Highlights

• Groww reported total income growth of 81% YoY in Q4 FY26.
• EBITDA increased 142% YoY, while PAT rose 122% YoY in the quarter.
• Total transacting users reached 21.6 million with steady platform activity growth.

Billionbrains Garage Ventures Limited (NSE:GROWW), which operates the Groww platform, reported strong financial growth in Q4 FY26. Total income stood at ₹15,355 million, showing an 81% year-on-year increase and 22% quarter-on-quarter growth. EBITDA rose 142% YoY to ₹9,387 million, supported by operating leverage. Profit after tax (PAT) increased 122% YoY to ₹6,864 million, with margins expanding during the quarter.

User base and platform activity expand

The platform continued to grow its user base during the quarter. Total transacting users reached 21.6 million, increasing 25% YoY. Active users stood at 16.7 million. Customer assets on the platform reached ₹3.0 trillion, growing 36% YoY, though slightly lower sequentially due to market movement. Net inflows during the quarter were ₹0.25 trillion, indicating continued user participation.

Product segments show mixed trends

Groww reported increased activity across multiple product categories. In mutual funds, SIP inflows grew 34.8% YoY. In stocks, turnover per user increased 25.4% YoY. Equity derivatives saw higher activity, with average orders per user rising 43.1% YoY. Commodity derivatives also showed growth, with active users increasing over 50% sequentially.

However, customer assets declined slightly on a quarter-on-quarter basis due to mark-to-market impact during volatile market conditions. The company noted that user engagement remained stable despite these changes.

Revenue mix shifts toward derivatives

During Q4 FY26, the contribution of equity derivatives to total income increased slightly to 54.6%. Newer segments like margin trading facility (MTF) and commodities gained traction, contributing more to overall revenue. Growth in these segments was supported by higher user adoption and increased trading activity during volatile market conditions.

Cost structure and profitability trends

Operating costs increased during the quarter, mainly due to higher risk-related expenses and general administrative spending. Cost to operate also rose due to employee-related expenses and system improvements. Despite this, revenue growth outpaced cost increases, leading to margin expansion.

The company also highlighted that its credit business contributed around 4.1% to consolidated PAT during the quarter, showing early-stage contribution from this segment.

Market conditions impact outlook

Groww noted that market volatility during the quarter increased trading activity, especially in derivatives and commodities. However, sustained market weakness and continued selling by foreign investors may impact investor sentiment and future inflows.

Technical Summary

Billionbrains Garage Ventures Limited (NSE:GROWW)  is trading near ₹211.42, up around 7.81%, and continues to remain above the 51-day SMA near ₹169.59, while the 14-day RSI near 71.77 points. Immediate support is placed in the ₹180.00–170.00 zone, while resistance is seen near the ₹220.00–240.00 range.

Source: TradingView

Key Risks

• Market volatility may reduce customer assets due to mark-to-market losses.
• High dependence on trading activity can impact revenue stability.
• Regulatory changes may affect broking and financial services operations.
• Rising operating costs may impact margins if revenue growth slows.

Summary

Groww reported strong financial growth in Q4 FY26 with sharp increases in income, EBITDA, and profit. User base expansion and higher activity across products supported performance. While market volatility helped trading activity, it also impacted customer assets. Cost increases were visible, but margins improved due to higher revenue growth. Future performance may depend on market conditions and user engagement trends.

FAQs

1. What drove Groww’s income growth in Q4 FY26?
   Income growth was driven by higher user activity, increased trading volumes, and expansion in derivatives and new product segments.
2. Why did customer assets decline slightly in Q4 FY26?
   Customer assets declined due to mark-to-market impact from market volatility despite positive net inflows during the quarter.
3. What are the key growth areas for Groww going forward?
   Key growth areas include equity derivatives, mutual funds, margin trading facility, and expansion of its credit business offerings.