Billionbrains Garage Ventures, the parent company of the online brokerage platform Groww, posted a consolidated net profit of ₹471 crore for the quarter ended 30 September 2025, marking a 12 % increase from the same period a year ago (₹420 crore).
However, revenue saw a decline of around 9.5 % year-on-year, falling to approximately ₹1,018.7 crore in Q2 FY26 from around ₹1,125.4 crore in Q2 FY25.
What’s behind the profit rise & revenue drop
Profit drivers
- Improved margins and cost control helped push profitability higher despite the weaker top line. For example, EBITDA rose to about ₹604 crore, up ~9.8 % year-on-year.
- Active client counts and engagement reportedly improved, allowing Groww to extract more value per user.
Revenue pressure
- The decline in revenue indicates that either trading volumes, fee income or other operating income faced headwinds in the quarter.
- According to the firm, while active users grew, product mix and user behaviour may have shifted, affecting unit revenue.
Context: Why this matters for Groww & the broader brokerage sector
- Groww’s strong profit performance sends a signal that online brokerage platforms can generate healthy profits even when growth slows — a positive sign for investor sentiment.
- The revenue dip serves as a caution — growth in user base may not directly translate into revenue if product usage, fee structures or market conditions are unfavourable.
- Given Groww’s recent listing (from earlier in November 2025) and strong market debut with valuation at over US $8 billion (₹761 billion approx), this earnings update is closely watched. Reuters
What to watch going forward
- User growth & engagement: Will Groww be able to maintain or accelerate growth in active users and increase cross-product usage (mutual funds, stocks, US stocks, etc.)?
- Revenue per user: With revenue down, the key will be how Groww manages fee structures, product monetisation and retention.
- Cost discipline vs. growth investment: Groww’s ability to balance spending (for marketing, technology, compliance) with margin expansion will determine whether profit growth is sustainable.
- Competitive landscape & regulation: The online brokerage market in India is crowded (e.g., Angel One, Zerodha, Upstox). Regulatory changes or shifts in investor behaviour could influence growth.
- Macro effects: Broader market volatility, investor sentiment, capital markets activity in India will impact brokerage fee income and investor behaviour.
Final word
Groww’s Q2 results — a ₹471 crore profit with a 12 % year-on-year rise — underscore the platform’s operational strength, but the nearly 10 % revenue drop highlights that growth isn’t guaranteed. For the company and its investors, the coming quarters will be about translating its user-base momentum into stronger revenue streams and maintaining cost discipline. The message is clear: profitability has been achieved, growth in revenue remains the next frontier.
