Groww rallies 8% after Q1 profit jumps 94%; analyst sees up to 27% upside

Shares of Billionbrains Garage Ventures Ltd, parent of investment platform Groww, rose nearly 8% during Wednesday's session on the National Stock Exchange after the company reported first-quarter results for fiscal 2027.

The stock opened at ₹205 and touched an intraday high of ₹219.62. Around 12:15 PM, it traded 3.3% higher at ₹211, with about 94 million shares changing hands on the NSE. The Nifty 50 was up 0.56% at 24,188 at the same time.

Q1 numbers

Billionbrains posted a 94.3% year-on-year rise in profit after tax, which reached ₹735 crore in the April-June quarter versus ₹378 crore a year earlier. The company said operating leverage emerged across cost categories, driving PAT margin to 47.5%, an expansion of 7.6 percentage points year on year.

Total income climbed 63% year on year to ₹1,549 crore from ₹948 crore, supported by adoption of newer products such as margin trade funding and commodity derivatives. EBITDA more than doubled to ₹971 crore in the reporting quarter from ₹483 crore in the same quarter of the previous fiscal year.

Analyst call

Rajesh Palviya of Axis Securities said the business volumes, broking platform traction and product innovation could extend the stock's upside. He expects the share price to reach the ₹250-260 range in the short to medium term, with key support at ₹185. Any volatility-driven correction should be used to accumulate the stock, he said.

Client and market share update

Groww added 115,000 net clients in Q1, helped by higher retention despite an industry-wide slowdown. The platform had 1.7 crore active users as of June 30, 2025.

Its direct mutual fund AUM stood at ₹1.9 lakh crore, while SIP inflows grew 32% year on year, double the industry's 16%. In cash equities, retail ADTO market share declined quarter on quarter to 15.1% following risk controls, but was 3.3 percentage points higher year on year. In commodity derivatives, retail market share in notional ADTO across MCX and NSE reached 28.6%.

Groww AMC's AUM rose around 140% year on year in the June quarter. The company also said it received approval from Sebi and the Competition Commission of India for a strategic investment by State Street Global Advisors into Groww AMC.