GROWW The Quarter a Wrong Answer on the Call Actually Mattered

A Clean Quarter, and a Data Point That Isn't Actually Clean

Groww's first quarter of FY2027 (April-June 2026) is, on the numbers, the least distorted quarter it has reported since going public: Profit After Tax of Rs. 735.04 crore, up 94.3% year-over-year, on Total Income of Rs. 1,548.67 crore, up 63.3%, with none of the base-effect noise that shaped the two quarters before or the definitional resets that same post had to untangle. PAT margin reached 47.5% of Total Income, up 7.6 percentage points year-over-year, as operating leverage continued to play out - the same story Q4 FY26 told, just one more quarter along.

The more interesting data point this quarter isn't a number at all - it's an answer. Asked directly for the revenue split between Fisdom and Groww AMC, CFO Ishan Bansal said: "On the income or revenue from Fisdom plus AMC, I think it is part of the other income." That's not correct as a matter of basic accounting: Fisdom is a fully consolidated subsidiary whose distribution and advisory revenue belongs in Revenue from Operations, not Other Income (which is Groww's line for treasury and investment income on its own cash). This is the third consecutive quarter a data-keeping question about exactly these two businesses has produced an imprecise or unreliable answer on the call - after Q3 FY26's unaddressed Fisdom revenue gap and Q4 FY26's "I don't remember" (see Beyond the Usual for the full pattern).

Operationally, the quarter continued compounding: Total Transacting Users reached 22 million (+24% YoY), Total Customer Assets hit Rs. 3,60,000 crore (+38% YoY), and the State Street Global Advisors investment into Groww Asset Management Limited (Groww AMC) - tracked across the last two posts - cleared both remaining regulatory hurdles this quarter, receiving SEBI approval on June 1, 2026, following March's CCI approval.

The Prescription

Groww should put a single, senior person - not whoever happens to be answering that section of the call - in charge of being able to state, cold, the revenue and profitability contribution of Fisdom and Groww AMC on every earnings call from here forward. These are no longer new, unintegrated acquisitions where imprecision is forgivable: Fisdom closed nine months ago, and Groww AMC's own AUM has grown roughly 140% year-over-year on the CFO's own numbers this quarter. A company that can state Commodity Derivatives active users to the exact thousand (435,000, +10.7% QoQ) has the systems to know these two businesses' numbers too; not having them ready reads as under-prioritization of exactly the segments management says are central to Groww's next chapter.

What it should stop doing: treating "it's part of other income" as an acceptable placeholder answer to a reasonably foreseeable question. If Groww genuinely doesn't disaggregate Fisdom and Groww AMC's revenue from Revenue from Operations internally, the accurate answer is "we don't break that out yet" - not a classification that puts a consolidated subsidiary's revenue in the wrong line of the income statement, live, on a call analysts use to build their own models.

Key Financial Metrics

Q1 FY27 (quarter ended June 30, 2026) vs. Q1 FY26 (quarter ended June 30, 2025) - consolidated, Ind AS, reported in INR crore and USD

Groww's fiscal year runs April-March, so "Q1 FY27" is the April-June 2026 quarter. This filing is also the first to report in INR crore rather than INR million (see Beyond the Usual). USD figures use the INR/USD rate on each period's own period-end date (Rs. 94.92/$1 for June 2026, Rs. 85.71/$1 for June 2025), not a single blended rate.

Metric	Q1 FY27	Q1 FY26	YoY
Revenue from Operations	Rs. 1,501.42 crore ($158.2M)	Rs. 904.40 crore ($105.5M)	✅ +66.0%
Total Income	Rs. 1,548.67 crore ($163.2M)	Rs. 948.47 crore ($110.7M)	✅ +63.3%
EBITDA¹	Rs. 970.68 crore ($102.3M)	Rs. 482.85 crore ($56.3M)	✅ +101.0%
Operating Income²	Rs. 945.74 crore ($99.6M)	Rs. 459.73 crore ($53.6M)	✅ +105.7%
Profit After Tax (Net Income)	Rs. 735.04 crore ($77.4M)	Rs. 378.35 crore ($44.1M)	✅ +94.3%

¹ Defined the same way Groww redefined it last quarter: profit for the period plus total tax expense, finance costs, depreciation and amortisation, and share of net loss of associate (net of tax), less other income. Rounds to Groww's own reported Rs. 971 crore. ² Not a reported statutory line item; calculated as Revenue from Operations minus Total Expenses, consistent with prior posts.

Basic EPS rose to Rs. 1.19 from Rs. 0.66 a year ago (+80.3%); diluted EPS rose to Rs. 1.17 from Rs. 0.63 (+85.7%) - both trail PAT growth by a similar margin to prior quarters, on the same combination of ESOP-driven share dilution and last quarter's bonus-share allotment (see the prior post).

