Groww share price target: Broking revenue improves, MTF surge continues, says MOFSL
Groww shares: MOFSL said recent product launches such as MTF and commodities are fuelling further growth. Overall orders in the broking segment are expected to grow more than 20 per cent over FY27-28, it said.
- Jul 16, 2026,
- Updated Jul 16, 2026 9:19 AM IST
MOFSL on Thursday reiterated its 'Buy' rating on Billionbrains Garage Ventures Ltd, which operates Groww, after the discount broker's June results, and revised its target price to Rs 250. The brokerage said Groww continued to report strong year-on-year (YoY) revenue growth, supported by rising user adoption of products and robust user activation, while its brokerage business is gaining market share across segments.
MOFSL said recent product launches such as Margin Trading Facility (MTF) and commodities are fuelling further growth. Overall orders in the broking segment are expected to grow more than 20 per cent over FY27-28, backed by market share expansion and improving revenue per order, while the MTF segment, LAS and wealth management are expected to provide an additional boost to top-line growth.
MOFSL said: "We have largely maintained our top-line estimates, with lower cash and derivatives revenue offset by higher MTF revenue. We have increased our earnings estimates by 1%/3% for FY27/28, factoring in improved operational efficiency. We reiterate our BUY rating with a revised target of Rs 250 (premised on 38 times FY28E EPS)."
Groww reported operating revenue of about Rs 1,500 crore in 1QFY27, up 66 per cent YoY, which MOFSL said was in line with its estimates.
Operating expenses rose 26 per cent YoY in the quarter, which was 14 per cent below its estimates. Employee expenses increased 33 per cent YoY and were in line with estimates, while other expenses rose 23 per cent YoY and were 19 per cent below estimates.
Ebitda doubled YoY, with Ebitda margin coming in at 64.6 per cent, compared with 53.4 per cent in Q1FY26 and MOFSL’s estimate of 63.1 per cent. Profit after tax for the quarter was up 94 per cent YoY and 7 per cent quarter-on-quarter (QoQ), and 12 per cent above MOFSL’s estimates.
According to the management commentary, established businesses continued to gain operating leverage and new products are largely being built by existing teams. On this basis, management expects the overall cost structure to remain relatively stable.
Management said customers acquired in FY26 are generating higher ARPU than first-year cohorts acquired in earlier years, indicating improving customer quality. MOFSL noted that US stock trading is currently under testing and is expected to be launched shortly, with the initial offering focused on US equities. Expansion into other international markets will be evaluated based on customer demand, the brokerage noted.
On the regulatory side, the Groww management said it does not expect any material impact on retail participation from the RBI’s tightening of bank guarantee norms for proprietary trading. It said the recent impact was primarily driven by lower market volatility following the easing of geopolitical tensions. Overall, MOFSL said Groww’s revenue growth, market share gains and operating efficiency continued to support its positive view on the stock after the Q1 results.
Meanwhile, brokerage JM Finacnial said it has upgraded the Groww stock to 'Buy' from 'Sell' earlier. "Given sustained market share gains and costs under control, we are raising FY27E/28E/29E EPS by 4 per cent/6 per cent/11 per cent. Furthermore, we value the stock at a 50 per cent premium to Angel One (against a 20 per cent premium earlier), yielding a target of Rs 250, valuing it at 30x Sep’28E EPS of INR 8.3; upgrade to BUY (from SELL)," it said.
MOFSL on Thursday reiterated its 'Buy' rating on Billionbrains Garage Ventures Ltd, which operates Groww, after the discount broker's June results, and revised its target price to Rs 250. The brokerage said Groww continued to report strong year-on-year (YoY) revenue growth, supported by rising user adoption of products and robust user activation, while its brokerage business is gaining market share across segments.
MOFSL said recent product launches such as Margin Trading Facility (MTF) and commodities are fuelling further growth. Overall orders in the broking segment are expected to grow more than 20 per cent over FY27-28, backed by market share expansion and improving revenue per order, while the MTF segment, LAS and wealth management are expected to provide an additional boost to top-line growth.
MOFSL said: "We have largely maintained our top-line estimates, with lower cash and derivatives revenue offset by higher MTF revenue. We have increased our earnings estimates by 1%/3% for FY27/28, factoring in improved operational efficiency. We reiterate our BUY rating with a revised target of Rs 250 (premised on 38 times FY28E EPS)."
Groww reported operating revenue of about Rs 1,500 crore in 1QFY27, up 66 per cent YoY, which MOFSL said was in line with its estimates.
Operating expenses rose 26 per cent YoY in the quarter, which was 14 per cent below its estimates. Employee expenses increased 33 per cent YoY and were in line with estimates, while other expenses rose 23 per cent YoY and were 19 per cent below estimates.
Ebitda doubled YoY, with Ebitda margin coming in at 64.6 per cent, compared with 53.4 per cent in Q1FY26 and MOFSL’s estimate of 63.1 per cent. Profit after tax for the quarter was up 94 per cent YoY and 7 per cent quarter-on-quarter (QoQ), and 12 per cent above MOFSL’s estimates.
According to the management commentary, established businesses continued to gain operating leverage and new products are largely being built by existing teams. On this basis, management expects the overall cost structure to remain relatively stable.
Management said customers acquired in FY26 are generating higher ARPU than first-year cohorts acquired in earlier years, indicating improving customer quality. MOFSL noted that US stock trading is currently under testing and is expected to be launched shortly, with the initial offering focused on US equities. Expansion into other international markets will be evaluated based on customer demand, the brokerage noted.
On the regulatory side, the Groww management said it does not expect any material impact on retail participation from the RBI’s tightening of bank guarantee norms for proprietary trading. It said the recent impact was primarily driven by lower market volatility following the easing of geopolitical tensions. Overall, MOFSL said Groww’s revenue growth, market share gains and operating efficiency continued to support its positive view on the stock after the Q1 results.
Meanwhile, brokerage JM Finacnial said it has upgraded the Groww stock to 'Buy' from 'Sell' earlier. "Given sustained market share gains and costs under control, we are raising FY27E/28E/29E EPS by 4 per cent/6 per cent/11 per cent. Furthermore, we value the stock at a 50 per cent premium to Angel One (against a 20 per cent premium earlier), yielding a target of Rs 250, valuing it at 30x Sep’28E EPS of INR 8.3; upgrade to BUY (from SELL)," it said.