Groww’s New Verticals Gain Ground As Revenue Mix Shifts

Over the past few years, Groww has made strategic moves to diversify revenue and reduce reliance on a few verticals. These efforts now seem to be showing early results for India’s largest broker. But, before delving into that, here’s a look at the company’s headline numbers for Q4 FY26.

Groww reported a 122% YoY rise in its consolidated net profit to ₹686.4 Cr, driven by margin expansion, market share gains, and growing traction for newer products. Its operating revenue surged 88% YoY and 24% QoQ to ₹1,505.4 Cr during the quarter under review.

The company’s core offerings, equity derivatives and stocks, continued to contribute the bulk of revenue in the March quarter. While the Indian equity markets were under pressure in the last quarter due to the conflict in West Asia, Groww’s derivatives segment (equity and commodity) saw higher trading activity as existing traders rushed to protect their portfolios and capitalise on sharp price swings amid volatility. 

“Last quarter saw significant volatility, which led many existing users – who were previously less active – to increase their trading activity, resulting in a sharp rise in the overall customer base,” Groww’s management remarked in a post-earnings call. 

However, recent volatility has impacted the way new customers discover the Groww platform. As per the company, newer customers (post-2023) are joining the platform via mutual funds and ETFs rather than direct stocks due to market volatility since September 2024. 

As Groww advances its ambition to become a full-stack wealth management platform, here’s a look at its progress and its impact on the revenue mix. 

MTF, Commodities Shine Amid Market Volatility

While Groww recorded a spike in income, its revenue mix also shifted. Its core offerings like mutual funds, equity derivatives, and stocks zoomed on a yearly basis. 

For mutual funds, new SIPs created on the Groww platform grew 61.5% YoY and total inflows crossed the ₹13,000 Cr mark. For equity derivatives, active users grew to 1.70 Mn in Q4 from 1.40 Mn a year ago and 1.48 Mn in the preceding quarter. Active users for stocks zoomed to 11.96 Mn from 10.28 Mn in Q4 FY25 and 11.56 Mn in Q3 FY26.

However, the share of revenue brought in by equity derivatives declined to 55% of the total revenue in Q4 FY26 from 57% in the year-ago quarter amid tighter regulations and hike in taxes for F&O. On a sequential basis, equity derivatives’ share in total revenue pie improved due to volatility. 

Similarly, the share of stocks in revenue dipped to 16% during the quarter under review from 19% in Q4 FY25. 

But the decrease in revenue share of core offerings also reflected Groww’s diversification story. As its overall revenue pie expanded, newer segments grabbed a larger share of it. 

Revenue from commodity derivatives accounted for 4% of the company’s total operating revenue for the second consecutive quarter. The active users for the commodity derivatives segment rose over 50% to 3.9 Lakh in Q4 FY26 from 2.6 Lakh in the preceding quarter.

Notably, the company forayed into the commodities trading segment in October 2025.

“The scale-up in commodities over the next few quarters will be a function of growth in user adoption and industry momentum. We are still early in this journey. For Q4, active users trading commodity derivatives on Groww are now 393K active users,” the company said.

Meanwhile, as the user base expanded, MTF (margin trading facility) accounted for 5% of Groww’s revenue as against 2% in the year-ago period. The company’s MTF book more than doubled YoY to ₹2,814.3 Cr. However, on a sequential basis, the share of revenue brought in by MTF declined by 1 percentage point. 

MTF allows investors to buy stocks by paying only a fraction of the total cost, with the broker funding the remaining amount. 

“The MTF book on Groww grew 22.0% QoQ, coinciding with a period wherein the major indices in India have declined by 16-17% and the industry MTF book has also contracted by 7% QoQ. Hence, we increased our market share,” the Lalit Keshre-led company said, adding that it has a “lot of scope” to further increase its market share in the segment.

Will Investments In New Verticals Weigh On Profitability? 

With an aim to further diversify its revenue and reduce dependence on verticals whose performance is linked to market performance, Groww is looking to further scale up its wealthtech, asset management company (AMC) and consumer credit businesses.

In late-2025, the company completed the acquisition of wealthtech platform Fisdom to build  a launchpad for its high-net-worth individuals (HNI)-focused offering ‘W’. It is a wealthtech product offering services like portfolio management services (PMS), and investments in AIFs and unlisted securities. Under this segment, the company claims to offer “superior experience” in both tech and advisory aspects, targeting new-age affluent customers who expect modern UX.

However, Fisdom reported an operational loss of ₹10.2 Cr in Q4. “The segment is in early stages of integration and scale. We expect it to be profitable in FY28,” Groww said. 

Similarly, Groww’s AMC business (growwmf), which was launched in 2023 after the acquisition of IndiaBulls AMC, reported a loss of ₹21.4 Cr in Q4 FY26. It said the business is still nascent and “sub-scale” and it would need to grow its AUM by 5-6X to be profitable. Groww expects this to happen over the next few years.

Groww is also bullish on its consumer credit business, under which it provides consumer loans and loans against securities by distributing products from partner banks and NBFCs, as well as its own NBFC Groww CreditServ Technology. 

 Groww said its credit offering accounted for 4.1% of its consolidated net profit in the March quarter. The disbursement by its partners rose to ₹389 Cr in Q4 from ₹316 Cr in the year-ago quarter, while disbursements by its NBFC grew to ₹387.6 Cr during the quarter under review from ₹248.7 Cr in Q4 FY25.

Over the next few quarters, the company is likely to step up investments to scale new verticals and diversify its revenue mix. For instance, it deployed ₹506.9 Cr to strengthen its MTF book in Q4 FY26 and ₹105.7 Cr in its consumer credit business. 

However, these investments could weigh on profitability in the near term. Groww will need to ensure operating leverage kicks in, allowing it to expand margins even as it scales these businesses and transitions into a full-stack wealthtech platform.

[Edited By Vinaykumar Rai]

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