Groww Q2 Profit Rises 54% to Rs 726 Crore as F&O Share of Revenue Falls to 45%

Billionbrains Garage Ventures, the company behind the Groww investing app, reported a consolidated net profit of ₹725.6 crore for the July-September quarter, up 54% from ₹471 crore a year earlier. Revenue from operations climbed 47% to about ₹1,501 crore from ₹1,019 crore.

The headline growth is strong, but the more important story in the numbers is where that revenue is now coming from.

Less dependent on F&O traders

A year ago, equity derivatives, mostly futures and options trading by retail customers, made up roughly 57% of Groww's revenue. In the September quarter, that share fell to 45%. The shift matters because derivatives trading has been the most regulated corner of Indian broking over the past two years, with SEBI tightening rules on contract sizes, expiries and, more recently, introducing a closing auction session that has weighed on derivatives volumes across brokers.

Groww still gained ground in the segment, raising its share of equity derivatives activity to about 11% from 8.6% a year ago. But other businesses are now growing fast enough to dilute F&O's weight in the mix.

Commodities trading, which Groww added only recently, contributed 6.2% of revenue in the quarter, compared with just 0.2% in the same period last year. Its share of the margin trading facility market, where it lends to customers to buy shares, rose to 2.7% from 1.6%.

Mutual funds and wealth add depth

The company's mutual fund distribution business also gained share, reaching 14.8% of the market against 13.1% a year earlier. Its asset management arm grew assets under management by 145% to ₹7,179 crore, and the wealth division crossed ₹10,000 crore in assets.

Across the platform, transacting users rose 27% year on year to about 2.4 crore, and total customer assets grew 46% to roughly ₹3.9 lakh crore. The company added around 11 lakh new transacting users during the quarter, helped by heavy activity in the IPO market.

A slight sequential dip

Not every number moved up. Profit was about 1% lower than the ₹735 crore earned in the June quarter, reflecting the hit to derivatives volumes after the closing auction session was introduced. Operating efficiency held up, though: the EBITDA margin improved to 64.5% from 63.9% in the previous quarter, an unusually high level that reflects how lean a large digital broker can be once its customer base reaches scale.

What it means for investors

For a company that listed only last year, the quarter reads as a deliberate rebalancing. Broking firms built on F&O volumes have been exposed every time regulators move, and Groww's results suggest it is spreading its earnings across lending, commodities, funds and wealth management to reduce that risk.

The test in the coming quarters will be whether these newer lines can keep growing fast enough to offset any further regulatory squeeze on derivatives, and whether margins near 65% can be sustained as the company invests in businesses such as lending that typically carry higher costs and credit risk.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.