Synopsis
Shares of Billionbrains Garage Ventures surged after reporting strong profits in Q1FY27. The company reported a consolidated net profit of Rs 735 crore, up 94.44% year-on-year. Operating revenues also increased significantly, thanks to the popularity of new products. Groww has retained its position as the largest direct mutual fund distribution platform in India. The company added net customers and expanded its market share in key segments.
ETMarkets.comSo far in the current calendar year, the stock is up 36.11% and over the past six months, 28.74%.
Actions of Billionbrains Garage Venturesthe parent company of the brokerage platform to growsurged nearly 8% to an intraday high of Rs 219 on the BSE after the company reported a strong Q1FY27. winnings. The company reported a consolidated net profit of Rs 735 crore for the quarter, up 94.44 per cent from Rs 378 crore in the corresponding quarter last year.
EBITDA for the quarter under review stood at Rs 971 crore, up 101% from Rs 483 crore last year. Sequentially, the increase was relatively modest, up 3% from Rs Rs 939 crore, Groww’s investor presentation showed.
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Groww’s operating revenue also saw a sharp rise, increasing 66 per cent to Rs 1,504 crore from Rs 904 crore in the corresponding quarter of the previous fiscal. Net profit for the quarter rose 7% to Rs 735 crore from Rs 686 crore last year.
The company said consolidated total profit increased 63.3% year-on-year during the period. June termdriven by the continued traction of new products such as MTFs and commodity derivatives.
In the securities brokerage sector, the company said risk control measures led to a sequential decrease in its retail ADTO market share to 15.1%, although it remained 3.3 percentage points higher year-on-year. In commodity derivatives, it expanded its retail market share to 28.6% in notional ADTO on MCX and NSE.
In mutual funds, it retained its position as the largest direct mutual fund distribution platform in India, with Rs 1.9 lakh crore in direct mutual fund assets under management (AUM). SIP inflows grew 32% year-over-year, outpacing industry growth of 16%.
The company said it remains focused on operating AI across the organization and now offers an AI-powered mutual fund advisory product.MF Premier’, for users who want additional advice on managing their MF Wallet.
The company added that while it plans to make significant investments in AI, it does not expect these investments to have a significant impact on its margins given its scale.
The company said it strengthened its market leadership position in key segments during the June quarter by adding 115,000 net customers, supported by higher customer retention and improved product quality despite an industry-wide slowdown.
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Currently, the company has 4,35,000 active commodity derivatives users on the Groww platform, representing an increase of 10.7% on a QoQ basis, implying an attachment rate of 2.6% of the total active users.
So far in the current calendar year, the stock is up 36.11% and over the past six months, 28.74%.
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