Groww’s Net Profit Jumps 12% to Rs 471 Crore in Q2 FY26 as Company Doubles Down on Customer-First Strategy
Groww, now India’s most popular stockbroking platform by active clients, has posted its first quarterly results after going public — and the numbers are turning heads. Despite a dip in revenue due to a sluggish retail trading space, the company delivered strong profitability, signaling that its long-term strategy is working.
Groww, which competes with industry leaders like Zerodha, reported a sharp rise in net profit even as the broader market saw lower activity and fewer active traders. The company’s continued focus on efficiency, steady user growth and strong asset inflows powered its performance.
Below is a breakdown of how Groww managed to grow its bottom line when much of the market was slowing down.
Revenue Slips but Profit Surges
Revenue Declines Due to Weak Retail Activity
Groww’s revenue from operations fell 9.5 percent year-on-year to Rs 1,018.7 crore in Q2 FY26. This comes amid a noticeable drop in retail trading, which is visible across the industry. The number of NSE active users fell from 50.2 million earlier in the year to 45.3 million by the end of the quarter.
Including other income of Rs 52.1 crore, Groww’s total income for the quarter was Rs 1,070.8 crore.
Quarter-on-Quarter Growth Shows Stability
While year-on-year revenue fell, quarter-on-quarter numbers tell a different story. Compared to Q1 FY26, revenue rose 12.7 percent from Rs 904.4 crore. Total income also increased by roughly 13 percent over the previous quarter, showing that the business regained momentum after a softer start to the fiscal year.
Half-Year Revenue Mirrors the Trend
For the first half of FY26, revenue stood at Rs 1,923.1 crore, down 9.6 percent from Rs 2,126.2 crore in the same period last year. Much of this decline can be attributed to muted market participation, especially in high-frequency retail trading — a key source of revenue for brokers.
Cost Controls Drive Strong Profit Growth
Expenses Fall Faster Than Revenue
Groww continued its disciplined cost management, which became the biggest driver of profitability this quarter. Total expenses fell nearly 27 percent to Rs 432.6 crore from Rs 589.8 crore a year earlier.
This significant reduction allowed the company to offset the revenue drop and improve margins.
Employee Costs Reduced Significantly
One of the standout changes was the reduction in employee benefit expenses. These fell more than 53 percent to Rs 123.8 crore from Rs 264.2 crore in the previous year. The company has been optimizing teams, refining processes and improving efficiency across functions.
Finance costs saw a modest rise, and depreciation remained steady, contributing to an overall leaner cost structure.
Profit Rises Over 12 Percent Year-on-Year
With expenses dropping much faster than revenue, Groww reported a strong rise in profitability. Net profit for Q2 FY26 came in at Rs 471.3 crore, up 12.2 percent from last year’s Rs 420.2 crore.
For the first half of FY26, net profit grew to Rs 849.7 crore compared to Rs 758.2 crore a year ago — a 12.1 percent increase.
Groww also reported an adjusted EBITDA of Rs 624 crore for the quarter, indicating strong operating efficiency.
Platform Growth Remains Strong Despite Market Slowdown
More Users, Higher Engagement
Groww continued to grow sharply in terms of user activity. The platform ended the quarter with 19 million transacting users, a massive 27 percent rise from last year.
This growth is especially notable at a time when total NSE active users have dropped across the industry.
Customer Assets Touch Rs 2.7 Lakh Crore
Despite weaker markets earlier in the year, customer assets on Groww’s platform climbed to Rs 2.7 lakh crore, growing 33 percent year-on-year. Strong inflows into mutual funds and growth in equity holdings supported this expansion.
Breakdown of assets:
- Mutual fund assets: over Rs 1.4 lakh crore
- Equity assets: around Rs 1.18 lakh crore
These numbers underline the platform’s ability to attract long-term investors even when short-term trading volumes are down.
Groww Gains Market Share Across Segments
Stronger Position Among NSE Active Clients
Groww’s share of NSE active clients rose from 25.6 percent to 26.3 percent over the past year. It now leads the industry in terms of active customer participation.
Retail Cash Segment Share Soars
In the retail cash market, Groww’s share increased from 17.7 percent to 25.8 percent. This highlights the platform’s rising influence among investors transacting in equity delivery and cash trades.
Derivatives Market Share Expands
Groww also saw substantial growth in retail derivatives premium turnover, rising from 10.7 percent to 17.3 percent. While derivatives remain dominated by older brokerages, Groww’s improving share shows growing trust among active traders.
Fresh After IPO, Groww Shows Long-Term Ambition
A Successful Market Debut
Groww recently listed on the stock exchanges after raising Rs 6,632 crore through its IPO. The offering included a Rs 1,060 crore fresh issue and a Rs 5,572 crore offer for sale.
The stock listed at Rs 114 on the BSE, a 14 percent premium over its issue price of Rs 100 — a strong debut despite cautious market sentiment.
CEO Reaffirms the Customer-First Approach
Lalit Keshre, co-founder and CEO of Groww, emphasized that the platform’s long-term thinking continues to shape its growth.
He said that Groww operates with one principle in mind: thinking from the customer’s perspective. By building products that customers genuinely love, monetization naturally follows.
According to him, the company aims to keep creating long-term value for both users and shareholders.
The Bigger Picture: What Groww’s Q2 Performance Means
Groww’s results highlight a broader shift in India’s investing culture. Even as active traders reduce participation, long-term investors continue to increase their presence. Platforms that emphasize trust, simplicity and low-cost investing are benefiting the most.
With stronger profitability, rising market share and a successful IPO behind it, Groww is positioning itself for the next phase of growth in India’s financial ecosystem.
The company’s ability to scale while maintaining discipline will play a crucial role in how it performs in the coming quarters. For now, Groww’s message is clear: focusing on customers isn’t just good practice — it’s good business.