This is a standard (non-half-year, non-annual) quarterly filing, so - as in every such quarter Groww has reported - it doesn't include a balance sheet or cash-flow statement; SEBI's Regulation 33 only mandates those alongside half-yearly and annual results. The last verified balance sheet remains March 31, 2026's: total assets Rs. 18,540.92 crore, cash and cash equivalents Rs. 1,165.47 crore, total debt Rs. 224.01 crore. Those figures are now three months stale and predate this quarter's operating cash flows and the State Street SEBI approval, so they aren't restated here as current - only used, cautiously, in the valuation section below.

Groww continues to report as a single reportable segment under Ind AS 108, unchanged from every prior quarter.

Key Operational Metrics

Q1 FY27 vs. Q1 FY26 unless noted

Metric	Q1 FY27	Q1 FY26	YoY
Total Transacting Users (cumulative)	22.0M	~17.7M (implied)	✅ +24%
Active Users	17.0M	not disclosed this period	-
Total Customer Assets	Rs. 3,60,000 crore ($379.3B)	~Rs. 2,60,870 crore (implied)	✅ +38%
MF SIP Inflows	Rs. 13,229 crore	Rs. 10,020 crore	✅ +32.0%
Stocks ADTO	Rs. 15,801 crore	Rs. 10,674 crore	✅ +48.0%
Equity Derivatives Premium ADTO	Rs. 15,661 crore	Rs. 9,277 crore	✅ +68.8%
MTF Book	Rs. 3,775 crore	Rs. 1,036 crore	✅ +264.4%

Groww added 115,000 net NSE Active Clients this quarter while the broader industry lost roughly 257,000 - management credits better retention rather than stronger new-user acquisition, and separately flags that quarterly net additions were themselves softer than usual, "driven, in part, by lower capital markets activity, particularly among IPOs and ETFs." Market share continued rising across every disclosed product: MF SIP inflow share from 12.4% to 14.1%, Stocks ADTO retail market share from 11.8% to 15.1% (down QoQ from Q4 FY26's rebased 15.7% figure, which management attributes to newly tightened risk controls on intraday and MTF limits), Equity Derivatives Premium ADTO share from 7.2% to 11.0%, and MTF book share from 1.2% to 2.7%.

The MTF book's own market-share denominator changed again this quarter - the second such change in as many quarters (see Beyond the Usual) - now using the combined NSE-plus-BSE industry MTF book rather than NSE alone; Groww discloses that Q4 FY26's share would have been 2.6% rather than 2.7% on this new basis, a small but real restatement. Commodity Derivatives reached 435,000 active users (+10.7% QoQ, a 2.6% attach rate against Active Users) with a 28.6% retail market share in Notional ADTO across the MCX and NSE exchanges. In the credit business, Loans Against Securities^» drove growth again, now 18.5% of the total loan book (up from 13.5% last quarter) and 35.0% of this quarter's disbursements through Groww Creditserv Technology (GCS), the group's NBFC^»; total disbursements through GCS grew 26.1% quarter-over-quarter.

Groww AMC's own AUM grew to Rs. 5,491 crore, up roughly 140% year-over-year - the fastest-growing disclosed metric on the platform this quarter, though still a small base relative to Groww's Rs. 3,60,000 crore of overall Total Customer Assets. Cost to Grow rose sharply in absolute terms (Rs. 108 crore to Rs. 146 crore YoY, or 11.9% to 9.9% of revenue), which management attributes almost entirely to two months of IPL cricket-tournament sponsorship spend this quarter versus roughly one week's worth in the year-ago quarter - a seasonal marketing-calendar effect rather than a change in underlying customer-acquisition economics, worth reading as such rather than as a structural cost increase.

Beyond the Usual

This is a standard Regulation 33 quarterly filing with 11 explanatory notes - not a full annual report - so, as in every non-half-year, non-annual quarter, there are no lease schedules, related-party tables, or contingent-liability notes to mine; the findings below draw on those 11 notes, the shareholders' letter Q&A, and the earnings call.

