The company reported a 122% year-on-year (YoY) rise in consolidated net profit to Rs 686 crore for the fourth quarter. Revenue from operations climbed 87% YoY to Rs 1,505 crore.
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.
Should you buy Groww shares?
Jefferies has maintained a Buy rating on Groww and raised the target price to Rs 225, which the company is now close to reaching. The brokerage said Groww demonstrated a 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 showed greater resilience and a stronger ability to cross-sell products.
It also highlighted that Groww’s cash orders grew sequentially over the past two quarters, while options orders in the last two quarters exceeded levels seen in Q3FY25. In comparison, Angel One’s cash orders continued to decline, and its options orders 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 8%. 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 raised its FY27E EPS estimate by 3% while keeping FY28E estimates unchanged.
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.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)