Groww share price target: Broking revenue improves, MTF surge continues, says MOFSL

MOFSL has reiterated its 'Buy' rating on Billionbrains Garage Ventures Ltd, the parent of discount broker Groww, and raised its target price to Rs 250 from an earlier level, following the company's June-quarter results. The brokerage cited sustained revenue growth, rising user adoption and market share gains across segments as key drivers.

Groww reported operating revenue of approximately Rs 1,500 crore in the first quarter of FY27, up 66% year-on-year, in line with MOFSL's estimates. Operating expenses rose 26% YoY, coming in 14% below the brokerage's projections. Employee costs rose 33% YoY, while other expenses increased 23% YoY, both largely within expectations.

EBITDA doubled from a year earlier, with margin expanding to 64.6% from 53.4% in Q1FY26, beating MOFSL's estimate of 63.1%. Profit after tax surged 94% YoY and 7% quarter-on-quarter, exceeding the brokerage's forecast by 12%.

MOFSL noted that recent product launches such as the Margin Trading Facility and commodities are fuelling further growth. Overall orders in the broking segment are expected to rise more than 20% over FY27-28, supported by market share expansion and improving revenue per order. The MTF segment, loan against securities and wealth management are seen providing an additional boost.

Management commentary indicated that established businesses continue to gain operating leverage, and new products are largely built by existing teams, keeping the cost structure relatively stable. Customers acquired in FY26 are reportedly generating higher average revenue per user than earlier cohorts, signalling improving customer quality. US stock trading is currently under testing and expected to launch shortly, initially focused on US equities.

On the regulatory front, Groww's management said it does not expect any material impact on retail participation from the RBI's tightening of bank guarantee norms for proprietary trading. The recent impact on activity was primarily due to lower market volatility following easing geopolitical tensions.

Separately, JM Financial upgraded Groww to 'Buy' from 'Sell', raising its EPS estimates by 4-11% for FY27-29. JM Financial set a target of Rs 250, valuing the stock at 30 times September 2028 estimated EPS of Rs 8.3. The brokerage cited sustained market share gains and cost control as reasons for the upgrade.