Billionbrains Garage Ventures, the parent of Groww, saw its shares surge over 6% on Friday, April 10, hitting a fresh all-time high of ₹197.50 on the BSE. The stock has now rallied for three consecutive sessions, gaining around 20% during the period.
The rally was supported by strong trading activity, with around 2 crore shares changing hands within the first hour, pushing turnover beyond ₹400 crore. The stock has been on a strong upward trajectory, rising nearly 50% over the past six months and gaining about 25% so far this year.
Strong volumes, market leadership drive momentum
Groww continues to dominate the brokerage space, holding a 28% market share in terms of active clients, significantly ahead of the second-largest player at 15%. Its leadership is driven by a strong mutual fund funnel, a user-friendly interface, and strong word-of-mouth traction among retail investors.
A report by CNBC-TV18 last month highlighted that JPMorgan had initiated coverage on Groww with an ‘overweight’ rating and a price target of ₹210 per share. The brokerage described the company as the most lucrative India-listed consumer internet platform, citing consistent market share gains and strong appeal among aspirational investors.
JPMorgan also pointed to Groww’s cross-selling capabilities and operating leverage, which could help it grow faster than the broader market. It added that while the stock may appear expensive as a discount broker, it looks attractive when viewed as a broader internet platform.
Financials mixed, revenue growth remains strong
On the financial front, the company reported a 27.8% year-on-year decline in consolidated net profit at ₹546.93 crore, compared to ₹757.11 crore in the same period last year. The decline was primarily due to a one-time gain of ₹315 crore, net of tax, recorded in the base quarter. Excluding this, operating profit after tax rose 24% year-on-year from ₹442 crore.
Revenue performance remained strong, with revenue from operations rising 24.8% year-on-year to ₹1,216.07 crore from ₹974.53 crore in the year-ago period.
However, on a standalone basis, profit after tax declined 36.7% year-on-year to ₹428.45 crore, compared with ₹677.46 crore in the corresponding quarter last year.
