GROWW

Delivers Strong Q4, Shares Hit New High

reported a strong Q4FY26, with consolidated revenue up 19% YoY to ₹4,644 crore and net profit rising 14% YoY to ₹2,083 crore. The company’s quarterly results beat estimates, aided by higher-margin trading facility (MTF) and commodity derivatives revenues. Shares surged over 10% intraday to a record ₹216.75, reflecting investor optimism about FY27 growth prospects. Q4FY26 Performance Net profit: ₹686 crore (+25% QoQ). Operating revenue: ₹1,505 crore (+24% QoQ). Broking revenue: ₹1,150 crore (+20% QoQ), supported by strong order volumes. Order volumes: +24% QoQ, a multi-quarter high (vs. +14% in Q3, +10% in Q2). Revenue per order: declined to ₹19.5 from ₹20.1 due to lower F&O volumes. Strategic Developments Fisdom (wealth management): acquired in October, expected to turn profitable by FY28. Asset management business: longer gestation period before profitability. Diversification: MTF and commodity derivatives emerging as incremental revenue drivers. Sector Context & Peer Comparison Broking sector facing headwinds from SEBI’s F&O regulations and subdued equity markets. Groww has shown greater resilience and profitability compared to peer Angel One. Cash orders have grown sequentially for two quarters at Groww, while Angel One’s continue to decline. Valuations: Groww trades at 45x FY27E earnings vs. Angel One’s 23x, reflecting premium positioning. Stock has more than doubled from its IPO price of ₹100 in November 2025. Outlook & Risks Analysts raised FY27 EPS estimates modestly post-Q4 beat. JM Financial cautions valuations are ahead of recurring revenue traction, with 86–87% of FY27/FY28 income still from broking. Scaling of new segments (wealth, asset management) will be critical to sustain premium valuations. Groww’s Q4FY26 results highlight robust broking momentum, resilience to regulatory headwinds, and early traction in new segments.