Groww Q2 Results: Profit Jumps 54% YoY to Rs 725 Crore as Revenue Soars 47%
India’s largest retail broking platform has delivered a strong quarter. Billionbrains Garage Ventures, the parent company of Groww, on Wednesday announced its results for the September quarter of FY27, and the numbers tell a clear story: rapid user growth, diversifying revenue streams, and a business that is steadily reducing its dependence on one product category.
The company reported a consolidated net profit of Rs 724.7 crore for Q2 FY27, a jump of nearly 54% compared to Rs 471 crore in the same quarter last year. Revenue from operations rose 47% year-on-year to Rs 1,501.5 crore, up from Rs 1,019 crore a year ago.
On a sequential basis, though, the picture was flatter. Net profit dipped about 1.4% from Rs 735 crore in the June quarter, and revenue was largely unchanged. The reason, the company said, was a sharp fall in equity derivatives volumes after the market regulator introduced the Closing Auction System, which reshaped how trades get executed near the market close.
The CAS Effect: F&O Takes a Hit, But the Business Adapts
Since August 3, 2026, SEBI’s Closing Auction System has replaced the older volume-weighted method with a 20-minute closing auction between 3:15 PM and 3:35 PM for F&O eligible stocks. The transition created a gap between the old reference price and the new equilibrium price during the early adoption phase, and volumes across the industry slipped.
For Groww, the impact was direct. Equity derivatives revenue fell 14.3% quarter-on-quarter, and the segment’s contribution to total revenue dropped to 44.8% in Q2 FY27 from 56.9% a year earlier.
What stands out, however, is how the rest of the business picked up the slack. Commodity derivatives grew their share of revenue from just 0.2% to 6.2% year-on-year. The Margin Trading Facility book expanded sharply, with MTF’s contribution rising from 7.4% to 10.1% of revenue. Average daily stock turnover jumped 42% to Rs 14,430 crore, and the MTF book itself grew 160% year-on-year to Rs 4,351 crore.
User Growth Remains the Core Story
Beyond the financial metrics, the platform’s reach keeps expanding. Groww said its total transacting users reached 2.4 crore in the September quarter. Total customer assets climbed 46% year-on-year to Rs 3.9 lakh crore.
The asset management business is also gaining traction. Groww AMC’s assets under management surged 145% year-on-year to Rs 7,179 crore, up from Rs 2,928 crore a year ago. The share of actively managed funds within that AUM rose from 47% to 57%, and AMC revenue jumped 131% year-on-year.
- Net profit: Rs 724.7 crore, up 53.8% YoY from Rs 471 crore
- Revenue from operations: Rs 1,501.5 crore, up 47.4% YoY from Rs 1,019 crore
- EBITDA margin: 64.2%, largely unchanged from the previous quarter
- Transacting users: 2.4 crore
- Customer assets: Rs 3.9 lakh crore, up 46% YoY
- AMC AUM: Rs 7,179 crore, up 145% YoY
Why the Stock Fell Despite Strong Results
Perhaps the most interesting part of the day was the market’s reaction. Despite the strong year-on-year growth, Groww’s shares slipped about 1.5% to Rs 190.80 on the BSE after the results were announced, hitting an intraday low.
This is a familiar pattern on results day. The headline YoY numbers look strong, but traders were focused on the sequential slowdown: flat revenue and a marginal dip in profit compared to the June quarter. The CAS disruption in derivatives is the kind of near-term headwind that markets price in quickly, even when the long-term diversification story looks encouraging.
That said, the stock’s longer journey has been impressive. Groww listed in November 2025, and the shares have delivered a return of roughly 47% since listing, even after today’s dip.
What Investors Are Watching Next
The key question now is whether the diversification beyond equity derivatives can sustain itself. Commodity derivatives and margin lending are growing fast from a small base, and the AMC business is scaling well. If derivatives volumes stabilise as the industry settles into the new closing auction regime, the next few quarters could show both YoY and sequential growth again.
For India’s broader discount broking story, Groww’s quarter is another data point in a larger trend: millions of new investors entering the market, platforms competing on user experience, and the race to build revenue beyond pure trading commissions.
FAQs
How much profit did Groww report in Q2 FY27?
Groww’s parent company reported a net profit of Rs 724.7 crore, up about 54% from Rs 471 crore in the same quarter last year.
Why did Groww’s stock fall despite the strong results?
The stock dipped because profit slipped marginally compared to the June quarter, and equity derivatives revenue fell after SEBI’s new Closing Auction System disrupted F&O trading volumes.
What is the Closing Auction System (CAS)?
Introduced by SEBI on August 3, 2026, CAS replaced the old closing price method with a 20-minute closing auction (3:15 PM to 3:35 PM) for F&O eligible stocks. It caused a temporary fall in derivatives volumes across the industry.
How many users does Groww have now?
Groww reported 2.4 crore transacting users in the September quarter, with total customer assets of Rs 3.9 lakh crore, up 46% year-on-year.
Is Groww’s AMC business profitable?
The AMC’s AUM grew 145% YoY to Rs 7,179 crore and its revenue jumped 131%, though the unit reported a net loss of Rs 8.3 crore for the quarter.
Groww’s quarter shows a business in transition: the F&O engine that powered its rise is cooling under regulatory change, while newer segments are firing. Whether that transition continues smoothly will decide how the next few quarters play out.
