Shareholder letter
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Shareholders’ letter Q2 FY27
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Groww Shareholders’ Letter – Q2 FY27 Consolidated Financial Highlights T otal Income +44% Y oY ₹1,536 Cr ₹1,549 Cr ₹1,541 Cr ₹1,261 Cr ₹1,071 Cr Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 ₹604 Cr Q2 FY26 ₹721 Cr Q3 FY26 EBITDA +60% Y oY ₹939 Cr Q4 FY26 ₹971 Cr Q1 FY27 ₹969 Cr Q2 FY27 ₹471 Cr Q2 FY26 ₹547 Cr Q3 FY26 PAT +54% Y oY ₹686 Cr Q4 FY26 ₹735 Cr Q1 FY27 ₹725 Cr Q2 FY27 01
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Groww Shareholders’ Letter – Q2 FY27 Summarizing Our Performance Our Platform 2.4 Cr ₹3.9 L Cr +27% Y oY +46% Y oY T otal Transacting Users T otal Customer Assets Q2 FY26 Q2 FY27 Unit Economics Q2 FY27 vs. Q2 FY26 ₹1,017 Cr Revenue ₹1,497 Cr Excluding Groww AMC EBITDA Cost to Serve Operating Leverage Cost to Grow Cost to Operate ₹124 Cr (12.2%) ₹206 Cr (13.8%) ₹123 Cr (12. 1%) ₹105 Cr (7.0%) ₹148 Cr (14.5%) ₹202 Cr (13.5%) ₹622 Cr (61.2%) ₹983 Cr (65.7%) 02
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Groww Shareholders’ Letter – Q2 FY27 Summarizing Our Performance Our Market Share Across Products Mutual Funds Stocks ₹14,430 Cr ₹14,347 Cr ₹11,254 Cr ₹10,129 Cr 13.1 % 14.8% Q2 FY26 Q2 FY27 MF SIP Inflows Market Share Equity Derivatives ₹12,322 Cr ₹9,574 Cr Q2 FY26 Q2 FY27 Retail Market Share Stocks ADTO Margin Trading Facility 12.9% 15.4% 11.0% 8.6% Q2 FY26 Q2 FY27 Equity Derivatives Premium ADTO Retail Market Share ₹1,668 Cr 1.6% Q2 FY26 MTF Book ₹4,351 Cr 2.7% Q2 FY27 Market Share 03
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Groww Shareholders’ Letter – Q2 FY27 Investors’ T op Of Mind Q1. What were the key developments in Q2 FY27? Our consolidated Total Income grew 44% Y oY, with 27% growth in Total Transacting Users and 46% growth in Total Customer Assets. We added 11 lakh NTUs during the quarter, propelled by primary market activity. 42 lakh users applied for equity IPOs via Groww, resulting in a 22% market share in total allotments. We saw increased contribution across most products, like MTF and Commodity Derivatives. While the share of Equity Derivatives in Total Income declined 12.2pp Y oY, driven by market adjustments to CAS, we believe this will recover once the recommendations from SEBI’s consultation paper go into effect. Consolidated expenses increased 29% Y oY, with PAT 54% higher Y oY, delivering a PAT margin of 47% (+3.0pp Y oY). We continue to scale our new businesses, with our Wealth Assets crossing ₹10,000 crores and our AMC AUM expanding 145% Y oY to ₹7,179 crores. Q2. What is the revenue contribution from each product? T otal Income mix, by Products (% Share) 56.9% 54.8% 44.8%53.5% 51.9% 17 .4% 16.1% 15.6%16.5% 6.2%17 .8% 4.9% 10.1%4.5% 8.0%6.9% 8.4%7 .0%7 .4% 7 .9% 8.4% Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Equity Derivatives Stocks Commodity Derivatives MTF Float PL + LAS Other Operating Income Other Income We have changed the revenue classification to better reflect the evolving nature of our business, changing Treasury to Other Income, moving IPO and B SDA revenue from Stocks revenue into Other Operating Income and delayed payment charges from Other Operating Income into Float. 04 6.2% 1.9% 4.9% 0.2% 4.7% 3.5% 5.6% 5.9% 4.3% 3.6% 5.2% 3.3% 2.0% 5.5% 2.1%3.1% 5.9% 4.8% 2.5%
