Consolidated Financial Highlights

  • Total Income: Grew by 63.3% Year-over-Year (YoY).
  • Profit After Tax (PAT): Increased by 94.3% YoY.
  • PAT Margin: Stood at 47.5%, representing a YoY expansion of 7.6 percentage points.

Platform Performance Metrics (Q1 FY27)

  • Total Transacting Users: 2.2 Crore, representing a +4% Quarter-over-Quarter (QoQ) and +24% YoY growth.
  • Active Users: 1.7 Crore.
  • Total Customer Assets: ₹3.6 Lakh Crore, representing a +22% QoQ and +38% YoY growth.
  • Q1 Net Inflows: ₹23,000 Crore (defined as investments by users in the quarter less outflows at cost price).

Key Business Developments & Operational Highlights

  • Market Leadership: The company extended its market leadership across categories. It added 115k net NSE Active Clients in Q1, while the overall industry saw a net decline of approximately 257k clients.
  • Mutual Funds: Remains the largest distribution platform for direct Mutual Funds in India, with ₹1.9 lakh crore of direct MF AUM. SIP Inflows grew 32% YoY, which is double the industry's growth rate of 16%.
  • Stocks: Retail Average Daily Turnover (ADTO) market share decreased QoQ to 15.1% (but was 3.3pp higher YoY). This was attributed to the implementation of improved risk controls. Despite this, Stocks ADTO increased 48.0% YoY.
  • Commodity Derivatives: Scaled to a 28.6% retail market share in Notional ADTO across MCX & NSE. The platform has 435k Commodity Derivatives Active Users (+10.7% QoQ), implying an attach rate of 2.6% of overall Active Users.
  • Margin Trading Facility (MTF): The MTF Book grew 264.4% YoY. Market share calculation methodology was updated to use the combined outstanding MTF Books of NSE and BSE; on this basis, Q1 market share is stated while Q4 FY26 market share would have been 2.6% (vs. 2.7% previously stated based on NSE only).
  • Product Velocity & AI: Product shipping velocity remained high, aided by leveraging AI across the organisation. An AI-powered mutual fund advisory product 'MF Prime' was launched.
  • Wealth & Credit: The company continues to scale its bonds offering and 'W' wealth advisory offering. In Consumer Credit, disbursements through Groww Creditserv Technology Private Limited (GCS) grew 26.1% QoQ. The Loans against Securities (LAS) product made up over 35.0% of disbursements and over a third of on-book disbursements. The secured credit book now accounts for 18.5% of the total book, up from 13.5% last quarter, with the overall credit book growing 11.8%.
  • Asset Management Company (AMC): Groww AMC's Assets Under Management (AUM) grew approximately 140% over the last year. SEBI and CCI approval has been received for the strategic investment by State Street Global Advisors into Groww AMC.

Revenue Diversification

  • In Q1, revenue contribution increased from MTF (+1.1pp QoQ) and Commodity Derivatives (+0.4pp QoQ).
  • The company expects the trend of revenue diversification away from Equity Derivatives to continue.

Forward-Looking Commentary (Company Statements)

  • The company believes operating leverage from economies of scale will continue to play out as it grows.
  • It believes it is best-positioned to spearhead the use of AI in investing and will make significant investments in AI, but does not expect any material impact on margins due to its scale.
  • The strategy for Groww AMC is to capture whitespaces by manufacturing differentiated mutual funds and ETFs based on customer demand, including through a partnership with State Street Global Advisors for cross-border offerings.

Glossary & Metric Definitions

The document includes an extensive glossary defining key operating and financial metrics, including Total Transacting Users, Active Users, Total Customer Assets, Revenue from Operations, Cost to Serve, Cost to Grow, Cost to Operate, Contribution Margin, EBITDA, and various product-specific KPIs like MF SIP Inflows, Stocks ADTO, and Commodity Derivatives Notional ADTO.

Disclaimer

The letter contains forward-looking statements subject to risks and uncertainties. It also notes the use of non-GAAP financial measures for supplemental informational purposes.