Groww Receives Buy Call As Motilal Oswal Bullish Amid Retail Investment Boom — Check Target Price

Groww-parent Billionbrains Garage Ventures is a key beneficiary of India's accelerating retail investment wave, believes brokerage firm Motilal Oswal Financial Services, initiating coverage on the counter. The firm recommends a 'buy' call on the stock, setting a target price of Rs 185 and an upside potential of 19%.

Groww has rapidly transformed from a zero-revenue mutual fund distributor into India's largest retail broking platform on NSE active clients basis, achieving this position within just four years, as per the note. As of Nov. 2025, it commanded a 26.8% market share, nearly 9 percentage points ahead of the second-largest player, alongside significant shares of 25.8% in cash equities and 17.3% in derivatives.

Motilal Oswal notes that Groww's revenue has tripled from FY23 to FY25, and is expected to double again over FY25–28. A deliberate shift is underway to diversify beyond broking — the contribution of broking revenue is expected to drop from 85% in FY25 to 67% in FY28 as MTF, commodities, LAS/LAMF and wealth management scale up. Ebitda margins are forecast to increase from 59% in FY25 to 66% by FY28, aided by operating leverage and a largely fixed cost base.

The report situates Groww within a broader structural shift in India's capital markets. Demat penetration remains around 14% versus 62% in the US, even as digital-first discount brokers such as Groww, Zerodha and Angel One increased their NSE active client share from 6–8% in FY15 to 76–78% currently.

Retail participation has surged since FY20, with cash ADTO doubling and F&O active clients rising from 2.5 million in April 2023 to 5.3 million in June 2024, before easing to 3.4 million after regulatory changes.

Groww's affluent customer base has grown around two times faster than the broader platform, says the note. The acquisition of Fisdom, Motilal Oswal adds, accelerates its move into wealth management with offerings spanning MF advisory, PMS, AIF, PE and unlisted securities, which are expected to contribute around 7% of revenues by FY28.

The brokerage concludes that Groww is positioned to compound earnings in India's underpenetrated capital market, supported by rising cash yields, deepening product penetration, affluent client monetisation and a tech-led, low-cost operating model. Key risks flagged include additional F&O regulations and heightened competition.

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