'We Are At An Inflection Point': Groww Flags October User Uptick After Months Of Decline
In addition, Groww in its investor presentation said its active users rose 3.2% quarter-on-quarter, led by growth in new user acquisition.
Investment platform Groww after months of decline saw a rise in its active users led by new user additions, its parent company Billionbrains Garage Ventures Ltd. said in a letter to investors on Friday.
The company in July, August and September had reported a decline in active users but it continued to hold the largest client base. After months of decline, Groww in October saw the number rising. Its total active users stood at 1.48 crore, making Groww the country’s largest brokerage in terms of client base.
In addition, the company in its investor presentation said its active users rose 3.2% quarter-on-quarter, led by growth in new user acquisition. Its total transacting users also rose 5% quarter-on-quarter to 1.9 crore in the quarter ended September.
It also saw its market share rise to 26.6% in comparison to 25.6% in the same quarter last year.
However, Groww's NSE Active Clients declined to 1.19 crore from 1.32 crore in January 2025. During the quarter under review, the industry NSE Active Users fell from 50.2 million to 45.3 million.
“NSE Active Clients is a lag metric, including anyone who has undertaken any transaction in the last twelve months, and any decline is observed with a delay. We already saw growth in our NSE Active Users in October and our market share grew to 26.6% from 25.6% in Q2 FY25 - we believe we are at an inflection point,” the company said.
The newly listed company said that India’s potential for long-term growth in retail investing remains vast.
“In India, presently there are 45 Mn investors (5% of the adult population); if we compare to developed nations, the participation is still at a nascent stage. A recent SEBI Investor Survey highlighted a significant awareness-to-participation gap- 63% of Indian households (213 million) are aware of at least one securities market product, but the actual participation stands at just 9.5% (32.1 million households). Also, 22% of aware non-investors expressed an intent to invest within the next year,” the company said in its shareholders’ letter.
“We believe that these prospective users are waiting on the sidelines for the right time and opportunity to enter the markets,” it added.
Groww's profit rose 24.6% to Rs 471 crore in the second quarter of this financial year. This is in comparison to profit of Rs 378 crore in the previous quarter of this fiscal, according to its stock exchange notification on Friday.
Groww's total income rose 13% in the quarter ended September to Rs 1,071 crore in comparison to Rs 948 crore in the previous quarter.
Revenue advanced by 12.7% quarter-on-quarter for the three months ended September, reaching Rs 1,019 crore. Operating income, or earnings before interest, taxes, depreciation, and amortization rose 25%quarter-on-quarter to Rs 1019 crore. The Ebitda margin expanded to 59.3%.
Shares of Groww were trading 2.09% higher at Rs 159.99 apiece on the NSE at 1:23 p.m., while the benchmark Nifty50 stood at 26,116.40, down 0.29%. The stock is trading 42.8% above its listing price of Rs 112 apiece.
