Groww share price: Shares of Billionbrains Garage Ventures, the parent company of stockbroking platform Groww, fell nearly 7% on Friday, November 6, as investors booked profits after a nine-session rally. The decline came after the stock had surged more than 23% over the preceding nine trading sessions.
The stock fell as much as 6.6% to an intraday low of ₹208.75 on the BSE. Despite Friday’s decline, it remained just 8% below its 52-week high of ₹227, recorded in April 2026. The stock had touched a 52-week low of ₹112.02 in November 2025.
Groww shares had gained 11% over one week, 10% over one month and 12% over three months. Their return over six months stood at around 0.5%, reflecting the volatility in the stock despite its recent rally.
Why did Groww shares rally before today’s fall?
Groww shares had gained momentum following regulatory developments that could ease some of the pressure on the broking industry from changes to derivatives trading.
Last month, the Securities and Exchange Board of India (SEBI) revised the framework for the Closing Auction Session (CAS), addressing concerns around derivatives settlement. The regulator also changed trading timings and the methodology used to determine settlement prices for stock and index derivatives contracts.
Under the revised framework, index derivatives settlement prices on expiry days will be calculated using the volume-weighted average price (VWAP), as proposed in SEBI’s September 2026 consultation paper. The change will take effect on December 7, 2026.
The revised methodology is expected to reduce expiry-day volatility under CAS, potentially benefiting brokers whose orders have remained below pre-CAS levels. However, analysts at Jefferies cautioned that the earnings upside could be limited, with premium turnover for exchanges having returned to pre-CAS levels.
Separately, reports that SEBI had recommended reconsidering the 12.5% Long-Term Capital Gains (LTCG) tax for Foreign Portfolio Investors (FPIs) also offered a positive signal for the Indian equity market. Such a move could improve the global competitiveness of Indian equities.
Groww Q2 results: Net profit jumps 54% to ₹725 crore
Groww reported a 54% year-on-year increase in consolidated net profit to ₹725 crore for the September quarter of FY27, compared with ₹471 crore in the corresponding quarter last year.
Revenue rose 44% to ₹1,541 crore from ₹1,071 crore in Q2 FY26, demonstrating growth despite the impact of SEBI’s CAS changes on derivatives trading volumes across the broking industry.
The company’s revenue mix also reflected its efforts to diversify beyond equity derivatives. The segment’s contribution to revenue declined to 45% in the September quarter from around 57% a year earlier. Meanwhile, the commodities business contributed 6.2% of revenue, compared with just 0.2% in the year-ago quarter.
Groww continued to expand its customer base and assets despite the broader industry slowdown. Its transacting user base increased 27% year-on-year to 2.4 crore, while customer assets grew 46% to ₹3.9 lakh crore.
Should you buy Groww shares? Jefferies retains Buy rating
Jefferies maintained its Buy rating on Groww but lowered its target price to ₹240 from ₹250. The revised target still indicates potential upside from Friday’s intraday low of ₹208.75.
The brokerage expects Groww to deliver a 30% compound annual growth rate (CAGR) in profit after tax (PAT) between FY26 and FY29. However, it cut its FY27-FY29 earnings per share (EPS) estimates by 2-3%, factoring in the adverse impact of CAS on options order growth and retail options traders. Higher commodity orders are expected to partly offset this pressure.
Jefferies also sees margin trading facility (MTF) becoming a significantly larger revenue contributor over the coming years. Its contribution to Groww’s revenue is projected to increase to 14% by FY29 from 5% in FY26. The brokerage also expects Groww’s share in the MTF market to rise from 3% to 5% by FY29.
The combination of customer growth, diversification and rising MTF contribution could support earnings expansion. However, the near-term impact of regulatory changes on derivatives activity and the stock’s recent rally remain important factors for investors to watch.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
