Groww Sees Uptick in Active Users After Months of Decline
Investment platform Groww, after months of decline, saw a rise in its active users led by new user additions, its parent company Billionbrains Garage Ventures Ltd. said in a letter to investors on Friday. The company, which had reported a decline in active users in July, August, and September, continued to hold the largest client base.
After months of decline, Groww in October saw the number of active users rising. Its total active users stood at 1.48 crore, making Groww the country’s largest brokerage in terms of client base. In addition, the company in its investor presentation said its active users rose 3.2% quarter-on-quarter, led by growth in new user acquisition.
New User Acquisition Drives Growth
The growth in new user acquisition is a significant factor in Groww’s rise in active users. The company’s total transacting users also rose 5% quarter-on-quarter to 1.9 crore in the quarter ended September. This increase in transacting users is a positive sign for the company, indicating that new users are not only joining the platform but also actively trading.
Furthermore, Groww’s market share rose to 26.6% in comparison to 25.6% in the same quarter last year. This increase in market share is a testament to the company’s growing popularity among Indian investors. To learn more about Indian stock market trends and analysis, visit our website.
NSE Active Clients Decline, But Company Remains Optimistic
However, Groww’s NSE Active Clients declined to 1.19 crore from 1.32 crore in January 2025. During the quarter under review, the industry NSE Active Users fell from 50.2 million to 45.3 million. Despite this decline, the company remains optimistic about its growth prospects.
“NSE Active Clients is a lag metric, including anyone who has undertaken any transaction in the last twelve months, and any decline is observed with a delay. We already saw growth in our NSE Active Users in October and our market share grew to 26.6% from 25.6% in Q2 FY25 – we believe we are at an inflection point,” the company said.
India’s Potential for Long-Term Growth in Retail Investing
The newly listed company said that India’s potential for long-term growth in retail investing remains vast. “In India, presently there are 45 Mn investors (5% of the adult population); if we compare to developed nations, the participation is still at a nascent stage. A recent SEBI Investor Survey highlighted a significant awareness-to-participation gap- 63% of Indian households (213 million) are aware of at least one securities market product, but the actual participation stands at just 9.5% (32.1 million households). Also, 22% of aware non-investors expressed an intent to invest within the next year,” the company said in its shareholders’ letter.
To understand more about SEBI Investor Survey and its implications on the Indian stock market, read our detailed analysis.
Profit and Revenue Rise, Shares Trade Higher
Groww’s profit rose 24.6% to Rs 471 crore in the second quarter of this financial year. This is in comparison to profit of Rs 378 crore in the previous quarter of this fiscal, according to its stock exchange notification on Friday.
Groww’s total income rose 13% in the quarter ended September to Rs 1,071 crore in comparison to Rs 948 crore in the previous quarter. Revenue advanced by 12.7% quarter-on-quarter for the three months ended September, reaching Rs 1,019 crore. Operating income, or earnings before interest, taxes, depreciation, and amortization rose 25%quarter-on-quarter to Rs 1019 crore. The Ebitda margin expanded to 59.3%.
Shares of Groww were trading 2.09% higher at Rs 159.99 apiece on the NSE at 1:23 p.m., while the benchmark Nifty50 stood at 26,116.40, down 0.29%. The stock is trading 42.8% above its listing price of Rs 112 apiece. For more information on Nifty50 today and its impact on the Indian stock market, visit our website.
Conclusion
In conclusion, Groww’s rise in active users after months of decline is a positive sign for the company and the Indian stock market. The growth in new user acquisition and increase in market share are testaments to the company’s growing popularity among Indian investors. As the company continues to expand its user base and improve its services, it is likely to remain a major player in the Indian brokerage industry.
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