Groww Q1: consolidated PAT ₹735 Cr, +94% YoY on margin expansion; revenue flat QoQ

Groww's holding company Billionbrains reported consolidated Q1 FY27 (quarter ended 30 June 2026) net profit of ₹735.04 Cr, up 94.3% YoY (₹378.35 Cr) and 7.1% sequentially (₹686.36 Cr), on revenue from operations of ₹1,501.42 Cr — up 66% YoY but essentially flat QoQ (-0.3% vs ₹1,505.37 Cr). The print beat the street handily on profit (Univest/Uniresearch preview pegged PAT at ₹499–636 Cr) and landed at the top of the ₹1,323–1,522 Cr revenue range. Both the YoY numbers are flattered and should be read with care: the year-ago base predates the Finwizard/Fisdom acquisition (consolidated from Oct 2025, ₹961 Cr consideration; the reviewed subsidiary alone added ~₹75 Cr revenue this quarter), so headline YoY blends organic growth with an inorganic step-up plus a stronger market backdrop.

The quarter's real story is margins, not the flat topline. Total expenses fell 7.3% QoQ to ₹555.68 Cr even as employee benefits rose 5% QoQ to ₹182.00 Cr — exactly the appraisal-led 'cost to operate' bump management flagged on the Q4 call — with the offset coming from a cut in other expenses to ₹348.74 Cr (from ₹393.32 Cr). Operating (EBITDA) margin expanded to ~64.6% from ~62.4% QoQ and net margin to ~47.5% of total income from ~44.7%, so profit grew despite revenue standing still. Being a broking/markets-linked platform, the flat sequential revenue reflects softer transaction activity rather than seasonality; the sequential profit gain is a margin artefact, which is why YoY, not QoQ, carries the verdict.

The stock went into the print at ₹208.47, up 0.5% over the past month of trading.

For context: this is the highest quarterly PAT in the last 4 quarters on our records; PAT has now risen for 3 consecutive quarters.

Standalone tells a consistent but softer story — PAT ₹555.14 Cr (+81.5% YoY) on revenue ₹953.48 Cr (+53% YoY), with a heavier ₹100.21 Cr of treasury/other income; the ~13pp gap between standalone and consolidated PAT growth is the subsidiary stack (Fisdom wealth, GCS NBFC, GIT MTF lending) doing the incremental work, not a discrepancy. Management gives no formal quantitative revenue guidance — it has said margin expansion is contingent on revenue growth — so this quarter met its only concrete directional guide (Q1 cost step-up on appraisals) while delivering margin gains on a flat topline. Alongside results the Board reclassified the ₹5,000 Cr authorised capital into an all-equity structure (removing 33.5 Cr preference shares, subject to shareholder approval) and appointed EY as internal auditor for FY27; the Groww AMC–State Street (SSGA) investment cleared SEBI on 1 June 2026 and awaits closing.