Groww's MTF book grows to 78,000 active clients; Here's what it said after Q2 results

Groww's Margin Trading Facility (MTF) book grew 61% to ₹1,668.3 crore in the September quarter from ₹1,035.8 crore in at the end of the June quarter.

The recently listed company announced on Friday, November 21, that MTF business brought in 5% of the company's revenue. Although that number has increased from 1% during the same quarter last year, it has remained consistent at 5% over the last three quarters.

MTF is a financial product that allows users to buy stocks by investing only part of its total value. The remaining amount is loaned by the broker, who then charges interest on this loan. Groww charges a fixed daily interest rate of 0.04% on the funded amount, according to its Red Herring Prospectus (RHP).

Groww launched its MTF book in April 2024 and since then, the number of active users has grown to 78,000 at the end of the September 30 quarter. This is 0.7% of the active stocks user base of 10.65 million that Groww reported in its investor presentation.

Read more: Groww Q2 Results Live Updates: Market cap back above ₹1 lakh crore after earnings

Groww's MTF now holds a market share of 1.7%, and the company believes it's still in the "nascent stages of this journey and will continue to grow, led by higher penetration, ultimately leading to a fair market share aligned with that of our Stocks Average Daily Turnover (ADTO)."

In its RHP, Billionbrains Garage Ventures noted, “The funds required for MTF are sourced through internal accruals as well as external financing.” As of June 2025, Groww Invest Tech Private Limited (GIT) had funded ₹875.8 crore through internal accruals and another ₹160 crore via external borrowings.

Earlier this month, Ishan Bansal, Whole-Time Director and Chief Financial Officer at Billionbrains Garage Ventures Ltd., told CNBC TV18 that while brokerage remains the fintech platform's largest contributor

, its share is expected to decline as new verticals like margin trading (MTF), commodities, and lending scale up.

“Every product that we launch is able to scale much faster, and hence our revenue growth has an extra lever with every new product,” he said. Groww's MTF business is expected to be the fastest-growing in the near term.

The fintech's lending business is valued around ₹1,200 crore at the moment, but the management expects the MTF business surpass it in the near future.

CNBC-TV18 wrote on September 19 as to how leveraged bets taken by Indian investors have jumped 13 times in the last five years. You can read more on that here.

Groww reported a 12% rise in its net profit at ₹471.3 crore in the Sepetmebr quarter, compared to ₹420.1 crore a year ago, supported by higher other income, which increased to ₹52 crore from ₹34.6 crore last year. Sequentially, profit surged 24.6% from ₹378 crore in the June quarter.

Following the quarterly earnings announcement, its first earnings report since listing, shares of Billionbrains Garage Ventures Ltd. gained over 5% on Friday, November 21. The stock has given up all of those gains and is now trading 0.3% higher at ₹157.32.