Groww profit nearly doubles; shares rise on higher trading

Billionbrains Garage Ventures, parent of online broker Groww, posted consolidated net profit of ₹7.35 billion for the quarter ended June 30, up from ₹3.78 billion a year earlier.

Revenue from operations rose 66% year-on-year to ₹15.01 billion. Expenses increased 25% year-on-year, a slower pace than revenue growth.

Shares initially jumped nearly 8% on the earnings release and were trading about 4.1% higher at ₹212.22 at the time of reporting.

The Groww platform recorded 22 million transacting users during the quarter, a 24% increase year-on-year and a 4% sequential rise.

Total customer assets held on the platform rose 38% year-on-year and 22% quarter-on-quarter. The platform’s website lists more than 50 million customers served since the company was founded nearly a decade ago.

Groww added 115,000 active National Stock Exchange clients in the quarter, while the broader brokerage industry recorded a net loss of 257,000 clients, according to the company.

Active users in the commodities derivatives business increased 10.7% sequentially to 435,000 for the quarter.

Executives attributed higher operating revenue to increased trading volumes and platform growth, which widened the gap between revenue and expense growth.

Customer acquisition continued and assets under custody expanded during the quarter.