Shares of Groww jumped more than 9% after several brokerages turned bullish on the online investment platform following its Q3 FY26 results, as investors focused on sustained revenue growth, improving core profitability and diversification of income streams that underpin the company’s long‑term growth case.
Revenue momentum underpins market confidence
For the December quarter, Groww reported a notable year‑on‑year rise in operating revenue driven by higher trading volumes, growth in active users and increasing contribution from newer business segments. Analysts said the platform continues to benefit from India’s expanding retail investor base—particularly younger and first‑time investors participating in equities, mutual funds and derivatives through digital channels.
The revenue uplift was led by higher brokerage income, increased activity in margin trading facilities and expansion into additional asset classes. Consistent top‑line performance was cited by brokerages as a primary justification for their positive stance on the stock.
Profit dip explained by base effects
Groww’s consolidated net profit declined on a year‑on‑year basis for the quarter, but analysts pointed to a one‑time exceptional gain in the prior‑year period that distorted comparisons. When adjusted for that base effect, core profit growth remained robust, indicating improved operational efficiency.
Brokerage notes highlighted that operating profit after tax showed solid growth, reinforcing the view that the underlying business model is strengthening despite headline profit volatility.
Brokerages reiterate bullish outlook
Multiple domestic and international brokerages reiterated buy or overweight calls after the results, citing momentum in margin trading, an increase in high‑value customers and better monetisation as key drivers. Several firms also raised their target prices, pointing to potential upside from current levels.
Analysts said Groww is well positioned to capitalise on secular trends such as the financialisation of savings in India, rising retail equity participation and continued digital adoption in investment services.
Strategic diversification and new growth levers
Investors welcomed Groww’s strategic expansion beyond traditional broking into areas such as commodity trading, wealth management and asset management. These initiatives are expected to diversify revenue streams and reduce reliance on brokerage income alone.
Brokerages noted the company’s plans to invest in its asset management business, which could unlock opportunities in mutual funds and long‑term wealth products and help build a more balanced, resilient business mix.
Market outlook
The sharp share‑price reaction reflects investor preference for scalable platforms with clear growth visibility. While near‑term earnings may show volatility, analysts expect sustained user growth, higher engagement from existing customers and steady improvements in operational metrics to support medium‑term performance.
If these trends persist, Groww is likely to remain a focus for investors tracking India’s fast‑growing fintech and online broking sector.
