Groww reported a mixed yet strategically important Q2 FY26, with financial performance showing both profitability strength and top-line pressure. The company’s consolidated net profit rose 12% YoY to ₹471 crore, supported by tighter cost management and a richer product mix. However, revenue from operations fell 9.4% YoY to ₹1,019 crore, indicating that growth momentum is slowing in certain segments.

Even as revenue softened, Groww delivered an impressive improvement in profitability. EBITDA increased ~10% YoY to ₹604 crore, and the EBITDA margin expanded sharply to 59.29% from 48.88% last year, a major highlight that underscores operational efficiency and better unit economics. Total income also declined 8% YoY to ₹1,071 crore, reinforcing the theme of profitability improving despite weaker revenue.

On the business side, Groww continued to show strong user-base growth. Active transacting users rose 27% YoY and 5% sequentially to 19 million, while customer assets grew 33% YoY to ₹2.7 lakh crore. Though sequential asset growth was modest at 2%, the structural YoY rise remains strong.

The company’s user mix is shifting meaningfully.

  • - SIP-first users climbed to 36%, up seven percentage points YoY.
  • - ETF-first users rose nearly 6x YoY, signaling increasing adoption of low-cost passive products.
  • - IPO-first users doubled YoY to 6%, reflecting heightened interest in primary markets.
  • - Meanwhile, stocks-first users fell to 37%, down fifteen points, indicating a broadening investor profile beyond equity trading.

Another notable shift is in revenue composition. Groww is reducing dependency on derivatives, with their share in revenue dropping ~10 percentage points YoY. The company is instead pushing deeper penetration across mutual funds, stocks, MTF, and LAS/PL, suggesting a strategic pivot toward long-term, recurring, and diversified income streams.

Importantly, newly acquired users contributed only ~4.5% of incremental revenue, while existing users drove the majority. This implies stronger monetization from the current base and raises questions about whether new-user revenue scaling is slowing.

Overall, Groww’s Q2 paints a dual picture. On one hand, profitability and margins are rising sharply, a strong positive for long-term sustainability. On the other, the decline in revenue and modest asset growth signal that the company is navigating a softening market cycle or competitive pressures. For investors, the quarter underscores both execution strength and the need to watch revenue trends closely in the coming periods.