Synopsis: Groww posted strong Q1 FY27 results with robust profit growth and margin expansion, prompting bullish views from Citi, JPMorgan, Jefferies, and Motilal Oswal, which highlighted MTF growth, diversified revenue, and long-term earnings potential.
This Large-Cap Stock, engaged in providing digital financial services, including stock broking, mutual funds, wealth management, lending, and investment solutions through its Groww platform, is in focus after reporting strong Q1 FY27 results, led by robust margin expansion, higher profitability, and strong growth in its Margin Trading Facility (MTF) business. The performance prompted leading brokerages, including Citi, JPMorgan, Jefferies, and Motilal Oswal, to maintain positive ratings and raise confidence in the company’s long-term growth outlook.
With a market capitalization of Rs. 1,32,780.67 crore, the shares of Billionbrains Garage Ventures Limited were currently trading at Rs. 211.65 per equity share, down nearly 2.20 percent from its previous day’s close price of Rs. 216.40.
What is the News?
Citi, a prominent brokerage firm, has recommended a “Buy” call on Billionbrains Garage Ventures Limited with a target price of Rs. 255 per share, indicating an upside potential of 20.48 percent from its current price of Rs. 211.65.
Citi has maintained its ‘Buy’ rating on Groww, even though the company is seeing some moderation in business momentum. Growth in active users in the broking segment has slowed, and the pace of market share gains is not as strong as before. However, higher ticket sizes continue to support growth in the Margin Trading Facility (MTF) business and improve cash yields.
Citi believes new product launches could provide the next phase of growth for Groww. While the current business environment remains soft, the brokerage expects innovation and product expansion to help drive customer engagement and earnings over the long term, supporting its positive view on the stock.
Similarly, JPMorgan has recommended a “Overweight” call on Billionbrains Garage Ventures Limited with a target price of Rs. 250 per share, indicating an upside potential of 18.12 percent from its current price of Rs. 211.65.
JPMorgan has maintained an “Overweight” rating on Billionbrains Garage Ventures Ltd (Groww) after the company reported a strong quarterly performance. Revenue was in line with expectations, but EBITDA and earnings per share came in higher than the brokerage’s estimates. Revenue grew 66 percent year-on-year, while EBITDA exceeded estimates by 6 percent, reflecting better profitability.
The brokerage said the strong performance was mainly driven by the Margin Trading Facility (MTF) business, where revenue jumped 335 percent year-on-year. Growth was also supported by equity and commodity derivatives (65 percent) and cash equities (39 percent). Total transacting users increased 24 percent, customer assets rose 38 percent, and EBITDA margin expanded 230 basis points sequentially to 64.6 percent, supported by operating leverage.
Further, Jefferies has recommended a “Buy” call on Billionbrains Garage Ventures Limited with a target price of Rs. 250 per share, indicating an upside potential of 18.12 percent from its current price of Rs. 211.65.
Jefferies has maintained a “Buy” rating on Billionbrains Garage Ventures Ltd (Groww), citing strong profitability driven by lower operating expenses. The brokerage noted that Groww’s revenue mix is becoming more diversified, with the contribution from options trading falling to 52 percent, while newer businesses such as Margin Trading Facility (MTF), commodities, and wealth management now contribute 14 percent of total revenue.
Jefferies believes the planned launch of US stock investing in FY27 could increase FY28 earnings by 5–9 percent. Although regulatory changes remain a key risk, the brokerage expects only a limited impact from recent RBI measures. It also noted that the stock trades at around 45 times FY27 estimated earnings, supported by an expected 30 percent EPS CAGR over the next three years.
Additionally, Motilal Oswal has recommended a “Buy” call on Groww with a target price of Rs. 250 per share, indicating an upside potential of 18.12 percent from its current price of Rs. 211.65.
Motilal Oswal has maintained a “Buy” rating on Billionbrains Garage Ventures Ltd (Groww), keeping its revenue estimates largely unchanged. The brokerage said weaker revenue from the cash market and equity derivatives was offset by stronger-than-expected growth in the Margin Trading Facility (MTF) business. It also raised its FY27 and FY28 earnings estimates by 1 percent and 3 percent, respectively, supported by better operational efficiency.
The brokerage noted that higher activity in commodities, cash equities, and MTF helped balance weakness in equity derivatives. It added that Groww’s cash market share fell 0.7 percentage points due to planned risk-tightening measures, while Loans Against Securities (LAS) now make up 30 percent of its lending portfolio. Motilal Oswal also highlighted that Groww has received approvals from SEBI and the CCI for State Street Global Advisors’ strategic investment in Groww AMC to develop cross-border investment products.
Q1 FY27 Result Walkthrough:
Coming into the quarterly results of Billionbrains Garage Ventures Limited, the company’s consolidated revenue from operations increased by 66.01 percent YOY, from Rs. 904.40 crore in Q1 FY26 to Rs. 1,501.42 crore in Q1 FY27, and slightly decreased by 0.26 percent QoQ from Rs. 1,505.37 crore in Q4 FY26.
In Q1 FY27, Billionbrains Garage Ventures Limited’s consolidated net profit increased by 94.28 percent YOY, reaching Rs. 735.04 crore compared to Rs. 378.35 crore during the same period last year. As compared to Q4 FY26, the net profit has increased by 7.09 percent, from Rs. 686.36 crore. The basic earnings per share increased by 80.30 percent and stood at Rs. 1.19 as against Rs. 0.66 recorded in the same quarter in the previous year, FY2026.
Business Segments Revenue:
In Q1 FY27, Equity Derivatives remained the company’s largest revenue source, contributing 52 percent of total income despite a slight decline from previous quarters. The Stocks segment was the second-largest contributor at 16.4 percent, with these two businesses together accounting for nearly 68 percent of the company’s total revenue.
The company also benefited from a diversified income mix. Float income (8.1 percent), Margin Trading Facility (MTF) (8 percent), Commodity Derivatives (4.9 percent), PL + LAS (5.5 percent), Treasury (3 percent), and Other Income (2.1 percent) provided steady support, reducing dependence on a single business segment and strengthening overall revenue stability.
Assets Under Management (AUM):
Groww AMC continued to report strong growth in Assets Under Management (AUM) during FY27. Its AUM increased to Rs. 5,491 crore in Q1 FY27, compared to Rs. 4,170 crore in Q4 FY26. The company has maintained steady quarterly growth from Rs. 2,286 crore in Q1 FY26, reflecting rising investor participation, healthy fund inflows, and a stronger presence in the asset management business.
Company Overview:
Billionbrains Garage Ventures Limited is a leading Indian fintech company and the parent of the Groww investment platform. Established in 2018 and based in Bengaluru, the company provides a digital platform for retail investors to access services such as stock broking, mutual fund investments, wealth management, and other financial products, making investing simple and accessible across India.
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