Groww’s Revenue Surges to Rs 2,900 Crore in FY24, Net Profit Hits Rs 298 Crore
- ByStartupStory | October 2, 2024
Bengaluru-based Groww, the country’s largest stock broking firm by active investor base, has reported remarkable financial growth for the financial year ending March 2024. According to data from the rating agency ICRA, Groww’s revenue more than doubled to Rs 2,900 crore in FY24, compared to Rs 1,295 crore in FY23. The firm’s net profit also saw a significant increase, soaring four times to Rs 298 crore from Rs 73 crore the previous year.
These results reflect the standalone performance of Groww Invest Tech Private Limited (GIT), the entity managing Groww’s stock broking operations. While GIT is the main operating company within the Groww Group, it is a wholly owned subsidiary of Billionbrains Garage Ventures Private Limited. Notably, Groww also operates a credit business that is not included in these figures.
In August, Groww boasted close to 1.2 crore active investors, according to data from the National Stock Exchange. The company has seen rapid growth in its investor base, surpassing Zerodha to become the largest broking company in the country.
Zerodha, led by Nithin Kamath, reported revenue of Rs 8,320 crore and a net profit of Rs 4,700 crore, with approximately 79 lakh active investors on its platform.
ICRA noted that despite Groww’s expansion into margin trading facilities (MTF), which could increase reliance on borrowings, its financial leverage is expected to remain comfortable due to its market leadership in broking. However, the report also highlighted challenges ahead for the industry.
“Broking firms are bracing for higher taxes on trading, lower exchange rebates, and possible restrictions on retail futures and options trading during the current financial year,” the report stated. “Most broking firms could see a 30-50 percent hit to the topline during the second half of FY25.”
ICRA cautioned that GIT’s financial health remains closely tied to the capital markets, which are known for their volatility. “A sizeable share of the revenues is from the futures and options (F&O) segment (~75-80% of the net operating income; NOI). Further, it remains susceptible to regulatory changes as well as technological risks,” the agency noted.
In a significant milestone for the company, Groww saw its total number of active traders on the platform grow to over 10 million users in May 2024. This growth comes amidst a backdrop of more than 160 million demat accounts in India, although only about 50 million are active investors, according to exchange data.
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