Groww Q2 Profit Climbs 12% Despite Revenue Dip as Platform Cuts Costs, Reduces F&O Dependence

Bengaluru, Wealth management platform Groww posted a resilient financial performance for the September quarter, recording a 12% year-on-year rise in net profit to ₹432 crore, despite a 9.5% decline in operating revenue to ₹1,018 crore.

The profit surge was supported by significant cost optimisation measures and the absence of a ₹159 crore provision made last year, which had weighed down previous net profit figures. The company said improved operational efficiency played a crucial role in cushioning the impact of falling revenues.

Groww reported a rise in revenue per broking order to ₹19.8 from ₹18 a year ago, driven by a large increase in average order sizes. The average order value climbed to ₹59,079 this quarter from ₹35,502 last year, providing a meaningful boost to broking income since commissions are typically pegged as a percentage of transaction size.

In the derivatives segment, however, revenue per order declined due to SEBI’s recent regulatory changes around futures and options. Groww said that some of this impact was offset by tweaks made to its pricing strategy.

The company also highlighted a strategic effort to reduce reliance on high-risk F&O trading. The share of revenue from derivatives dropped to 57% from 68% a year earlier, reflecting a shift toward more diversified and stable product categories.

In its shareholder letter, Groww said the platform’s growth continues to be supported by strong new customer additions and increasing engagement from existing users. The company said its performance depends both on onboarding new investors and deepening customer activity across equities, mutual funds, and newer products.

Groww added that it remains committed to sustainable expansion, balancing profitability with risk management as India’s retail investing continues to rise.