Groww Shares In Focus: Key Things To Watch Ahead Of Q2 Results

Billionbrains Garage Ventures Ltd., parent company of trading application Groww, faces a major test as it prepares to announce its second quarter earnings on Friday, its first results after a blockbuster IPO and a dramatic stock reversal.

The numbers are expected to set the tone for the stock’s next leg.

Broking Revenue — Will the YoY Decline Continue?

Groww’s broking business saw exceptional growth in the previous year, creating a high base. Since 84% of its revenue comes from stock broking, any slowdown in trading activity could hurt earnings.

The key question is whether the decline continues, signalling a structural slowdown, or it will show some stability.

Market Share Gains

October NSE data showed another month of increasing market share for Groww. Investors will watch if this momentum is reflected in quarterly performance despite the revenue moderation.

Profit

With new-age players often reporting volatile profits, any exceptional items impacting Profit will be scrutinised, especially given heightened valuation sensitivity.

Will Ebitda Margins Stay Above 50%?

Sustaining 50%-plus Ebitda margins will be a key sign that the business has operating leverage and discipline, not just momentum.

Investors will look beyond the headline numbers to see whether Groww can deliver sustained profitability and market leadership, or whether the stock’s supercharged post-IPO rally got ahead of itself.

While Groww has the highest active clients at 1.2 crore, Zerodha and Angel One follow closely with 70 lakh and 68.5 lakh respectively. Motilal Oswal has 9.3 lakh active users.

Groww also has 125% three-year revenue CAGR, higher than the 32% three-year CAGR for Zerodha and Angel One.

However, when it comes to net profit margins, Zerodha take lead with 49.80% followed by Groww and Motilal Oswal.

Groww’s post-listing dream run hit turbulence this week. The stock has fallen nearly 20% from record highs, wiping out over Rs 22,000 crore in market capitalisation in just two sessions.

The slide comes amid valuation concerns, profit-booking, and the stock’s brief entry into the auction segment due to excessive volatility.

Despite the sell-off, Groww still trades well above its IPO price of Rs 114, giving comfort to long-term investors but raising questions about whether the peak froth has cooled.

The next potential trigger for the stock is the Dec. 10 lock-in expiry, when 2% of equity shares become free to trade. While the quantum isn’t large, any selling by pre-IPO investors could add near-term supply pressure—especially after the recent correction.