A live misstatement of where Fisdom and Groww AMC's revenue actually sits, the third straight quarter of imprecision around the same two businesses

Asked directly for the revenue contribution of Fisdom and Groww AMC, CFO Ishan Bansal answered: "On the income or revenue from Fisdom plus AMC, I think it is part of the other income. So roughly I think between both of them we are lesser than 2% is or closer to that number." This is inaccurate as a matter of basic financial-statement structure: Fisdom has been a fully consolidated subsidiary since October 2025, and a consolidated subsidiary's operating revenue (broking commissions, advisory fees, distribution income) is recognized in Revenue from Operations, not Other Income - which, per Groww's own disclosures, is predominantly interest and investment income earned on the company's treasury holdings. Whether the "under 2%" figure itself is accurate is impossible to verify from what's disclosed, given the classification it's attached to appears to be wrong. This continues, and arguably worsens, a pattern flagged in each of the last two posts: Q3 FY26's unaddressed revenue-run-rate gap for Fisdom and Q4 FY26's live "I don't remember" to the same category of question. Three consecutive quarters of imprecision specifically around Fisdom and Groww AMC - the two businesses management repeatedly frames as central to Groww's next growth chapter - is no longer a one-off communication slip; it's a pattern in exactly the area a reader would most want precision.

The MTF market-share denominator changed for the second straight quarter

Last quarter's post flagged a mid-flight change to how Retail Cash and Retail Derivatives Premium ADTO market share are calculated. This quarter, the MTF Book market-share denominator changes too - from NSE's outstanding MTF book alone to the combined NSE-plus-BSE industry book - with Groww explicitly disclosing that Q4 FY26's share would have been 2.6% rather than the previously reported 2.7% on this new basis. Each individual change is disclosed and arguably more methodologically sound than what came before it, but two KPI-denominator changes in two consecutive quarters is now a pattern worth tracking rather than a one-off refinement - a reader building a multi-quarter market-share trend for Groww needs to check, every quarter, whether the ruler moved again.

Groww switched its entire reporting currency from INR million to INR crore this quarter

This filing's Note 10 discloses: "Effective from the quarter ended 30 June 2026, all comparative figures have been restated from INR million to INR crore, to maintain consistency in presentation." Every comparative figure in this filing (and the metrics reported above) is now denominated in crore rather than million - a genuinely reader-friendly change for an Indian audience, and one that happens to align with how these posts have always presented rupee figures, but a real disclosure-format change nonetheless. Anyone comparing this quarter's raw filed numbers against the raw filed numbers in Groww's own Q1-Q3 FY26 or Q4 FY26 filings needs to divide the earlier figures by ten (or multiply this quarter's by ten) to compare like-for-like in the units originally filed - the note itself flags that "any minor variances arising from this change are solely attributable to rounding adjustments," which is worth knowing before treating any small figure discrepancy across quarters as a real number rather than rounding noise.

The State Street/Groww AMC deal cleared its last disclosed regulatory hurdle

Following March 2026's Competition Commission of India approval (see the prior post), this filing discloses that Groww received Securities and Exchange Board of India approval for the State Street Global Advisors investment into Groww AMC on June 1, 2026. The filing states the transaction "is expected to be consummated upon fulfilment of the remaining closing conditions" - meaning approvals are now complete but final closing (the actual transfer of the remaining committed capital) hadn't happened as of this filing. Worth watching for confirmation of full deal completion in the next quarter's results.

An ESOP cost disclosure gives a rare, precise data point on stock-based compensation's share of payroll

Asked directly what share of employee cost comes from ESOPs this quarter, CFO Ishan Bansal answered "roughly 10%" and confirmed, on follow-up, that the figure was specific to this quarter rather than a general rule of thumb. This is a more precise and useful data point than Groww typically volunteers about its own cost structure, and worth keeping as a baseline for future quarters given employee expense (which includes ESOP charges) is one of the larger cost lines subject to April's annual appraisal cycle, which management separately flagged as the main driver of this quarter's employee-cost increase rather than net new hiring.

What Management Actually Emphasized on the Call

Co-founder and CEO Lalit Keshre's opening remarks leaned into a "ten years in, still early" framing - continuing to build out the wealth-management product suite (MF Prime, an AI-assisted mutual-fund advisory product, launched this quarter; "W" for affluent/HNI customers), a new, unnamed product launching this quarter, and continued scaling of Loans Against Securities within the credit business. On AI, CFO Ishan Bansal was explicit that increased investment there isn't expected to pressure margins given Groww's scale - a more confident framing than the more exploratory tone management used discussing AI in the prior quarter's call.

On the softer active-derivatives-customer trend an analyst flagged sequentially, Bansal was candid that Q4 FY26 (the prior quarter) was itself an anomaly worth discounting rather than a new baseline - attributing part of the volatility to the West Asia conflict referenced in the prior quarter's post - and that the underlying trend, compared against Q3 FY26 rather than the unusual Q4, shows improvement. On employee costs, Bansal directly attributed the quarter's increase to April's annual appraisal cycle rather than headcount growth, and reiterated that Groww doesn't expect organizational headcount to grow meaningfully even as the wealth business scales, since the model there is intentionally "more tech-driven, more AI-driven" than a traditional relationship-manager-heavy wealth business.

