Groww Posts Strong Profit Growth Amid Revenue Challenges
Indian trading platform Groww has delivered a mixed financial performance in the second quarter of fiscal year 2025-26, reporting significant profit growth despite declining revenue and active client numbers. The company's consolidated net profit surged to ₹471 crore, marking a 12.18% year-on-year increase from the ₹420 crore recorded in the same quarter last year.
Revenue and Client Base See Decline
While profits climbed upward, Groww faced headwinds on the revenue front. The company's consolidated revenue from operations fell by 9.4% to ₹1,018 crore in Q2 FY26, down from ₹1,125 crore in the corresponding quarter of the previous fiscal year. This revenue contraction comes alongside a reduction in the platform's active client base on the National Stock Exchange.
The NSE active client count dropped to 11.9 million in Q2 FY26 from 12.3 million in Q2 FY25, indicating some challenges in user retention or acquisition during the quarter. This decline in both revenue and active users presents an interesting contrast to the profit growth story.
First Earnings After Successful BSE Listing
These quarterly results hold special significance as they represent Groww's first financial disclosure since its listing on the Bombay Stock Exchange on November 12. The company made a spectacular market debut that saw its shares jump 47% since listing, reflecting strong investor confidence in the platform's long-term prospects.
The robust market performance following its BSE debut had set high expectations among investors and market analysts. While the profit growth aligns with this positive sentiment, the revenue decline and shrinking client base may prompt closer examination of the company's sustainable growth strategy.
Groww's ability to maintain profitability amid revenue pressures suggests effective cost management and operational efficiency improvements. However, the dual challenges of revenue contraction and declining active users will likely be key focus areas for the company's management in the coming quarters as they work to balance growth with sustainability in India's competitive fintech landscape.
