Groww Q2 Results: Revenue and margin expand from June quarter; stock up 5%

Shares of Billionbrains Garage Ventures Ltd., the parent of trading platform Groww, gained over 5% on Friday, November 21, after the company posted its September quarter results, its first earnings report since listing.

Groww

reported a net profit of ₹471.3 crore, compared to ₹420.1 crore a year ago, marking a 12% rise. Sequentially, profit jumped 24.6% from ₹378 crore in the June quarter.

The bottomline was supported by higher other income, which increased to ₹52 crore from ₹34.6 crore last year.

Revenue from operations declined 9.5% year-on-year to ₹1,018.7 crore from ₹1,125.3 crore, though it rose 12.7% over the previous quarter.

EBITDA rose 9.7% year-on-year to ₹603.3 crore from ₹550 crore and also improved 25% on a sequential basis. Margins expanded to 59.3% from 48.9% last year and 53.4% in the June quarter.

Groww shares are rebounding after a two-day sell-off. The stock had declined nearly 20% in the last two sessions as concerns over valuations, free float and shares going into the auction, took the stock lower after rising as much as 90% in the first five days of listing.