India's Groww parent posts 12% profit rise in Q2

Billionbrains Garage Venture, the parent company of India-based online brokerage Groww, reported a 12% year-on-year rise in profit for Q2 2025, reaching 471 crore rupees (US$53.1 million).

Revenue for the quarter dropped 9.5% year-on-year to 1,018.7 crore rupees (US$114.8 million).

This marks the company’s first earnings release since its public listing.

Groww’s EBITDA rose 25% quarter-on-quarter to 603.3 crore rupees (US$67.9 million), while margins improved to 59.3%, from 53.4% in the previous quarter.

Stocks and margin trading funding (MTF) accounted for a larger share of revenue, while derivatives revenue fell.

Groww’s shares moved between 4.9% and 5.5% higher after the earnings announcement.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

SEBI derivative curbs hit brokers, Groww revenue drops

Groww posted a 9.5% year-on-year revenue drop while Unified Payments Interface (UPI), India’s real-time retail payment system, grew 25% to 20.7 billion transactions in October 2025 1 2. Peers cite regulatory changes as a revenue drag 1 2.
Angel One, a direct peer in India, said derivatives (futures and options) drove 81% of gross broking revenue in Q2 FY25 2. It estimated a 13–14% hit per client from the Securities and Exchange Board of India (SEBI) “true to label” circular on standardizing transaction charges. SEBI also tightened derivatives through fewer weekly expiries, larger contract sizes, and higher Extreme Loss Margin (ELM) at expiry 2.
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