Financial services company Groww recorded a 94% YoY growth in its net profit from Rs 378 crore in Q1FY26 to Rs 735 crore in Q1FY27. The net profit saw a 7.1% growth QoQ from Rs 686 crore in Q4FY26.
The YoY net profit growth was majorly due to an over 63% growth in its total income from Rs 948 crore to Rs 1,549 crore. On the other end, the total expenses grew by around 25% during this period.
In its letter to shareholders, the company shared that its total transacting users increased to 22 million, growing by 4% QoQ and 24% on a YoY basis. The active users stood at 17 million. Total customer assets grew to Rs 3.6 lakh crore, growing by 22% QoQ and 38% on a YoY basis.
The company also marked an increase in market share in various product segments. Its market share in mutual fund SIP inflows increased from 12.4% to 14.1% YoY , from 11.8% to 15.1% YoY in average daily turnover of stocks and from 7.2% to 11% YoY in equity derivatives. In Margin Trading Facility (MTF) book, the company increased its market share from 1.2% to 2.7%.
Equity Derivatives
Equity derivatives contributed the most to Groww’s income with a 52% share. Stocks were the second biggest component with a 16.4% share while float and MTF contributed to about 8% of the income, each. The share of MTF in the income mix grew from 3% to 8% YoY. Recently introduced commodity derivatives also contributed to 4.9% of the income. The segment marked a 10.7% QoQ growth in active users from 0.393 million to 0.435 million.
Scaling Asset Management
The assets of the AMC arm of the business grew by over 2.4x from Rs 2,286 crore to Rs 5,491 crore on a YoY basis. The letter added that the AMC aims to capture whitespaces in the industry through the manufacturing of differentiated mutual funds and ETFs, based on customer demand.
The company shared that the increase in active clients on NSE was due to its better retention rates, aided by focus on product quality, user experience and trust. The letter also informed that the company aims to use AI to resolve customer queries with zero wait time, solve for customers’ unique research queries and increasing product velocity.
