The decline in profit was attributed to a one-time tax-adjusted gain of Rs 315 crore in Q3 FY25. Meanwhile, the company reported a 24% rise in operating PAT to Rs 546.93 crore from Rs 442 crore.
Revenue from operations in the quarter increased 24.8% year-on-year to Rs 1,216.07 crore, compared with Rs 974.53 crore in the corresponding quarter of FY25. However, standalone net profit fell 36.7% YoY to Rs 428.45 crore from Rs 677.46 crore.
The company strengthened its market position during the period. Its share in the stock market rose to 28.8% from 21.6% a year ago, while its share in equity derivatives increased to 18.1% from 12.2%. Average daily turnover in the retail cash segment grew 21% to Rs 11,331 crore, while retail derivatives turnover jumped 45% to Rs 11,483 crore.
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In the mutual fund segment, SIP inflows increased 30% year-on-year to Rs 12,328 crore in Q3FY26 from Rs 9,476 crore in Q3FY25. During the same period, Groww’s market share in mutual funds improved to 13.7% from 12.3%. The company also announced that it will acquire additional shares in Groww Asset Management Limited (Groww AMC), which remains its wholly owned and non-material subsidiary.
After the company’s Q3 results, here is what analysts are saying:Motilal Oswal: Buy| Target price: Rs 190
Motilal Oswal Financial Services (MOFSL) has retained its ‘Buy’ rating on Groww and raised the target price to Rs 190 from Rs 185 earlier. The brokerage said the upgrade is backed by robust revenue growth, which has aided margin expansion. It added that Groww’s improving EBITDA margins have been driven by strong topline performance and operating leverage arising from largely fixed costs.
Management has guided that employee and marketing expenses are expected to rise between 10–20%. If revenue growth continues to outpace this increase in costs, it could result in further margin expansion. Additionally, Groww’s brokerage business is gaining market share across segments.
MOFSL has also raised its earnings per share (EPS) estimates for FY27 and FY28 by 2% each. This revision takes into account the strong expansion in Groww’s margin trading facility (MTF) book and a better-than-anticipated launch in the commodities segment.
Citi: Buy| Target price: Rs 190
Ahead of Groww’s Q3 results on Wednesday, global brokerage firm Citi Research initiated coverage on the stock with a target price of Rs 190.
Large-scale retail brokers are in a transitional phase—shifting to one-stop platforms for financial products distribution from pure-play broking-led market proxies. Niche market leadership, customer-centric approach driving high brand recall, and lean business structure generating elevated operating efficiencies augur well for Groww, the brokerage said in a note.
Citi highlights its customer-centric approach, first-mover advantage in direct mutual funds and leadership in retail broking, which have resulted in strong brand recall and significant cross-selling potential across a large captive customer base. Average active users grew at a 61% CAGR over FY2023–FY2025, supporting revenue accretion. The brokerage also points to Groww’s lean operating structure, which offers scope for further margin expansion, with adjusted EBITDA margin estimated at 69.3% by FY2029E, an improvement of 870 basis points over FY2026E.
Citi forecasts EPS CAGR of 35% over FY2026–FY2029 for Groww.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
