Groww's margin expansion pauses as quarterly revenue turns flat
Year-on-year operating leverage remained strong, but expenses grew faster than revenue sequentially and net profit fell 1.41%.
Filed 14 Oct 2026, 21:28 IST · after market close · Billionbrains Garage Ventures Ltd (GROWW)
Key takeaways
- Consolidated revenue grew 47.39% year on year, while expenses rose 28.51%, lifting operating margin by 5.21 percentage points.
- Sequential momentum stalled as revenue was nearly flat and faster expense growth narrowed operating margin by 0.15 percentage points.
- Net profit rose 53.75% year on year to Rs 724.70 cr, with other income contributing only 3.89% of pre-tax profit.
Price around the results
Year-on-year operating leverage remains the main story
Consolidated revenue increased 47.39% year on year, while expenses grew 28.51%, allowing operating profit to rise 60.36%. This widened operating margin by 5.21 percentage points to 64.5%. Other income fell 25.75% year on year and accounted for 3.89% of pre-tax profit, so the profit increase was largely operating-led.
Flat sequential revenue exposed a small cost squeeze
Revenue was almost unchanged sequentially, rising 0.01%, while expenses increased 0.43%; costs therefore grew faster than revenue and operating margin narrowed by 0.15 percentage points. Lower interest expense, down 35.57%, partly offset the pressure, but profit before tax still declined 0.85% and net profit fell 1.41%. The tax rate rose 0.42 percentage points sequentially, adding to the reduction in net profit.
Margin expansion pauses after two quarters of improvement
Operating margin rose from 59.25% in Q3FY26 to 62.35% in Q4FY26 and 64.65% in Q1FY27, before edging down to 64.5% in Q2FY27. The quarter therefore ended a two-quarter run of sequential margin expansion, although the margin remained 16.3 percentage points above the 48.2% median for the four Financial Services peers that had reported.
Results were filed after the close; past reactions were positive
The consolidated results were filed after market close, so there was no immediate market reaction in the reported data. After its last four results, the stock rose on all four occasions, with a median absolute move of 6.15%; the latest quarter's reaction remains to be seen against that history.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,502 cr | ₹1,501 cr | +0.01% | +47.39% |
| Other income | ₹38 cr | ₹47 cr | -17.77% | -25.75% |
| Expenses | ₹533 cr | ₹531 cr | +0.43% | +28.51% |
| Operating profit | ₹969 cr | ₹971 cr | -0.22% | +60.36% |
| Operating margin (%) | 64.50% | 64.65% | — | — |
| Interest | ₹5 cr | ₹7 cr | -35.57% | -57.30% |
| Depreciation | ₹18 cr | ₹18 cr | +3.23% | +167.65% |
| Profit before tax | ₹984 cr | ₹992 cr | -0.85% | +54.29% |
| Tax | ₹259 cr | ₹257 cr | +0.75% | +55.80% |
| Net profit | ₹725 cr | ₹735 cr | -1.41% | +53.75% |
| EPS (₹) | ₹1.17 | ₹1.19 | -1.68% | +48.10% |
Operating margin of 64.50% compares with a Financial Services sector median of 48.20% across 4 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 64.5% after the 0.15-percentage-point sequential decline.
- Whether revenue builds from Rs 1,501.53 cr after being nearly flat sequentially.
- Whether other income remains a limited contributor to pre-tax profit from its 3.89% share.