Groww stock rises despite Q3 profit drop; analysts share outlook
The stock rose 0.62 per cent to close at Rs 163.70 after the announcement of its Q3 FY26 results and disclosure of a strategic investment in its asset management arm.
- Jan 14, 2026,
- Updated Jan 14, 2026 6:21 PM IST
Shares of Billionbrains Garage Ventures, the parent company of fintech platform Groww, moved higher on Wednesday even as the company reported a year-on-year (YoY) decline in its third-quarter net profit. The stock rose 0.62 per cent to close at Rs 163.70 after the announcement of its Q3 FY26 results and disclosure of a strategic investment in its asset management arm.
For the quarter ended December, Groww reported a consolidated net profit of Rs 547 crore, down 28 per cent from Rs 757 crore posted in the same period last year. However, consolidated revenue from operations increased 25 per cent YoY to Rs 1,216 crore, compared with Rs 975 crore in the corresponding quarter of the previous fiscal.
In a separate exchange filing, the Bengaluru-based fintech firm said it has executed definitive agreements with State Street Global Advisors, Inc. Under the deal, the US-based asset management major has agreed to invest up to Rs 580 crore in Groww Asset Management Ltd (Groww AMC). The investment comprises a combination of secondary share purchase and primary subscription, which will lead to dilution of up to 23 per cent of the fully diluted share capital of Groww AMC.
Ravi Singh, Chief Research Officer at Mastertrust, said Groww's Q3 numbers appeared weak initially due to the sharp fall in net profit. However, he noted that the comparison was affected by a one-time gain recorded in the year-ago quarter. Excluding that factor, Singh said the company's core business performance remained steady, supported by higher operating revenue and continued growth in trading activity and user engagement on the platform.
Singh added that investor sentiment was also supported by the State Street Global Advisors deal, which he said helps unlock value in the asset management business, enhances financial flexibility and brings in a globally recognised partner.
On the other hand, Kranthi Bathini, Director – Equity Strategy at WealthMills Securities, said that Groww's valuations appeared stretched despite a decent set of numbers. He added that any near-term rally in the stock could be used by investors as an opportunity to book profits over the short to medium term.
Shares of Billionbrains Garage Ventures, the parent company of fintech platform Groww, moved higher on Wednesday even as the company reported a year-on-year (YoY) decline in its third-quarter net profit. The stock rose 0.62 per cent to close at Rs 163.70 after the announcement of its Q3 FY26 results and disclosure of a strategic investment in its asset management arm.
For the quarter ended December, Groww reported a consolidated net profit of Rs 547 crore, down 28 per cent from Rs 757 crore posted in the same period last year. However, consolidated revenue from operations increased 25 per cent YoY to Rs 1,216 crore, compared with Rs 975 crore in the corresponding quarter of the previous fiscal.
In a separate exchange filing, the Bengaluru-based fintech firm said it has executed definitive agreements with State Street Global Advisors, Inc. Under the deal, the US-based asset management major has agreed to invest up to Rs 580 crore in Groww Asset Management Ltd (Groww AMC). The investment comprises a combination of secondary share purchase and primary subscription, which will lead to dilution of up to 23 per cent of the fully diluted share capital of Groww AMC.
Ravi Singh, Chief Research Officer at Mastertrust, said Groww's Q3 numbers appeared weak initially due to the sharp fall in net profit. However, he noted that the comparison was affected by a one-time gain recorded in the year-ago quarter. Excluding that factor, Singh said the company's core business performance remained steady, supported by higher operating revenue and continued growth in trading activity and user engagement on the platform.
Singh added that investor sentiment was also supported by the State Street Global Advisors deal, which he said helps unlock value in the asset management business, enhances financial flexibility and brings in a globally recognised partner.
On the other hand, Kranthi Bathini, Director – Equity Strategy at WealthMills Securities, said that Groww's valuations appeared stretched despite a decent set of numbers. He added that any near-term rally in the stock could be used by investors as an opportunity to book profits over the short to medium term.