Groww Q2 results today: What to expect as the market awaits first post-listing scorecard

Groww will report its second quarter earnings today, making this its first financial announcement since the stock listed earlier this month. The market has been on a roller-coaster with the counter -- the shares jumped almost 94% in the first few sessions, before sliding more than 18% in the days that followed. As volatility stays high, all eyes are now on the numbers and the management commentary that will set the tone for the coming quarters.

The broader backdrop for the brokerage sector is already weak. According to Prashanth Tapse, Sr VP and Research Analyst at Mehta Equities, most Indian brokerage firms faced noticeable pressure in Q2 because of a slowdown in overall trading activity.

The fall in derivatives volumes after the recent regulatory tightening has hit revenues across the industry. With speculative and high-frequency traders pulling back, earnings have cooled for almost every major brokerage.

The strain is visible even among the biggest players. The country’s second-largest retail broker reported a 20–21% drop in revenue and a sharp 40–50% fall in profit, marking one of the toughest quarters in years.

Full-service brokers, normally more resilient because of their advisory and wealth arms, also saw margins shrink. This shows that the slowdown is not limited to low-cost brokers, but it is sector-wide.

Competition remains another major challenge. The line between discount and full-service brokers is fading fast as every platform tries to offer more products, better tools and sharper pricing.

This fight to attract and retain the most active traders has pushed firms to increase spending on customer acquisition and engagement. Higher costs, combined with softer trading volumes, have kept margins under pressure across the board.

Against this backdrop, Groww enters Q2 with both expectations and caution surrounding it. While the sector has slowed, Groww may still show stable to slightly positive revenue growth, mainly because of its very large user base. The company has also been trying to improve cross-selling, offering more investment options and features to existing customers, which could support revenue this quarter.

"Margins may stay broadly stable, with a chance of a mild improvement as the company benefits from scale and operating leverage," Tapse said .

But the big question is whether this trend is sustainable. Groww is expanding beyond pure broking into areas like wealth management, asset management and margin-based products. These new verticals could become important growth engines, but they also come with execution risks and require meaningful investment. Investors will want clarity on how fast these businesses are scaling and when they can start contributing meaningfully to profits.

"For investors, management commentary will be critical, particularly guidance on Q3 trading activity, monetization of non-broking verticals, and the pace of cross-sell efforts. Given the current sector backdrop, it is prudent to wait for market reaction to the reported print, assess how the street interprets the underlying trends, and then take a more informed view on positioning," Tapse added.

Between FY23 and FY25, revenue rose from Rs 1,141 crore to Rs 3,902 crore, a compound annual growth rate of nearly 85%. Profit after tax jumped from Rs 458 crore to Rs 1,824 crore over the same period. EBITDA surged from Rs 399 crore to Rs 2,371 crore, reflecting strong operating leverage as the user base scaled.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)