Groww Q4FY26: Profit up 122%, broker calls split

Shares jump after Q4 results

Shares of Billionbrains Garage Ventures, the listed parent of online brokerage Groww, rose as much as 3.6% to a day’s high of ₹203 on the BSE on Tuesday after the company reported a sharp rise in quarterly earnings. The move came as investors reacted to a March-quarter performance that showed strong revenue growth and wider operating margins. The stock reaction also reflected continued focus on trading-linked businesses, especially derivatives. Brokerages, however, remained divided on valuation versus growth.

Stock performance since listing

Groww debuted on the stock exchanges on November 12, 2025. Since the listing, the stock has surged 59% on the BSE, according to the article. Including the reported intraday gain around the results day, the stock has risen 108.75% over its IPO issue price of ₹100 per share. The company was cited as having a market capitalisation of ₹1.28 trillion.

Q4FY26 profit and revenue: key numbers

For the fourth quarter, consolidated net profit rose 122% year-on-year to about ₹686 crore, with another figure in the provided text stating net profit at ₹690 crore for the March 2026 quarter. Revenue from operations climbed 87% year-on-year to ₹1,505 crore. EBITDA surged 142% year-on-year to about ₹939 crore, with another figure in the text citing EBITDA at ₹940 crore. The quarter’s performance was presented as a margin expansion story alongside growth in trading activity.

Operating leverage drives profitability

The company’s profitability improvement was attributed to revenue rising faster than costs that were described as largely fixed. That dynamic highlighted operating leverage across segments. The article also cited an EBITDA margin expansion to 62.3% from 48.4% in Q4FY25. The combination of higher revenue and cost discipline was positioned as a key reason the quarter stood out.

Derivatives continue to power income

Trading activity, particularly in derivatives, continued to drive the company’s revenue in Q4. Equity derivatives contributed 54.6% of total income in the quarter, up from 53.5% earlier. The rise was linked in the article to higher volatility and trading volumes. This revenue mix keeps results closely tied to market activity and participation.

Customer assets and flows stayed strong

Customer assets on the platform increased 36% year-on-year to ₹3 lakh crore. The article noted a slight sequential dip, attributed to mark-to-market losses during the quarter. Even with that dip, net inflows remained robust at ₹25,000 crore. These metrics were highlighted as indicators of platform scale and continuing customer engagement.

Newer segments gain share: MTF, commodities, AMC

Beyond core broking, newer segments such as the margin trading facility (MTF) and commodities gained share in overall revenues, according to the article. MTF revenue rose 42% quarter-on-quarter to ₹110 crore (₹17 crore in Q4FY25). The MTF book scaled to ₹2,810 crore at the end of Q4FY26 (₹2,310 crore in Q3FY26), and the company’s MTF market share rose to 2.7% even as the industry MTF book contracted sequentially. The AMC business AUM reached ₹4,000 crore, and the company said it expects the AMC business to be profitable with AUM likely scaling 5-6x over the next few years.

Brokerage views: Buy calls cite recovery and product breadth

Jefferies maintained a Buy rating and raised its target price to ₹225, implying an upside of about 15% from the referenced levels. The brokerage said Groww showed a stronger recovery in order volumes and better profitability than Angel One, despite more than a year of headwinds from Sebi’s regulatory changes in F&O and weak equity markets. Motilal Oswal reiterated its Buy rating and raised its target price to ₹235, implying upside of around 20%, and highlighted strong revenue growth supported by user adoption and activation. Citi also maintained a Buy rating with a target price of ₹230, pointing to higher trading volumes and volatility, along with the scale-up of the MTF book and new product launches.

Neutral and Sell: valuation becomes the swing factor

UBS maintained a Neutral rating with a target of ₹210, saying Q4 was aided by operating leverage and market share gains, while cost controls offset expansion spending. JM Financial maintained a Sell rating with a target price of ₹150, implying a downside of 23.5%. JM Financial still projected EPS growth of 54% and 30% for FY27 and FY28, respectively, raised its FY27E EPS estimate by 3%, and kept FY28E estimates unchanged. However, it argued that Groww’s expected earnings CAGR of 41% over FY26 to FY28E versus 32% for Angel One justifies only a 10% premium, and it flagged valuations at 38x and 29x FY27E and FY28E EPS, respectively.

What the company flagged about the near-term environment

Looking ahead, the company said short-term volatility could continue to support trading activity. But it also cautioned that prolonged market weakness may affect investor sentiment, which could impact new user additions and inflows over time. This framing keeps focus on how activity-sensitive businesses behave through different market phases.

Key facts at a glance

Conclusion

Billionbrains Garage Ventures’ Q4FY26 numbers showed rapid profit growth, strong EBITDA expansion, and a revenue mix still led by derivatives activity. The stock rose on the results, but brokerage views split clearly between growth momentum and valuation discipline. Near-term focus remains on trading conditions, the pace of scaling newer segments like MTF and commodities, and how costs track as the company invests in additional businesses.