Groww Q1 EBITDA doubles to Rs 971 crore, shares gain 8%
Indian trading platform Groww posted a 101% jump in first-quarter EBITDA, driven by new product adoption that helped it buck an industry-wide brokerage slowdown.
Groww shares gained 8% after the Indian trading platform reported first-quarter EBITDA of Rs 971 crore, more than double the Rs 483 crore recorded in the same period a year earlier. Revenue from operations surged 66% year-on-year to Rs 1,504 crore, while consolidated total income grew 63.3%. Net profit reached Rs 735 crore. Sequential growth was more muted, with EBITDA edging up just 3% from the prior quarter's Rs 939 crore.
The sharp year-on-year margin expansion underscores a strategic shift toward higher-fee financial instruments. Management attributed the income growth primarily to continued traction in margin trading facilities and commodity derivatives. This product diversification proved critical during the June quarter, allowing Groww to capture market share while navigating an industry-wide slowdown in retail trading activity.
Commodity derivatives are gaining notable traction on the platform. Groww reported 435,000 active users for this segment, marking a 10.7% increase from the previous quarter. This translates to an attach rate of 2.6% across its overall active user base, a figure investors will likely monitor for further expansion. The company also highlighted its rollout of artificial intelligence across its operations, pointing to a new AI-powered mutual fund advisory product called MF Prime.
Despite planning significant capital expenditure on artificial intelligence, Groww expects its scale to shield profit margins from any material impact. The company also noted that its recent client growth was supported by improved product quality and higher customer retention rates, adding a net 115,000 clients in the quarter.
The quarterly results validate the market's recent optimism toward the stock. Shares have climbed 36.11% in the current calendar year and are up 28.74% over the past six months. For investors, the primary takeaway is that Groww is successfully monetizing its retail base beyond basic equity trades, creating a more resilient revenue structure.
