in Q3 FY26, while its equity derivatives share surged from 12.2% to 18.1%. Retail cash average daily turnover also rose by a healthy 21% year-on-year to ₹11,331 crore, with retail derivatives ADT jumping an impressive 45%.
Product diversification
New products and strategic partnership contribute to income growth
New offerings such as commodity trading, loans against securities, and Fisdom contributed 49% of total income growth during the quarter. Commodity trading alone crossed 2.5 lakh active traders and contributed about 4% of total income in Q3 FY26. Separately, State Street Investment Management invested $65 million (around ₹580 crore) in Groww AMC as part of a strategic partnership aimed at expanding global investment capabilities and product offerings.