Groww's shares rose 4% on Friday, reaching ₹170.95, even though the company's profit fell sharply.
Financial Performance in Q3 FY26
The company reported a 27.8% drop in consolidated net profit, down to ₹546.93 crore from ₹757.11 crore a year earlier. The fall reflects the loss of a one‑time tax‑adjusted gain of ₹315 crore that boosted profit in the same quarter last year.
- Operating profit (PAT) rose 24% to ₹546.93 crore.
- Revenue from operations increased 24.8% YoY to ₹1,216.07 crore.
- Standalone net profit fell 36.7% YoY to ₹428.45 crore.
Market Share and Business Growth
Groww strengthened its position in both cash and derivatives markets:
- Stock‑market share grew to 28.8% from 21.6% a year ago.
- Equity‑derivatives share rose to 18.1% from 12.2%.
- Retail cash‑segment turnover jumped 21% to ₹11,331 crore.
- Retail derivatives turnover surged 45% to ₹11,483 crore.
- Mutual‑fund SIP inflows climbed 30% YoY to ₹12,328 crore, and Groww’s market share in mutual funds rose to 13.7%.
Analyst Views
Two major brokerages kept a Buy rating on Groww and lifted their price targets to ₹190.
- Motilal Oswal highlighted strong revenue growth, expanding margins, and a market‑share rise across retail segments. It expects employee and marketing costs to rise 10‑20% but believes revenue will outpace those expenses.
- Citi Research praised Groww’s one‑stop platform, brand recall, and lean cost structure. The firm projects the adjusted EBITDA margin to reach 69.3% by FY2029 and expects EPS to grow about 35% per year from FY2026‑FY2029.
What This Means for Retail Investors
The stock’s rise shows market confidence in Groww’s growth trajectory despite the profit dip. If revenue continues to grow faster than costs, margins could expand further, supporting the higher price target set by analysts.
Investors should watch the company’s ability to sustain its market‑share gains and manage cost growth, especially in marketing and staffing.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.