- Groww reported a 94.2% rise in consolidated net profit to Rs 735 crore in June quarter
- Revenue grew 66% to Rs 1,501 crore with EBITDA margin expanding to 64.6% from 53.4%
- Active user additions and market share gains moderated due to lower market volatility
Groww's June-quarter earnings showcased another strong quarter of profit growth, but Citi believes the investment platform's next phase of expansion will increasingly depend on new products rather than its core broking business.
The brokerage maintained its 'Buy' rating on Billionbrains Garage Ventures, the parent of Groww, and raised its target price to Rs 255 from Rs 230, while cautioning that business momentum has begun to soften.
Groww reported a 94.2% year-on-year jump in consolidated net profit to Rs 735 crore, while revenue rose 66% to Rs 1,501 crore. EBITDA nearly doubled to Rs 971 crore, with the EBITDA margin expanding to 64.6% from 53.4% a year earlier.
Despite the strong financial performance, Citi said underlying operating trends were more mixed.
The brokerage noted that active user additions in the broking business moderated during the quarter, reflecting lower market volatility compared with previous quarters. While Groww continued to add customers, the pace of market share gains also slowed.
ALSO READ: Groww Q1 Result: Net Profit Rises 94% To Rs 735 Crore, Revenue Up 66%
The brokerage expects Groww's share of India's retail cash market to continue rising, but at a slower pace than seen over the past year. It estimates the company's market share increased to around 15.1% in the June quarter from 10.6% a year ago, although sequential gains have become more gradual.
Citi also highlighted that margin trading facility (MTF) remains a bright spot. Growth in the segment was driven by larger ticket sizes rather than a sharp increase in customer adoption, helping support higher cash yields during the quarter.
Looking ahead, Citi believes the company's expanding product portfolio—including offerings beyond equity broking—could become a more meaningful growth driver. It said attachment rates for new products will be an important metric to monitor as Groww looks to diversify revenue streams.
The brokerage also pointed to continued cost discipline and operating efficiencies, which supported healthy profitability despite softer sequential growth in adjusted EBITDA.
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