Groww lifts operating margin as revenue growth outpaces costs
Consolidated operating margin rose 3.10 percentage points QoQ to 62.35%, while net profit grew 25.49% despite lower other income.
Filed 21 Apr 2026, 11:20 IST · Billionbrains Garage Ventures Ltd (GROWW)
Key takeaways
- Consolidated revenue grew 23.79% QoQ while expenses rose 14.35%, lifting operating margin by 3.10 percentage points.
- Net profit increased 25.49% QoQ to Rs 686.35 cr despite depreciation rising 158.18%.
- The stock gained 9.13% on results day, with trading volume at 7.12 times the normal level.
Price around the results
Revenue growth widened the operating spread
Consolidated revenue rose 23.79% QoQ, ahead of the 14.35% increase in expenses, so operating profit grew faster at 30.28%. This drove a 3.10 percentage-point expansion in operating margin to 62.35%. Other income fell 33.45% and contributed only 3.15% of pre-tax profit, so the quarter's profit growth was mainly operational rather than other-income-led.
Higher depreciation limited pre-tax profit growth
Pre-tax profit grew 25.62% QoQ, slower than operating profit, as depreciation increased 158.18% and other income declined. Interest expense fell 23.81%, partly offsetting that pressure. The tax rate increased by 0.08 percentage points to 26.65%, so the net-profit increase was not flattered by a lower tax rate.
Margin recovered after two broadly flat quarters
Operating margin had edged down from 59.29% in Q2FY26 to 59.25% in Q3FY26 before recovering to 62.35% in Q4FY26. Groww's margin was 2.94 percentage points above the 59.41% median for the 52 Financial Services peers that had reported the quarter. This puts the latest quarter above the recent margin range rather than extending the earlier softening.
Shares rose sharply after the filing
The stock gained 9.13% on the results date and opened 2.49% higher, with volume at 7.12 times the normal level.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹1,505 cr | ₹1,216 cr | +23.79% |
| Other income | ₹30 cr | ₹44 cr | -33.45% |
| Expenses | ₹567 cr | ₹496 cr | +14.35% |
| Operating profit | ₹939 cr | ₹720 cr | +30.28% |
| Operating margin (%) | 62.35% | 59.25% | — |
| Interest | ₹8 cr | ₹11 cr | -23.81% |
| Depreciation | ₹24 cr | ₹9 cr | +158.18% |
| Profit before tax | ₹936 cr | ₹745 cr | +25.62% |
| Tax | ₹249 cr | ₹198 cr | +25.98% |
| Net profit | ₹686 cr | ₹547 cr | +25.49% |
| EPS (₹) | ₹1.11 | ₹0.89 | +24.72% |
Operating margin of 62.35% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +9.13% | +8.26% |
| Next session | +11.11% | — |
| 5 sessions | +12.11% | +13.62% |
| 15 sessions | -3.93% | — |
| 30 sessions | -3.03% | — |
Volume on the results session was 7.12× its 20-day average.
What to watch
- Whether operating margin holds above 62.35% after the Q4FY26 recovery.
- Whether revenue growth remains ahead of expense growth, following 23.79% versus 14.35% QoQ.
- Whether depreciation remains a larger drag after its 158.18% QoQ increase.