Groww Reports INR 471 Crore Profit in Q2, Revenue Declines Nearly 10% YoY

Billionbrains Garage Ventures, the parent of online investment platform Groww, has reported a net profit of INR 471.33 crore for the quarter ended September 2025, up about 12 % from INR 420.16 crore in the same period a year ago.

However, its revenue from operations fell by around 9.5 % year-on-year to INR 1,018.7 crore, from INR 1,125.39 crore in Q2 FY25.

Revenue slides, but cost controls shine

While top-line revenue declined, Groww made up considerable ground by cutting costs. Total expenses in Q2 dropped sharply to INR 432.60 crore, down from INR 589.80 crore in the previous year quarter.

This allowed the company’s margin to improve significantly, offering a cushion against the weakening revenue.

On a sequential basis, revenue rose modestly from the previous quarter’s roughly INR 904 crore to INR 1,018.7 crore, indicating a potential stabilisation.

User growth and business indicators are looking solid

Groww also reported its user base and assets under management, seeing healthy growth:

• Total transacting users reached 19 million, up 27 % year-on-year.
• Customer assets rose to INR 2.7 lakh crore, marking a 33 % jump. Mutual funds now account for 53 % of total assets.

This suggests that even though revenue declined, the platform’s underlying user traction remains strong.

Product-Mix & Business Strategy Update

Billionbrains Garage Venture (parent of Groww) said high-growth segments gained traction in Q2. Revenue from stocks and the margin trading facility (MTF) each increased by nearly 4 percentage points, while interest earnings via loans-against-securities rose 2 points. Meanwhile, the share of derivatives revenue fell 10 points, signalling a shift towards more stable revenue lines.

The company also noted that newly acquired users accounted for about 4.5 % of the incremental revenue (out of ~13 % rise in revenue sequentially) in Q2, underscoring that growth is coming from both new and existing users.

Additionally, the platform launched commodity trading in September and registered about 7,000-8,000 average daily transacting users with 8-10 trades each, though the segment currently contributes less than 1 % of revenue.

Market reaction and context

Groww’s share price had seen some pressure ahead of the results, falling nearly 17 % over two sessions and erasing a chunk of its market value.

Following the results, investor sentiment improved somewhat, and the stock regained some ground.

It’s noteworthy that this is the first full quarterly result since the company’s recent listing, putting extra focus on how it manages growth and profitability altogether.

What to watch going forward

• Whether Groww can stabilise and grow its revenue after the Q2 dip.
• How the mix between mutual funds, stocks, IPOs and ETFs evolves, given the shift towards more asset-friendly products.
• Expense control versus growth investment: with costs down now, will the company spend more to accelerate growth?
• Market sentiment and how investors price the company in light of both the strong bottom-line and weak top-line trend.