Groww doubles Q1 profit as revenue jumps 63 per cent

MUMBAI: Money may not grow on trees, but it certainly grew on Groww’s balance sheet this quarter. The fintech platform delivered a sharp jump in profit and revenue in the first quarter of FY27, fuelled by a larger customer base and rising investment activity, even as it loosened the purse strings to acquire more users.

Billionbrains Garage Ventures Ltd, the parent company of Groww, reported a 94 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 735 crore for the April-June quarter, up from Rs 378 crore a year earlier. On a sequential basis, profit rose 7 per cent.

Consolidated total income climbed 63 per cent year-on-year to Rs 1,549 crore, compared with the corresponding quarter last year. Quarter-on-quarter, however, income grew a modest 1 per cent from Rs 1,536 crore reported in Q4 FY26. The company also posted a strong improvement in operating performance. EBITDA surged 101 per cent year-on-year to Rs 971 crore, up from Rs 483 crore in the year-ago period, while sequential growth stood at 3 per cent from Rs 939 crore.

Groww continued investing aggressively in customer acquisition during the quarter. Its marketing and business promotion expenditure described by the company as its “cost to grow” rose 35 per cent to Rs 146 crore, compared with Rs 108 crore in Q1 FY26. Meanwhile, its cost to operate remained largely under control, inching up to Rs 170 crore from Rs 166 crore a year ago.

The investment appears to be paying off. Groww’s transacting user base expanded 24 per cent year-on-year to 2.2 crore, while active users stood at 1.7 crore as of 30 June 2026. Customer assets on the platform also climbed to Rs 3.6 lakh crore, reflecting growing investor participation.

Across investment products, the company maintained healthy momentum. Active commodity derivatives users increased 10.7 per cent sequentially to 4.35 lakh, while direct mutual fund assets under management (AUM) reached Rs 1.9 lakh crore. SIP inflows rose 32 per cent year-on-year, comfortably outpacing the industry’s 16 per cent growth rate.

Beyond financial performance, Groww is also placing a bigger bet on artificial intelligence. The company said it has begun deploying AI across customer support, research and product development to improve user experience and operational efficiency.

According to the company, AI is already being used to reduce customer query wait times, address personalised research requests and accelerate product development. Despite plans for further investment in the technology, Groww said it does not expect AI spending to have a material impact on margins, given the scale of its business.

The quarter underscores Groww’s strategy of balancing profitability with continued investment in customer acquisition and technology, as competition intensifies across India’s rapidly expanding fintech landscape.