Stock Price: A Post-Correction Rally Nearly Erases the Whole Prior Quarter's Losses

GROWW.NS, March 31 - June 30, 2026 (month-end closes)

After sliding to Rs. 150.12 by March 31, 2026 - the low point covered in the prior post's valuation section - GROWW.NS rallied sharply through the new quarter: up to Rs. 214.99 by April 30 (a 43.2% gain in one month), before giving back some of that move to Rs. 184.89 by May 29 (a 14.0% pullback from the April high), then recovering again to close the quarter at Rs. 202.07 on June 30 - a 34.6% gain for the quarter overall, and the largest single-quarter move in either direction since the stock's post-IPO debut. This is a large enough swing to be a genuine data point rather than routine noise, though - as in every prior post - the point stands: a single quarter's price action says more about how a newly listed, high-multiple stock trades than about any change in the underlying business documented above.

Target Valuation Range

DCF fair-value range (unchanged from last quarter's build): roughly Rs. 34,459-77,061 crore (base case ~Rs. 56,884 crore) - against a market cap now at roughly Rs. 126,072 crore, so even the bull case sits about 39% below today's price. Still overvalued by every method tried, and now more so: the stock's 34.6% rally this quarter outpaced the roughly 20-25% growth in trailing profit, widening the gap between what the cash-flow build supports and what the market is paying rather than closing it.

Using the June 30, 2026 close of Rs. 202.07 and the same approximately 6,239.05 million shares outstanding used in the prior post (unchanged this quarter, per this filing's notes - no new equity issuance was disclosed, only existing ESOP-trust shares transferring to employees).

Market cap → enterprise value	FY2026 (Mar 2026)	Q1 FY2027 (Jun 2026)
Share price (period-end)	Rs. 150.12	Rs. 202.07
Shares outstanding	6,239.05 million	6,239.05 million
Market capitalization	Rs. 93,646 crore (~$10.02B)	Rs. 126,072 crore (~$13.28B)
Net cash (stale, from Mar 2026 balance sheet)	~Rs. 941.46 crore	~Rs. 941.46 crore (unchanged)
Enterprise value	Rs. 92,704.5 crore (~$9.92B)	~Rs. 125,131 crore

Market cap is up 34.6% from March 31, tracking the share-price move almost exactly since the share count didn't change.

A fresh DCF isn't rebuilt this quarter: the underlying cash-flow assumptions in last quarter's build (a WACC of roughly 14.5%, growth tapering from the mid-20s toward a 5% terminal rate) haven't changed on anything disclosed this quarter, and rebuilding the entire model on an unchanged cash-flow trajectory just to reflect a new share price would overstate how much has genuinely changed in three months.

Scenario (unchanged from last quarter)	Key assumption	Implied DCF value	vs. actual EV (~Rs. 125,131 crore)
Current (period-end close)	— actual market price, for reference	~Rs. 125,131 crore (EV)	—
Bear	Growth tapering from 15% to 6%; WACC 15.5%	~Rs. 34,459 crore	~28% of EV
Base	Revenue-linked cash-flow growth tapering from 25% to 13%; WACC 14.5%	~Rs. 56,884 crore	~45% of EV
Bull	Growth tapering from 32% to 16%; WACC 13.5%	~Rs. 77,061 crore	~62% of EV

That base-case DCF value is now further below the current market cap than it was in March - the gap between what a cash-flow build supports and what the market is paying has widened, not narrowed, purely because the price moved and the business's actual cash generation didn't move as fast. Even the bull case sits about 39% below today's price.

Using trailing-twelve-month (TTM) figures - Q2-Q4 FY26 plus Q1 FY27, now that four full quarters exist since the last quarter's post had to use only three:

Peer-multiple sanity check (TTM)	FY2026 (Mar 2026)	Q1 FY2027 (Jun 2026)
Revenue	Rs. 4,644.58 crore (FY26)	Rs. 5,241.60 crore (~$552.1M, TTM)
P/S	~20.2x	~24.1x
EBITDA	Rs. 2,746.40 crore (FY26)	Rs. 3,275.60 crore (~$345.1M, TTM)
EV/EBITDA	~33.8x	~38.2x
PAT (TTM)	—	Rs. 2,439.67 crore (~$257.0M)
P/E (TTM)	—	~51.7x

This multiple should be read with extra caution given the net-cash figure behind it is now six months stale and predates both this quarter's cash generation and the now-approved State Street capital inflow. All three multiples moved up in lockstep with the share price rather than because the underlying growth rate accelerated - TTM PAT grew roughly 20-25% across the trailing four quarters, well short of the 34.6% price move this quarter alone. Nothing in this quarter's disclosures changes the base-case DCF conclusion from last quarter: the price continues to run ahead of what a straightforward cash-flow build supports.

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