Tag: GrowwIPO

Groww  reported a 12% rise in net profit for the quarter ending September 30, 2025,  as Billionbrains Garage Ventures, the parent company behind Groww, posted a net profit of ₹471 crore compared to ₹420 crore in the same period last year. This growth comes despite a 9.5% drop in revenue, which fell to ₹1,018 crore from ₹1,125 crore a year ago.

The investment platform, attributed the profit growth to tighter cost control and operational efficiency. Total expenses fell significantly to  ₹432 crore, with employee benefits at ₹124 crore and other operating costs at ₹291 crore. EBITDA margins improved to 59.3%, up from 53.4% last year.

Groww’s user base continues to expand, with 19 million transacting users, up 27% year-on-year. Total customer assets rose 33% to ₹2.7 lakh crore, with mutual funds accounting for 53% of these assets. The company is also expanding into non-broking services, including wealth management and commodities trading, aiming to diversify revenue sources.

This quarter is particularly significant as it is Groww’s first full report after its public listing earlier this month. While revenue declined, the rising profit, growing user base, and increasing customer assets suggest a healthy underlying business.

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Groww, the online investment platform, made a strong debut on the stock market on Tuesday. Its shares, priced at ₹100 in the IPO, opened at ₹112 on the NSE and ₹114 on the BSE,  a 12–14% gain on listing day. The IPO was heavily oversubscribed, with total demand about 17.6 times the shares on offer. Retail investors alone bid nearly 9.4 times.

In the grey market before listing, Groww’s shares were trading at a small premium of ₹3, down from earlier higher expectations.

The company has been growing rapidly, with active users rising sharply and affluent clients expanding at a faster pace. Groww’s cost to acquire customers remains relatively low compared to peers, supporting healthy margins.

However, experts caution that the stock is trading at a high valuation which is roughly 33–40 times projected FY25 earnings. Some analysts suggest holding IPO allotments for 2–3 years to realize potential gains rather than expecting quick profits.

Groww is expanding into lending, insurance distribution, and wealth management, but these newer segments are yet to scale significantly. Investors are also reminded of risks such as regulatory changes and dependence on financial markets.

For now, Groww’s listing reflects strong investor interest, but experts advise weighing growth potential against the high valuation before making investment decisions.

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Groww Software India Pvt Ltd’s ₹6,632 crore IPO, launched on 4 November, has seen robust demand, particularly from retail investors. The shares, priced at ₹95–₹100, are set to list on 12 November.

As of Day 2, overall subscriptions stood at 1.39 times, with retail investors leading at over 4×, non-institutional investors around 1.7–1.8×, and qualified institutional buyers at 0.15–0.18×.

The grey-market premium of ₹14.75 suggests a listing near ₹114.75, roughly 15% above the issue price.

Brokers cite Groww’s pan-India reach, in-house technology, strong revenue growth (~85% CAGR FY23–FY25), and reduced operating costs as key strengths.

Proceeds will fund cloud infrastructure, marketing, margin trading, NBFC expansion, and general growth. Analysts recommend “Subscribe” for listing gains, while noting risks from competition, regulation, and technology challenges.

Also Read: ₹1,060 Crore Groww IPO Gets 57% Day-1 Subscription

Online investment platform Groww opened its ₹1,060 crore IPO on November 4, drawing robust retail participation on Day 1. The offer, which closes on November 7, includes a fresh issue and an offer for sale by existing shareholders, with a price band of ₹95–100 per share.

By the end of the first day, the IPO was 57% subscribed overall, while the retail portion was oversubscribed 1.9 times, indicating strong investor interest. The stock is trading at a ₹17 grey market premium, implying a potential 17% listing gain at the upper price band.

Groww commands about 26% market share in its segment and has 12.6 million active clients as of June 2025. For FY25, the company reported ₹4,056 crore in revenue and a 44% net profit margin.

At the upper end of the price range, Groww’s P/E ratio stands at 40.8×, which analysts find high. While most recommend a ‘Subscribe for Long Term’, they caution that the business remains dependent on retail trading volumes and regulatory shifts.

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