IPO-bound Groww leans on wealthier clients, diversification to offset derivatives slowdown

Groww, the country’s largest investment platform by active users, has filed for Rs 6,000-7,000 crore IPO, of which Rs 1,060 crore will be raised as primary capital for investment in growth.

One of the most closely watched IPOs in the Indian startup ecosystem, Groww sets itself apart with a net profit margin of around 45 percent. The company reported a 3x growth in net profit at Rs 1,824 crore during FY 25, while revenue grew 31 percent to 4,056 crore.

While most brokers have seen revenue plummet 20 percent due to regulatory crackdowns on derivatives trading, Groww has charted a different course. The country's largest investment platform by active users has successfully diversified away from its reliance on Futures and Options (F&O) trading, pivoting toward wealthier customers and systematic investment plans, which has helped it report decent numbers during the June quarter of FY 26.

The Bengaluru-based firm reported Rs 378 crore as net profit during Q1FY26, which is an increase of 11% on year. However, the company's revenue for the period stood at Rs 904 crore, a 10 percent decline from Rs 1,000 crore the company reported in Q1 FY25.