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Investment tech company Groww’s consolidated net profit jumped 54% to ₹724.7 Cr in the second quarter of FY27 from ₹471.3 Cr in the year-ago quarter. However, profit declined 1.4% from ₹735 Cr in the June quarter. Operating revenue rose 47.4% to ₹1,501.5 Cr during the September quarter from ₹1,018.7 Cr in Q2 FY26. Sequentially, it remained almost unchanged from ₹1,501.4 Cr. Growth in margin trading and commodity derivatives helped offset weakness in equity derivatives, keeping operating revenue steady sequentially. Groww attributed most of the decline in equity derivatives revenue to market adjustments following the introduction of the closing auction system (CAS). Notably, SEBI introduced CAS for F&O-eligible stocks on August 3, replacing the earlier volume-weighted average price (VWAP) method used to determine closing prices. “While our equity derivatives revenue declined 14.3% QoQ, the bulk of which we attribute to CAS, this was in-line with the decline that the industry has seen,” the company said in its Q2 shareholders’ letter. Including other income of ₹39 Cr, total income stood at ₹1,540.5 Cr, compared with ₹1,070.8 Cr a year earlier and ₹1,548.7 Cr in the preceding quarter. Consolidated EBITDA increased 60% to ₹969 Cr from ₹604 Cr a year earlier but slipped from ₹971 Cr in Q1 FY27. The sequential decline in profit came as other income fell from ₹47.3 Cr in Q1 FY27, while total expenses remained broadly flat and the tax bill edged higher. Groww’s total expenses increased 28.5% to ₹555.9 Cr from ₹432.6 Cr a year earlier. The company said its cost to serve increased during the quarter due to higher technology costs associated with more trading days, one-time reimbursements to clients for abnormal trades, and compute cost inflation linked to AI and other factors. The reimbursements totalled ₹13 Cr and stemmed from an operational issue at a third-party market infrastructure institution. Groww expects inflation-driven technology costs to remain part of its ongoing cost base. Groww’s Q2 Revenue Mix Groww’s income mix continued to diversify in Q2 FY27, with higher contributions from its margin trading facility (MTF) and commodity derivatives businesses. MTF’s share of total income rose to 10.1% from 8% in Q1 FY27, while commodity derivatives’ contribution increased to 6.2% from 4.9%. Meanwhile, equity derivatives’ share fell to 44.8% from 51.9%. The company also benefited from higher other operating income, supported by strong primary market activity during the quarter. Stocks contributed 17.4% of total income, compared with 17.8% a year earlier. Brokerage accounted for 70-75% of the stocks business’ revenue, with the remainder came from depository charges, pledge fees, and other services. Groww expects businesses with lower penetration, such as MTF and commodity derivatives, to grow faster and contribute a larger share of income in the coming quarters. Capital Deployment And Wealth Expansion Groww deployed ₹1,915 Cr into its MTF, personal loan, and loan-against-securities books during the first half of FY27. It also repaid ₹203 Cr in debt during the period. During the September quarter, it received ₹580 Cr from State Street Investment Management through an investment in its mutual fund arm, Groww AMC. After accounting for operating cash generation, the investment inflow, and capital deployment, Groww’s cash balance stood at ₹3,849 Cr at the end of H1 FY27 as against ₹3,893 Cr at the start of the period. On the operational front, Groww AMC’s assets under management rose 145% to ₹7,179 Cr from ₹2,928 Cr a year earlier. The share of actively managed AUM increased to 57% from 47%. The AMC’s revenue grew 131% YoY, although it reported a net loss of ₹8.3 Cr. Groww also said it completed the integration of Fisdom during the quarter, enabling it to offer wealth management products across its platforms. Shares of Groww were trading 0.90% lower at ₹192.05 on the BSE at 15:25 IST.
document fetched 2026-10-15 03:00 · canonical https://inc42.com/buzz/groww-q2-profit-jumps-54-yoy-to-%e2%82%b9725-cr-revenue-rises-47