India’s leading stock brokerage platform Groww has posted a 12% jump in net profit to Rs 471 crore in Q2 FY26, marking a strong performance despite declining revenue and a challenging retail trading environment.
The results come shortly after Groww’s stock market debut, signaling investor confidence in the company’s strategy and operational efficiency.
Revenue Trends
- Revenue from operations fell 9.5% year-on-year to Rs 1,018.7 crore in Q2 FY26, down from Rs 1,125.4 crore last year.
- Including other income of Rs 52.1 crore, total income stood at Rs 1,070.8 crore.
- Sequentially, revenue rose 12.7% from Rs 904.4 crore in Q1 FY26.
- For H1 FY26, revenue declined 9.6% to Rs 1,923.1 crore from Rs 2,126.2 crore in H1 FY25.
The decline in revenue coincided with a contraction in NSE active users, which fell from 50.2 million in January 2025 to 45.3 million by the end of Q2.
Profitability Boosted by Cost Controls
Groww’s profit growth was largely driven by tight cost management:
- Total expenses fell 26.7% year-on-year to Rs 432.6 crore from Rs 589.8 crore.
- Employee benefit expenses, the largest cost component, dropped over 53% to Rs 123.8 crore from Rs 264.2 crore.
- Finance costs rose modestly, while depreciation and amortization remained stable.
With costs falling faster than revenue, net profit increased 12.2% year-on-year, rising to Rs 471.3 crore from Rs 420.2 crore. For H1 FY26, profit grew 12.1% to Rs 849.7 crore from Rs 758.2 crore in the previous year.
Strong User Engagement and Asset Growth
Despite a soft market, Groww reported:
- 19 million transacting users, a 27% increase year-on-year.
- Customer assets of Rs 2.7 lakh crore, up 33% year-on-year.
- Mutual fund assets surpassing Rs 1.4 lakh crore, with equity assets at Rs 1.18 lakh crore.
The growth in assets reflects continued inflows into mutual funds and robust expansion in equity holdings.
CEO Perspective
Groww’s CEO emphasized the company’s customer-first approach as a key driver of performance:
“We think from the customer’s perspective,” he said, highlighting the platform’s focus on user experience, ease of investing, and long-term value creation.
This strategy, combined with disciplined cost control, has enabled Groww to deliver profits even in a subdued trading environment.
Key Takeaways
- Revenue may dip, but effective cost management can drive strong profitability.
- A growing customer base and asset inflows help sustain long-term growth.
- Groww’s user-centric strategy positions it to outperform competitors like Zerodha in the future.
Groww’s Q2 FY26 results prove that profitability and growth are possible even in challenging markets. With rising assets, increasing users, and a customer-first philosophy, the brokerage is poised for sustained success in India’s evolving financial ecosystem.
