How did Groww stock performed in Q3 FY26?

Synopsis: Groww’s Q3 FY26 results are something of a mixed bag. Revenue rose 25% to Rs 1,216 crore; however, profits dropped 28% during the same period. Even though its user activity remains strong, its market share is holding steady. 

One of India’s leading discount broker houses, Groww, has just announced its financial results for the third quarter of FY26, and honestly, it is a mixed performance in some cases. In this article, we will dive more into the details of it.

With a market capitalisation of Rs 1,02,877 crore, the shares of Billionbrains Garage Ventures Ltd are currently trading at Rs 166.30 per share, up 2.2 percent from its previous day’s closing price of Rs 162.70 per share. Post it listing on the stock exchange in November 2025, the shares have delivered a return of 25 percent.

Q3 Financial Highlights

The revenue from operations for Billionbrains Garage Ventures stands at Rs 1,216 crores in Q3 FY26 compared to Q3 FY25 revenue of Rs 975 crores, up by 25 per cent YoY. Additionally, on a QoQ basis, it reported a growth of 19 percent from Rs 1,019 crore. 

The increase was primarily driven by a rise in equity derivatives activity, which accounted for the largest portion of the company’s income. More users participated, customer assets increased, and business volumes improved across the board this quarter.

Of the Total sales generated, it derived a large 53 percent of its revenue from Equity Derivatives, followed by 18 percent from Stocks, 7 percent from Float, 6 percent each from PL + LAS (Personal Loans, etc) and MTF, 4 percent from commodity derivatives and the remaining 3 percent each from treasury and other income.

Coming down to its profitability, the company’s net profit stood at Rs 547 crore in Q3 FY26, down from Rs 757 crore in Q3 FY25, which is a decline of 28 percent YoY. However, on a QoQ basis, it reported a net profit of Rs 471 crore, which is a growth of 16 percent.

Also, in Q3 FY26, Total Transacting Users grew by 25 percent YoY and 7 percent QoQ, reaching 2.04 crore. Additionally, Total Customer Assets grew by a staggering 39 percent YoY and 12 percent QoQ, reaching Rs 3 lakh crore.

Market Share Highlights

Coming down to its market shares, Groww’s market share increased to 13.7 percent in Q3 FY26 from 12.3 percent in Q3 FY25 in the Mutual Funds segment. In the case of stocks, its market share increased to 28.8 percent from 21.6 percent during the same period. In equity derivatives, its market share increased to 18.1 percent from 12.2 percent and in MTF (margin trading facility), it increased to 2 percent from just 0.7 percent.

Strategic Investments

In addition, Groww informed that it is increasing its investment in its subsidiary, Groww Asset Management Ltd (Groww AMC), by acquiring more shares. The company plans to invest up to Rs 282 crore, either in a single tranche or in parts, mainly to support Groww AMC’s working capital needs and future growth. After this investment, Groww will continue to fully own Groww AMC.

Additionally, Groww has signed an agreement with State Street Global Advisors (SSGA), which will bring in new investment for Groww AMC. SSGA will invest up to Rs 580 crore, partly by purchasing existing shares and partly by subscribing to new shares. As a result, Groww’s stake in Groww AMC may be diluted by up to 23 percent. However, SSGA’s voting rights will be capped at 4.99 percent. 

The deal is expected to close once all regulatory approvals are obtained, anticipated within six months from the agreement date.

In conclusion, Groww posted a strong Q3 where revenue rose 25 percent year-on-year as they continued expanding operations, largely due to equity derivatives. They’re also increasing their market share in stocks, mutual funds, and derivatives. User engagement remains robust: 2.04 crore users made transactions this quarter, and customer assets reached Rs 3 lakh crore.

However, profits fell 28 percent compared to last year. So, despite the revenue growth, higher costs or possible one-time expenses are putting pressure on earnings. 

The main question now is whether Groww can turn all this growth and user activity into steady profits. The focus now has to be on its next steps, especially its investment and major partnership in Groww AMC with State Street. This is expected to strengthen their mutual fund business and help them expand beyond just broking.

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