Groww lifts margin and profit despite a sequential revenue dip
Operating costs fell faster than revenue, while a lower tax rate and reduced interest expense supported the 7.09% rise in consolidated profit.
Filed 15 Jul 2026, 12:50 IST · Billionbrains Garage Ventures Ltd (GROWW)
Key takeaways
- Consolidated net profit rose 7.09% sequentially to Rs 735.04 cr even as revenue slipped 0.26%.
- Operating margin expanded 2.3 percentage points to 64.65% because expenses fell 6.35%, faster than revenue.
- The stock gained 6.15% on results day, well above its 1.01% median move after the previous three results.
Price around the results
Profit grew while revenue was broadly flat
Consolidated revenue fell 0.26% sequentially to Rs 1,501.42 cr, but operating profit rose 3.41% to Rs 970.68 cr. Net profit increased 7.09% to Rs 735.04 cr, helped by lower interest expense and depreciation as well as a lower tax rate. Other income rose 57.68% to Rs 46.53 cr, but accounted for 4.69% of pre-tax profit, so it was not the main source of earnings.
Lower costs drove the 2.3-point margin expansion
Expenses declined 6.35% while revenue fell only 0.26%, lifting operating margin by 2.3 percentage points to 64.65%. Interest expense fell 8.63% and depreciation declined 27.89%, adding support below operating profit. The tax rate fell 0.73 percentage points to 25.92%, which also helped net profit grow faster than pre-tax profit.
Margin improvement continued for a second quarter
Operating margin rose from 59.25% in Q3FY26 to 62.35% in Q4FY26 and 64.65% in Q1FY27, marking a second straight quarterly expansion. Groww's margin was 0.93 percentage points above the 63.72% median among 28 Financial Services peers that had reported the quarter. The sequential revenue decline means the margin gain came from cost control rather than top-line momentum.
The market reaction was unusually large for this stock
The stock rose 6.15% on the results day, with volume at 4.68 times the reference level, and was up 0.91% on the following session. The move was much larger than the stock's 1.01% median absolute reaction across its previous three results, all of which were positive. By the fifth session, the gain was 0.05%, compared with a 0.29% relative gain against the market.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹1,501 cr | ₹1,505 cr | -0.26% |
| Other income | ₹47 cr | ₹30 cr | +57.68% |
| Expenses | ₹531 cr | ₹567 cr | -6.35% |
| Operating profit | ₹971 cr | ₹939 cr | +3.41% |
| Operating margin (%) | 64.65% | 62.35% | — |
| Interest | ₹7 cr | ₹8 cr | -8.63% |
| Depreciation | ₹18 cr | ₹24 cr | -27.89% |
| Profit before tax | ₹992 cr | ₹936 cr | +6.05% |
| Tax | ₹257 cr | ₹249 cr | +3.16% |
| Net profit | ₹735 cr | ₹686 cr | +7.09% |
| EPS (₹) | ₹1.19 | ₹1.11 | +7.21% |
Operating margin of 64.65% compares with a Financial Services sector median of 63.72% across 28 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +6.15% | +6.04% |
| Next session | +0.91% | — |
| 5 sessions | +0.05% | +0.29% |
Volume on the results session was 4.68× its 20-day average.
What to watch
- Whether revenue recovers from Rs 1,501.42 cr after the 0.26% sequential decline.
- Whether operating margin holds above 64.65% after two consecutive quarterly increases.
- Whether other income remains a limited contributor to pre-tax profit relative to its 4.69% share this quarter.