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Groww Surges on Q4 Earnings Beat
23 Apr
Summary
- Q4 net profit jumped 1.22 times year-over-year.
- Broking revenue rose 78% YoY to Rs 1,150 crore.
- Commodity derivatives revenue grew 39% QoQ.
Motilal Oswal has maintained a 'Buy' rating on Groww following a substantial Q4 net profit increase of 1.22 times year-over-year. This surge was primarily attributed to strong broking activity in Q4 FY26.
Groww's broking revenue escalated by 78% year-over-year to Rs 1,150 crore. This growth was propelled by a 64% rise in orders and an increase in revenue per order. The derivatives segment revenue climbed 74% year-over-year, benefiting from market volatility.
Commodity derivatives, launched in Q3 FY26, also experienced a 39% quarter-over-quarter revenue increase. Margin Trading Facility (MTF) revenue grew 42% QoQ, with Groww's MTF book expanding sequentially, leading to a market share rise.
International brokerage Jefferies likened Groww's product velocity to that of US peer Robinhood. They noted Groww's resilience, cross-selling ability, and profitability, stating that new initiatives led the Q4 earnings beat.
Jefferies anticipates a 29% EPS CAGR for Groww from FY26-29, driven by product velocity, client asset growth, expansion in MTF and wealth management, and margin expansion. They raised their target price to Rs 225, reiterating a 'Buy' rating.
