EBITDA for the reporting quarter rose 142% YoY to Rs 939 crore, reflecting significant margin expansion. The company’s PAT margin expanded due to faster revenue growth relative to largely fixed costs, as operating leverage played out across business segments.
The strong financial performance was supported by continued traction in user growth and platform activity. Total transacting users reached 2.16 crore, up 25% YoY, while active users stood at 1.67 crore. Total customer assets on the platform rose 36% YoY to Rs 3 lakh crore, although they declined marginally on a sequential basis due to mark-to-market losses during the quarter.
Net inflows during the quarter remained healthy at Rs 25,000 crore.
Groww’s core revenue engine continued to be driven by trading activity, particularly in derivatives.
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The contribution of equity derivatives to total income increased to 54.6% in Q4, up from 53.5% earlier, as market volatility boosted trading volumes. At the same time, newer segments such as the margin trading facility (MTF) and commodities gained traction, contributing a higher share to overall revenue.
The company noted that heightened volatility during the quarter, driven by geopolitical tensions and continued selling by foreign institutional investors, led to increased activity on the platform, especially in derivatives and commodities. However, this also resulted in higher risk-related costs.In mutual funds, new SIP registrations grew 61.5% YoY, while SIP inflows rose 35% YoY, outperforming broader industry growth. In equities, turnover per user increased 25% YoY, reflecting deeper engagement among users. The derivatives segment also saw strong traction, with average orders per user rising over 43% YoY.
On the cost side, Groww reported an increase in operating expenses, particularly in cost to operate, which rose due to higher risk management costs amid volatility and increased general and administrative spending, including CSR and M&A-related expenses.
Despite this, profitability improved, with EBITDA margin expanding as revenue growth outpaced cost increases.
The company also highlighted performance across its newer business lines. Its credit business contributed 4.1% to consolidated PAT in Q4, and management expects this share to increase as credit penetration improves. Meanwhile, the MTF book grew 22% sequentially, even as broader market conditions remained weak, helping Groww gain market share.
Subsidiary businesses remained in investment mode. Fisdom reported a loss of Rs 10 crore, while Groww’s asset management arm posted a loss of Rs 21 crore during the quarter, reflecting early-stage scaling investments.
Looking ahead, the company indicated that while short-term volatility can boost trading activity, prolonged market weakness could weigh on investor sentiment, impacting new user additions and inflows over time.