Groww's parent lifts Q2 profit 54% on customer growth

what happened

Billionbrains Garage Ventures, the company behind Indian online broker Groww, said second-quarter net profit climbed 54% to 7.26 billion rupees ($76.38 million) for the period ended September 30, up from 4.71 billion a year earlier. Revenue from operations increased 47% to 15.02 billion rupees, supported by a 27% year-on-year gain in total transacting users.

Compared with the previous quarter, revenue was unchanged and profit slipped 1.3%. Groww attributed the decline mainly to the closing auction session (CAS) in its derivatives segment. Introduced in August, the mechanism sets a stock's closing price by pairing buy and sell orders at the close, replacing the older approach that relied on the volume-weighted average price over the final 30 minutes.

Equity derivatives revenue fell 14.3% quarter-on-quarter, mostly due to CAS, the company said. Last month, regulator SEBI proposed changes to the method for setting settlement prices on index and stock derivatives at expiry. Groww said: “We believe this segment will recover once the recommendations from SEBI's consultation paper take effect.”

why it matters

For traders, the result shows how a new closing mechanism can weigh on derivatives activity near the close, while the outcome of SEBI's proposals will shape the segment's near-term outlook.

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