Groww Q4 FY26: Market share gains meet operating leverage

Groww closed Q4 FY26 with a sharp step-up in profitability, powered by scale, higher activity across trading products, and visible operating leverage. Consolidated total income reached ₹1,535.5 crore, up 81% year-on-year and 22% quarter-on-quarter. EBITDA rose to ₹938.7 crore, up 142% YoY, while PAT increased to ₹686.4 crore, up 122% YoY.

A key theme in the quarter was margin expansion as revenue growth outpaced largely fixed cost lines. The company also changed parts of its disclosure approach. It shifted to reporting EBITDA instead of Adjusted EBITDA, stating that merger-related one-offs are now beyond one year. It also revised the methodology for certain market share calculations in retail cash and retail derivatives turnover, which impacts comparability across periods.

Platform scale: users up, assets steady despite mark-to-market

Groww ended the quarter with 21.6 million total transacting users, up 25% YoY and 6% QoQ. Active users were 16.7 million. Total customer assets stood at ₹3.0 trillion, up 36% YoY, but down 1% QoQ.

Management attributed the QoQ decline in customer assets primarily to market movement. Q4 net inflows were ₹250 billion, but market movement was negative ₹283 billion, resulting in a net decline of ₹33 billion in total customer assets.

The company also highlighted improving product attachment among active users, citing attach rates of 72% for stocks, 60% for mutual funds, and 10% for equity derivatives.

Financial highlights (Consolidated)

Unit economics: leverage shows up across cost buckets

Groww’s “platform economics” table (excluding Fisdom and Growwmf) shows strong operating leverage versus Q4 FY25. Revenue rose from ₹799.4 crore to ₹1,468.4 crore, while cost to serve increased marginally in absolute terms but declined meaningfully as a percentage of revenue. Cost to grow and cost to operate also fell as a share of revenue.

Platform EBITDA (excluding Fisdom and Growwmf) increased to ₹970.4 crore with an EBITDA margin of 66.1%, compared with 50.6% in Q4 FY25.

This margin profile is supported by the company’s claim that much of the cost base is fixed in nature, allowing profitability to scale as revenues rise. Management reiterated on the call that margin expansion is correlated with the pace of revenue growth, and avoided giving a fixed margin target.

Revenue mix and market share: derivatives remain the largest contributor

Groww disclosed total income mix by product in percentage terms for Q4 FY26. Equity derivatives remained the dominant contributor at 55% of total income. Stocks contributed 16%, while newer and scaling categories like commodity derivatives and MTF contributed 4% and 5% respectively.

Based on the disclosed mix and Q4 FY26 total income, the implied income contribution by product is directionally as follows (computed strictly using the company’s percentage mix):

Management noted that volatility had a more pronounced impact on derivatives activity, which helped lift the segment’s share. It also pointed to strong traction in newly launched segments such as MTF and commodities.

On market share, the company reported improvements across major products when comparing Q4 FY26 with Q4 FY25.

• Mutual funds: MF SIP inflows market share increased to 14.0% from 12.3%
• Stocks: Retail cash ADTO market share increased to 15.7% from 12.1%
• Equity derivatives: Retail derivatives premium ADTO market share increased to 10.6% from 6.8%
• MTF: MTF book market share increased to 2.7% from 0.9%

The company also clarified a change in how it computes market share for retail cash and retail premium turnover. It now divides by exchange turnover multiplied by two, citing the presence of two counterparties in every trade.

Volatility cuts both ways: activity lifts, but risk costs rise

A recurring management message across the letter and the call was that volatile markets increase user activity, particularly in derivatives and commodities, but can also raise costs. The company cited risk-related costs as a key driver behind the rise in “cost to operate” during Q4.

Management attributed the higher “cost to operate” to two factors: risk-related costs due to volatility and higher G&A spend, including CSR and M&A-related expenses. On the call, it elaborated that certain negative balances emerged during sharp commodity movements in February and during stock volatility in March, and these were accounted for in the P&L.

This is an important nuance for investors. While volatility can create a revenue tailwind for transaction-driven products, it can also stress risk systems and increase loss provisions or operational expenses.

Subsidiaries: losses persist, timeline for profitability disclosed

Groww disclosed that consolidated EBITDA was lower than “platform EBITDA” because two newer businesses are currently loss-making.

• Fisdom loss in Q4 FY26: ₹10.2 crore
• Growwmf (AMC business) loss in Q4 FY26: ₹21.4 crore

Management said Fisdom is in early integration after being acquired in October 2025 and is expected to be profitable in FY28. For Growwmf, it said the business is still sub-scale and profitability requires AUM to grow 5 to 6 times over the next few years.

The company also indicated that it is investing in wealth offerings and has launched Groww W for affluent and HNI customers and Groww Prime for mass affluent customers. However, it did not provide revenue disclosure for these lines in the documents.

Capital deployment: earnings routed into lending books

Groww generated PAT of ₹686.4 crore in Q4 FY26 and stated it is deploying earnings (including proceeds from fundraise) to scale lending on its balance sheet within broking and consumer credit. It disclosed the quarter’s deployment amounts as:

• MTF: ₹506.9 crore
• LAS and PL: ₹105.7 crore

This points to an ongoing strategic emphasis on credit products alongside broking and distribution. The company also stated that its credit business contributed 4.1% of consolidated PAT in the quarter, though it did not provide a detailed P&L split.

Takeaways

Groww’s Q4 FY26 print reinforces two things. First, the platform is still gaining market share across its scaled products, helped by retention and wider product adoption. Second, operating leverage is now clearly visible in reported numbers, with platform-level EBITDA margins expanding as revenue growth outpaces cost growth.

At the same time, the disclosed revenue mix shows a continued dependence on equity derivatives, which benefits from volatility but also carries higher risk and volatility-linked costs. The next phase of the story will likely be shaped by how steadily the company can scale wealth and asset management, how it manages risk costs in volatile markets, and how durable its market share gains remain as industry growth cycles turn.