Groww shares rebounded 4% to ₹213.50 on Friday after tumbling 5% in the previous session, as brokerages remained upbeat following robust Q1FY27 earnings. Jefferies, JM Financial and Motilal Oswal reiterated Buy ratings, citing robust profit growth, improving operating leverage, market share gains and diversified revenue streams, with targets of ₹250. The company delivered exceptional financial performance with net profit jumping 94.44% year-on-year to ₹735 crore compared with ₹378 crore in the corresponding quarter last year. Revenue from operations witnessed a sharp uptick, rising 66% to ₹1,504 crore from ₹904 crore in the corresponding quarter of the previous financial year.
EBITDA for the quarter came in at ₹971 crore, up 101% from ₹483 crore in the year ago period, with sequential growth of 3% from ₹939 crore, as reported in Groww's investor presentation. Net profit for the quarter grew 7% to ₹735 crore from ₹686 crore last year, demonstrating sustained profitability momentum. The company's operational efficiency improved significantly, with the cost-to-income ratio declining 3 percentage points quarter-on-quarter to 36%, reflecting better operating leverage and disciplined cost control. Management expects the overall cost structure to remain relatively stable as established businesses gain operating leverage and new products are built by existing teams.
Foreign Institutional Investors (FIIs) and Mutual Funds both raised their holdings in Groww during the June 2026 quarter, signalling that large investors are optimistic about the company's ability to benefit from India's rapidly expanding retail investment market. This institutional confidence is supported by Groww's strong Q1FY27 performance, with net profit surging 94% year-on-year and revenue climbing 66%, prompting multiple brokerages to maintain positive views and raise price targets. The optimism is also supported by Groww's product-agnostic platform and expansion into newer products and services, which could increase customer engagement and improve wallet share.
JM Financial has upgraded Groww to 'Buy' from 'Sell' and raised its target price to ₹250 from ₹170, citing stronger growth visibility and improving operating leverage. The brokerage raised its FY27, FY28 and FY29 EPS estimates by 4%, 6% and 11% respectively, with confidence strengthened after Groww delivered resilient performance despite moderation in retail trading activity from Q4FY26 peak. Jefferies raised its FY27-FY29 EPS estimates by 1-6%, noting that the stock is currently trading at 45x FY27E EPS with an expected three-year EPS CAGR of 30%. JM Financial now values Groww at a 50% premium to Angel One, compared with 20% earlier, citing stronger earnings growth, better margins, and a larger customer asset base. Motilal Oswal reiterated its Buy rating with a revised target price of ₹250, based on 38x FY28 estimated earnings per share, expecting continued market share gains and improved revenue per order.
