Groww's Q4 profit jumps 122% to ₹686cr; revenue up 87%
What's the story
Billionbrains Garage Ventures, the parent company of Groww, has reported a massive 122% year-on-year jump in its consolidated net profit for the March-ended quarter. The company's net profit stood at ₹686 crore, up from ₹309 crore in the same period last year. The strong financial performance was driven by user growth and increased trading activity on the platform.
Financial performance
Revenue from operations up by 87% year-on-year
Along with the net profit, Groww also witnessed a whopping 87% year-on-year growth in its revenue from operations. The company's revenue for the March quarter stood at ₹1,505 crore. The company's EBITDA also saw a massive jump of 142% year-on-year to ₹939 crore for the reporting quarter.
Market traction
User growth and platform activity continue to rise
The impressive financial performance of Groww was aided by a continued increase in user growth and platform activity. The total number of transacting users on the platform grew by 25% year-on-year to 21.6 million, while active users stood at 16.7 million. Total customer assets on the platform also rose by 36% year-on-year to ₹3 lakh crore, reflecting continued investor confidence in the company despite marginal sequential decline due to mark-to-market losses during the quarter.
Revenue sources
Trading activity drives revenue growth amid market volatility
Groww's core revenue engine was driven by trading activity, particularly in derivatives. The contribution of equity derivatives to total income rose to 54.6% in Q4, up from 53.5% earlier, as market volatility increased trading volumes. Newer segments such as margin trading facility (MTF) and commodities also gained traction, contributing a higher share to overall revenue amid heightened volatility during the quarter due to geopolitical tensions and continued selling by foreign institutional investors.
Segment performance
Strong traction in mutual funds segment
In the mutual funds segment, new SIP registrations grew by 61.5% year-on-year while SIP inflows rose by 35% year-on-year, outpacing broader industry growth. The equities segment also witnessed strong traction with turnover per user increasing by 25% year-on-year. The derivatives segment saw average orders per user rising over 43% year-on-year amid heightened market volatility during the quarter driven by geopolitical tensions and continued selling by foreign institutional investors.