Groww's net profit jumps 12% to Rs 471 crore in Q2 FY26; CEO says, 'We think from the customer's perspective'

India's top stock broker Groww, which competes with Kamath brothers-led Zerodha, released its first quarterly results since its stock market debut, reporting stronger profitability despite a decline in revenue amid a broadly subdued retail trading environment.

The company’s revenue from operations fell 9.5% year-on-year to Rs 1,018.7 crore in Q2 FY26, compared with Rs 1,125.4 crore a year earlier. Including other income of Rs 52.1 crore, total income for the quarter stood at Rs 1,070.8 crore.

Sequentially, revenue rose 12.7% from Rs 904.4 crore in Q1 FY26, while total income increased around 13% from about Rs 948 crore in the previous quarter. For the half year ended September 2025, revenue declined 9.6% to Rs 1,923.1 crore from Rs 2,126.2 crore in H1 FY25.

The drop in revenue came during a period when NSE active users contracted from 50.2 million in January 2025 to 45.3 million by the end of Q2 FY26.

Cost controls played a significant role in supporting profitability. Total expenses fell sharply by approximately 26.7% year-on-year to Rs 432.6 crore in Q2 FY26 from Rs 589.8 crore in the same quarter last year. Employee benefit expenses, the company’s largest cost component, dropped more than 53% to Rs 123.8 crore from Rs 264.2 crore. Finance costs increased modestly year-on-year, while depreciation and amortisation remained broadly stable.

With expenses falling much faster than revenue, Groww reported an improvement in earnings, with net profit rising 12.2% year-on-year to Rs 471.3 crore from Rs 420.2 crore.

For the half year, profit increased 12.1% to Rs 849.7 crore compared with Rs 758.2 crore in H1 FY25. The company reported adjusted EBITDA of Rs 624 crore for Q2 FY26, reflecting a healthy expansion over last year’s level. Despite market-wide softness, user engagement and asset metrics remained robust.

Groww ended the quarter with 19 million transacting users, a 27% increase from the previous year. Customer assets grew to Rs 2.7 lakh crore, up 33% year-on-year, driven by continued inflows into mutual funds and strong growth in equity holdings. Mutual fund assets exceeded Rs 1.4 lakh crore, while equity assets stood around Rs 1.18 lakh crore.

Groww also strengthened its position within the industry, with its share of NSE active clients rising from 25.6% to 26.3% over the past year. The platform's market share in the retail cash segment increased from 17.7% to 25.8%, and its share in retail derivatives premium turnover expanded from 10.7% to 17.3%.

The quarterly results followed Groww’s recent listing on the stock exchanges. The company raised Rs 6,632 crore through its IPO, which comprised 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% premium to its issue price of Rs 100.

“We think about the platform from the customer’s perspective. Thinking this way generates customer love. Monetisation follows. We are committed to creating long-term value for all our shareholders,” said Lalit Keshre, co-founder and CEO of Groww.