Groww Q2 Earnings Show Profit & Margin Growth, Stock Gains 5 percent Amid Operational Efficiency & Improved User Metrics

Mumbai: Shares of Billionbrains Garage Ventures Ltd.—the parent company behind Groww—jumped more than 5 percent on Friday, November 21, right after the company dropped its September quarter results. Just before that, the stock had taken a beating, falling almost 20 percent in two days as investors worried about valuation and free-float issues. But once people dug into the Q2 numbers and saw stronger profits and better margins, the mood shifted.

Groww posted a net profit of Rs 471.3 crore for the September quarter, up 12 percent from Rs 420.1 crore last year and 24.6 percent higher than the Rs 378 crore it made in the June quarter. A big chunk of that improvement came from 'other income,' which climbed to Rs 52 crore from Rs 34.6 crore a year ago.

Revenue from operations actually dropped 9.5 percent year-on-year, landing at Rs 1,018.7 crore (down from Rs 1,125.3 crore), but it grew 12.7 percent if you just look at the last quarter. EBITDA came in at Rs 603.3 crore, which is up 9.7 percent from last year and 25 percent higher than the previous quarter. Margins looked much better too, rising to 59.3 percent—a big jump from 48.9 percent last year and 53.4 percent in Q1 FY26.

Management pointed out that NSE Active Clients is a bit of a delayed indicator since it counts users who’ve traded anytime in the last 12 months, so you don’t see changes right away. Still, October brought some good news—active user numbers went up, and Groww’s market share climbed to 26.6 percent, up from 25.6 percent in Q2 FY25.

Operating costs dropped as well. Employee expenses fell 9 percent, so now employee costs are just 12 percent of revenue. That’s way better than competitors like Angel One, where the ratio stands at 23 percent.

The company says it’s hit an inflection point—operational efficiency, better user engagement, and tight cost control are all coming together. Analysts seem to agree, pointing out that Groww’s strong margins and performance metrics are setting it apart in the fintech space. That’s helped the stock bounce back after some wild swings right after the listing.

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