Financial Performance Highlights

Consolidated Performance Q2 FY27:

  • Total Income: Grew 44% Year-over-Year (YoY)
  • Profit After Tax (PAT): Increased 54% YoY
  • PAT Margin: 47% (improved +3.0 percentage points YoY)
  • Consolidated Expenses: Increased 29% YoY

Key Business Metrics

User and Asset Growth:

  • Total Transacting Users: 2.4 Crore, representing +27% YoY growth
  • Total Customer Assets: ₹3.9 Lakh Crore, representing +46% YoY growth
  • New Transacting Users (NTUs) Added: 11 lakh during the quarter

Product Performance:

  • Equity IPO Applications: 42 lakh users applied via Groww platform
  • IPO Market Share: 22% market share in total allotments
  • Increased contribution from MTF (+5.5pp YoY) and Commodity Derivatives (+6.0pp YoY)
  • Equity Derivatives revenue declined 14.3% Quarter-over-Quarter (QoQ)

SEBI Closing Auction System Impact

The Closing Auction System (CAS) was implemented effective August 3, 2026, replacing the VWAP method with a 20-minute closing auction (3:15 PM to 3:35 PM). The company attributes the QoQ decline in Equity Derivatives revenue primarily to CAS implementation, noting this was in-line with industry-wide declines. SEBI has published a consultation paper proposing to delink derivatives settlement from CAS closing prices, which the company believes could help normalize trading activity if implemented.

Expense Breakdown

The total expenses comprise Cost to Serve, Cost to Grow, and Cost to Operate (excluding Groww AMC).

  • Cost to Serve increase driven by higher tech costs due to more trading days, one-time client reimbursements for abnormal trades (stemming from operational issues at a third-party Market Infrastructure Institution), and inflation in compute costs due to AI adoption
  • Cost to Operate included ₹5 crores of CSR expenses in Q2, with approximately ₹28 crores expected in H2 FY27
  • Inflation-driven costs are expected to remain part of the operational baseline run rate

Investments and Cash Deployment

The company received an investment of ₹580 crores during the quarter from State Street Global Advisors, Inc. Cash was deployed into:

  • MTF, PL and LAS books: ₹1,915 crores
  • Debt repayment: ₹203 crores

Cash Balance Movement:

  • Start of H1 FY27: ₹3,893 crores
  • End of H1 FY27: ₹3,849 crores

Cash balance includes Fixed Deposits, Investments in Mutual Funds, Investment in Securities including Government Securities and NCDs.

Wealth Business Update

The company completed the Fisdom integration during the quarter, enabling wealth offerings across multiple platforms:

  • Groww: Bonds and MF Prime
  • W: Mutual Funds, Insurance, AIF, PMS, in-house MF PMS (supported by wealth partners)
  • Fisdom: Mutual Funds (supported by bank partners)
  • Wealth Assets crossed ₹10,000 crores

Groww AMC Performance

Assets Under Management (AUM):

  • Total AUM: ₹7,179 crores (145% YoY growth from ₹2,928 crores)
  • Actively Managed AUM: Increased from 47% to 57% of total AUM

Financial Performance:

  • Revenue: Grew 131% YoY
  • Bottom-line: -₹8.3 crores

Metric Definitions and Changes

The company changed revenue classification to better reflect business evolution:

  • Treasury renamed to Other Income
  • IPO and BSDA revenue moved from Stocks revenue to Other Operating Income
  • Delayed payment charges moved from Other Operating Income to Float

Stocks revenue comprises brokerage (70-75% of Stocks revenue) and other revenue (25-30%) which includes DP, DDPI, pledge charges and autosquareoff.

Forward-looking Statements

The document contains forward-looking statements regarding business objectives, strategies, and future performance, subject to risks and uncertainties including regulatory changes, technological changes, and general economic conditions.

Non-GAAP Measures

The company uses non-GAAP measures including EBITDA, PAT Margin, and various product metrics for operational evaluation, noting these should be considered supplemental to Ind AS financial measures.