Groww's Net Profit Surges 308%, Revenue Doubles To Rs 2,900 Cr In FY24

Groww, the country's largest stock broking firm by active investor base, reported a revenue increase to Rs 2,900 crore in FY24, more than doubling from Rs 1,295 crore in FY23, according to data from Icra. The Bengaluru-based discount broker's net profit grew four times to Rs 298 crore, compared to Rs 73 crore in the previous year.

These figures represent the standalone results of Groww Invest Tech Private (GIT), which operates the stock broking business. GIT, a wholly-owned subsidiary of Billionbrains Garage Ventures Private Limited, saw significant growth despite challenges, such as new tax regulations and reliance on futures and options trading, which accounted for 75-80 per cent of its net operating income.

"GIT's high dependence on capital markets, which are inherently volatile and cyclical in nature. Moreover, a sizeable share of the revenues is from the futures and options (F&O) segment (~75-80 per cent of the net operating income; NOI). Further, it remains susceptible to regulatory changes as well as technological risks," Icra said in the note.

There are more than 160 million demat accounts in the country, but the number of active investors is around 50 million according to exchanges' data.

As of August, Groww had close to 1.2 crore active investors, surpassing Zerodha, which reported Rs 8,320 crore in revenue and Rs 4,700 crore in net profit with around 79 lakh active investors.