Groww share price: Fresh target price as Q3 profit drops 28%

MOFSL on Friday said Billionbrains Garage Ventures Ltd, which operates the Groww platform, continued to report strong revenue growth, supported by rising user adoption across products and robust user activation. The brokerage said Groww’s broking business was gaining market share across segments, aided by recent product launches such as margin trading facility and commodities, which were driving incremental growth. It added that the rising number of affluent customers was opening up wealth management opportunities, with the ongoing integration of Fisdom expected to further support this segment.

The domestic brokerage suggested a target price of Rs 190 on Groww post its December quarter results.

"We have increased our FY27/FY28 EPS estimates by 2 per cent each, considering strong MTF book expansion and a better-than-expected launch of the commodities segment. We maintain our Buy rating with a revised target price of Rs 190 (premised on 28x FY28E EPS)," MOFSL said.

Groww reported operating revenue of Rs 1,220 crore in the December quarter of FY26, up 25 per cent year on year and 19 per cent quarter on quarter, MOFSL said. For the first nine months of FY26, operating revenue stood at Rs 3,140 crore, flat on a year-on-year basis, it noted.

Operating expenses rose 20 per cent sequentially to Rs 500-odd crore in the quarter, driven by the launch of the commodities segment and incremental costs related to new user acquisition and transaction activity. Adjusted Ebitda increased 24 per cent year on year and 19 per cent sequentially, while the adjusted Ebitda margin remained stable at 61 per cent. Excluding Fisdom, adjusted Ebitda margin expanded to 63.7 per cent.

Profit after tax stood at Rs 546.93 crore, down 28 per cent YoY but up 16 per cent sequentially. MOFSL said that excluding the provision for a one-time incentive, PAT would have grown 24 per cent YoY. For the first nine months of FY26, PAT was around Rs 1,400 crore, down 8 per cent year on year.

MOFSL said margin expansion during the quarter was supported by strong revenue growth, as costs remained largely fixed in nature. Management guided that employee and marketing costs were likely to grow in the range of 10 to 20 per cent.

Segment-wise, broking revenue rose 15 per cent year on year to Rs 940 crore, driven by a 4 per cent increase in orders to 47.42 crore and a rise in revenue per order to Rs 19.80 from Rs 17.90 in the year-ago quarter. Derivatives revenue increased 6 per cent year on year and 10 per cent sequentially to around Rs 670 crore, with Groww’s retail option premium average daily traded options market share rising to 18.1 per cent from 12.2 per cent a year ago.

Stock segment revenue grew 26 per cent year on year and 12 per cent quarter on quarter to around Rs 230 crore, while average daily traded orders market share rose to 28.8 per cent from 21.6 per cent in the year-ago quarter. MOFSL noted that strong activity in commodity exchange-traded funds also supported growth in the stocks segment. Commodity derivatives, which were launched recently, contributed 3.5 per cent to total operating revenue and accounted for 4.6 per cent of total broking orders.

Margin trading facility revenue increased 41 per cent sequentially to Rs 75.7 crore, with the MTF book expanding to Rs 2,310 crore from Rs 1,670 crore in the previous quarter. Credit segment revenue rose 8 per cent year on year and 18 per cent sequentially to Rs 75.7 crore, while the personal loan book grew 7 per cent sequentially to Rs 1,390 crore. Loan against securities contribution increased to 9.7 per cent from 4.6 per cent in the September quarter, and partner-led disbursements grew 24 per cent sequentially to Rs 350 crore.

Assets under management at the asset management company reached Rs 4,120 crore. State Street Investment Management invested Rs 580 crore for a 23 per cent stake in Groww AMC, which MOFSL said strengthened the balance sheet of the AMC business. The wealth management arm, Fisdom, reported revenue of Rs 28.7 crore and an Ebitda loss of Rs 14.7 crore during the quarter.

Customer acquisition cost declined 33 per cent sequentially to around Rs 900, while transacting user additions stood at 14 lakh, the highest level in the last four quarters, taking the total transacting user base to 2.04 crore.