Groww share price jumps 6% despite Q3 profit drop; What should investors do?

Groww share price: Shares of Billionbrains Garage Ventures, the parent of stockbroking platform Groww, rose sharply on Friday even as the company reported a year-on-year decline in consolidated profit for the December quarter.

The stock climbed as much as 6 per cent to an intraday high of Rs 179.78 on the NSE. At the time of writing, Billionbrains Garage Ventures was trading at Rs 173.95, up 5.85 per cent. The stock has a 52-week high of Rs 193.80 and a 52-week low of Rs 112.

Q3 earnings snapshot

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For the quarter ended December 31, FY26, the company reported a 27.8 per cent fall in consolidated net profit at Rs 546.93 crore, compared with Rs 757.11 crore in the same quarter last year.

The decline was largely due to a one-time tax-adjusted gain of Rs 315 crore recorded in Q3 FY25. Excluding this, operating performance remained strong.

Operating profit after tax rose 24 per cent year-on-year to Rs 546.93 crore from Rs 442 crore.

Revenue from operations increased 24.8 per cent to Rs 1,216.07 crore, compared with Rs 974.53 crore a year ago. However, standalone net profit declined 36.7 per cent to Rs 428.45 crore from Rs 677.46 crore in the year-ago quarter.

Market share gains continue

The company strengthened its position across key segments during the quarter. Its share in the cash equity market rose to 28.8 per cent from 21.6 per cent a year earlier. Market share in equity derivatives increased to 18.1 per cent from 12.2 per cent.

Average daily turnover in the retail cash segment grew 21 per cent year-on-year to Rs 11,331 crore. Retail derivatives turnover jumped 45 per cent to Rs 11,483 crore.

In the mutual fund segment, SIP inflows rose 30 per cent to Rs 12,328 crore in Q3 FY26 from Rs 9,476 crore a year ago. Groww’s mutual fund market share improved to 13.7 per cent from 12.3 per cent.

The company also announced plans to acquire additional shares in Groww Asset Management Limited, which remains a wholly owned and non-material subsidiary.

Brokerage views remain positive

Jefferies maintained a ‘buy’ rating on the stock and raised its target price to Rs 195 from Rs 190. The brokerage said the December quarter revenue and adjusted PAT beat estimates by 12 per cent and 14 per cent, respectively. It attributed the outperformance to stronger-than-expected commodity and margin trading facility revenues.

Jefferies noted that new ventures such as MTF, commodities and wealth contributed 12 per cent of quarterly revenues, compared with 1 per cent in FY25. It also expects operating leverage to support margins, with EBITDA margin rising to 63 per cent from 61 per cent last year.

Citi also maintained a ‘buy’ rating with a target price of Rs 195. The brokerage highlighted strong market share gains across segments and expects momentum to continue in MTF, along with gradual revenue contribution from new businesses and improved client activity levels.