As the IPO of Billionbrains Garage Ventures, better known as Groww IPO, opens for subscription on November 4, all eyes are on the company behind one of India’s most popular investing platforms.
The brokerage firm Nuvama Institutional Equities has shared its detailed view on Groww’s performance and prospects ahead of the public issue. Let’s take a look into it –
Nuvama on Groww: India’s largest retail broker by active users
According to Nuvama’s report, Groww is India’s largest retail broker in terms of active clients, holding a 26.3% market share as of the first quarter of FY26.
The brokerage highlighted that the company has seen a sharp expansion in users over the past few years, outpacing its rivals. “Its active client base grew at a sharp FY21–25 CAGR of 101.7%, compared to the industry’s 27% and Angel One’s 48.3%,” the report said.
The firm also noted that Groww accounted for more than 40% of incremental active clients added to the NSE in FY25.
Nuvama on Groww: Less dependent on F&O trading
While many brokers rely heavily on futures and options (F&O) trades for revenue, Nuvama points out that Groww’s earnings are more diversified. “We also expect Groww to be less hurt by any reduced F&O trading – we estimate a 5% drop in F&O orders shall drag Groww’s Q1FY26 revenue/EBDAT/APAT by 2.5%/4.8%/4.4%,” the brokerage said.
According to the report, Groww’s F&O revenue contribution has fallen from over 90% in FY24 to around 62% in Q1FY26, showing a shift toward a more stable business mix.
Nuvama on Groww: About margins and acquisition costs
As per the brokerage report, “Groww’s activation rates over FY24–Q1FY26 are at 33%-plus, driving down customer acquisition cost per active client to just Rs 1,441 in FY25, yielding strong EBDAT margin of 59.7%.”
Nuvama added that Groww’s marketing spends are much lower than rivals. The company allocated around 12.5% of revenue to marketing, whereas Angel One spent nearly 20%. Despite this, Groww’s activation rate, the proportion of users who actually start trading is higher than peers.
Nuvama on Groww: Technology and user experience drive success
Nuvama believes that Groww’s growth is not just due to competitive pricing but also its technology and user interface. “We believe apart from competitive pricing, technology and user interface are key factors driving success,” the brokerage said. The platform’s app-based approach and simple onboarding process have helped it attract younger investors and first-time traders.
Nuvama on Groww: Beyond broking – its expansion
As per the brokerage house, the company is no longer just a stockbroking platform. It has been expanding into other financial services as well. This includes lending, mutual funds, wealth management, and insurance distribution. These verticals, while still small in scale, could support future growth.
The brokerage stated, “Besides broking, Groww has expanded into lending (MTF, LAS, personal loans), asset and wealth management, and insurance distribution – businesses yet to scale up.”