Billionbrains Garage Ventures Limited, the parent company of discount broker Groww, reported a 12% year-on-year increase in its profit after tax (PAT) for the quarter ended September 30, 2025, to `471.3 crore.
The company’s total income came in at Rs 1,070.8 crore, up 13% sequentially but nearly 8% lower year-on-year. Its average daily turnover for the cash segment rose from 17.7% to 25.8%, while that for the derivatives segment increased from 10.7% to 17.3% on a year-on-year basis.
Groww, which got listed on the exchanges last week, had surged 31% on its debut day. The stock has since climbed 58%. Following the Q2 results announcement, it rose 7.5% intraday before erasing most of the gains to close 0.8% higher.
In its investor presentation, the company said it had invested in discretionary branding activities such as the Asia Cup and Kaun Banega Crorepati, adding that “in the absence of which our PAT margins could have been even higher.”
High operating leverage drives profit growth
“Our business model largely resembles that of a software platform, where most of the incremental revenues flow through entirely to the bottom line, with more than 90% of our costs not direct in nature. Whenever our revenue growth outpaces costs, our leverage improves, thereby leading to higher profitability,” the company said.
User engagement and higher order value fuel revenue per order
Active users grew 3.2% quarter-on-quarter, led by new customer additions and increased engagement across multiple products. In Q2 FY26, 4.5% of the company’s 13% incremental revenue growth came from newly acquired users, with the remainder driven by existing customers.
On the derivatives side, Groww said revenue per order declined year-on-year due to the true-to-label circular regulation, while the revenue per order for stocks increased. “This has been driven by two factors: higher average order value — 66% growth YoY to Rs 59,079 as compared to Rs 35,502 in Q2 last year. Pricing changes made over the past year have contributed to the rest of the growth in yield per order,” the company said.
