Groww shares gain after quarterly profit surges on higher trading activity

Billionbrains Garage Ventures, the parent company of Indian online brokerage Groww, reported a consolidated net profit of 7.35 billion rupees ($76.5 million) for the quarter ended June 30, nearly double the 3.78 billion rupees earned a year earlier. The result, driven by rising trading activity and stronger user engagement, lifted investor sentiment, with Groww shares jumping as much as 8% immediately after the announcement.

At the time of writing, the stock traded 4.1% higher at 212.22 rupees, maintaining gains through the afternoon session.

User and asset growth

Groww said transacting users on its platform reached 22 million in the quarter, a 24% increase from a year earlier and a 4% rise sequentially. The company, founded almost a decade ago, says it is India's largest online investment platform by active users, serving more than 50 million customers.

Total customer assets rose 38% year over year and 22% from the previous quarter, the company said. Despite weakness across the broader brokerage industry, Groww added 115,000 active National Stock Exchange clients during the period. By comparison, the industry as a whole recorded a net decline of 257,000 clients, according to the company.

The commodities derivatives segment also boosted performance, with active users in that business climbing 10.7% sequentially to 435,000. Groww noted that the segment's higher contribution supported overall financial results.

Revenue from operations increased 66% year on year to 15.01 billion rupees, reflecting higher trading activity and platform growth. Expenses grew more slowly, up 25%, which helped drive the sharp increase in quarterly profit.

The results showed continued expansion in Groww's user base and customer assets, while the ability to add active exchange clients in a contracting industry underscored its relative market strength, the company said.