EBITDA for the quarter surged 142% YoY to Rs 939 crore, indicating strong margin expansion. The improvement in profitability was driven by faster revenue growth compared to largely fixed costs, highlighting operating leverage across segments.
Growth was supported by steady traction in users and platform activity. Total transacting users rose 25% YoY to 2.16 crore, while active users stood at 1.67 crore, as of March 31, 2026. Customer assets on the platform increased 36% YoY to Rs 3 lakh crore, though they saw a slight sequential dip due to mark-to-market losses during the quarter.
Net inflows remained robust at Rs 25,000 crore. Trading activity, particularly in derivatives, continued to power the company’s revenue. Equity derivatives contributed 54.6% of total income in Q4, up from 53.5% earlier, aided by higher volatility and trading volumes. Newer segments, such as the margin trading facility and commodities, also gained share in overall revenues.
Looking ahead, the company said short-term volatility could continue to support trading activity, but prolonged market weakness may affect investor sentiment, which could in turn impact new user additions and inflows over time.
Should you buy Groww shares?
Jefferies has maintained a Buy rating on Groww and raised the target price to Rs 225, indicating an upside of about 15%. The brokerage said Groww has demonstrated stronger recovery in order volumes and better profitability compared to Angel One, despite more than a year of headwinds from Sebi’s regulatory changes in F&O and weak equity markets. Over this period, Groww has shown greater resilience and a stronger ability to cross-sell products.
It also highlighted that Groww’s cash orders have grown sequentially over the past two quarters, while options orders in the last two quarters have exceeded levels seen in Q3FY25. In comparison, Angel One’s cash orders have continued to decline, and its options orders have only recently returned to pre-regulatory change levels.
Motilal Oswal has reiterated its Buy rating on Groww and raised the target price to Rs 235, implying an upside of around 20%. The brokerage highlighted that Groww continues to deliver strong revenue growth, supported by increasing user adoption and solid activation levels. Its core broking business is steadily gaining market share across segments, aided by recent product launches such as a margin trading facility and commodities, which are driving additional growth.
Offering a contrarian view, JM Financial has maintained a Sell rating on Groww with a target price of Rs 150, implying a downside of 23.5%. The brokerage remains constructive on the company’s growth prospects, projecting EPS growth of 54% and 30% for FY27 and FY28, respectively. It has raised its FY27E EPS estimate by 3% while keeping FY28E estimates unchanged.
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Despite this strong earnings outlook, JM Financial notes that Groww’s expected earnings CAGR of 41% over FY26–FY28E, compared with 32% for Angel One, justifies only a 10% premium in valuation. As a result, it believes current valuations, at 38x and 29x FY27E and FY28E EPS respectively, are ahead of any meaningful shift towards more stable, recurring revenue streams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)