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Groww Shareholders’ Letter – Q2 FY27 In Q2, we saw increased contribution from MTF (+5.5pp Y oY), Commodity Derivatives (+6.0pp Y oY), and Other Operating Income (facilitated by strong primary activity in the quarter), whereas Equity Derivatives activity was softer. The contribution of Stocks, which comprises brokerage (70-75% of Stocks revenue) and other revenue (25-30%) which includes DP, DDPI, pledge charges and autosquareoff, also decreased marginally Y oY . While this quarter’s quantum was outsized, broadly, we expect the growth of products which are not yet fully penetrated, like MTF and Commodity Derivatives, to be higher, leading to increased contribution from them in the coming quarters. Q3. What was the impact of the Closing Auction System (CAS) on your business? Effective 3 August 2026, SEBI introduced the Closing Auction System (CAS) for F&O eligible stocks, replacing the earlier Volume-Weighted Average Price (VWAP) method with a 20-minute closing auction (3:15 PM to 3:35 PM). During the initial adoption phase, a disparity emerged between the 3:15 PM reference price (3:00–3:15 PM VWAP) and the equilibrium price published from 3:20 PM, leading to a decline in volumes across the industry. While our Equity Derivatives revenue declined 14.3% QoQ, the bulk of which we attribute to CAS, this was in-line with the decline that the industry has seen. The consultation paper published by SEBI proposes to delink derivatives settlement from CAS closing prices, which, if implemented, should help in normalising trading activity. Q4. What caused the increase in expenses this quarter and is this expected to be the run rate going forward? T otal Expense Walk QoQ ₹5 Cr ₹42 Cr₹13 Cr₹13 Cr₹15 Cr ₹514 Crin Cost to O perate due to CS R ₹510 Cr A I- related increaseO ne - time client reimburs - - ements in Cost to Grow (no IP L spends in Q2) largely due to higher trading days Cost to Ser v e Q1 FY27 Expenses Q2 FY27 Expenses T otal expenses for the quarter here is the sum of Cost to Ser v e , Cost to Grow , and Cost to O perate (excluding Groww A M C). 05
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Groww Shareholders’ Letter – Q2 FY27 This quarter’s increase in Cost to Serve was driven by higher tech costs largely due to higher trading days, one-time reimbursements to clients for abnormal trades1, and inflation in compute costs due to AI and other factors. Typically, quarters with higher trading days tend to have higher Cost to Serve. We expect the inflation-driven costs to remain a part of the operational baseline run rate going forward. This quarter’s Cost to Operate included ₹5 crores of CSR expenses, with a further ~₹28 crores expected in H2 FY27. Q5. How is the company investing in its operating business? While we received an investment of ₹580 crores this quarter from State Street Global Advisors, Inc., we continue to deploy cash into our MTF, PL and LAS books (₹1,915 crores) and repay our debt (₹203 crores), bringing our cash balance from ₹3,893 crores at the start of H1 FY27 to ₹3,849 crores by the end. Cash Flow Walk ₹1,568 Cr ₹1,915 Cr ₹3,893 Cr Operating Cash M T F PL L A S ₹203 Cr Debt R epayment ₹74 Cr Capex & Change in WC ₹580 Cr SSG A Investment ₹3,849 Cr Opening Cash as of H1 FY27 Closing Cash Cash balance includes Fixed Deposits, Investments in MFs, Investment in Securities including Government Securities and NCDs. 1 Stemming from an operational issue at a third-party Market Infrastructure Institution. 06
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Groww Shareholders’ Letter – Q2 FY27 Q6. Could you please provide an update on your Wealth offerings? We completed the Fisdom integration during the quarter, which will now enable us to provide Wealth offerings across multiple platforms. Currently, we provide the following products across our platforms: Groww: Bonds and MF Prime W: Mutual Funds, Insurance, AIF, PMS, in-house MF PMS, supported by wealth partners Fisdom: Mutual Funds, supported by bank partners We will continue to expand the suite of wealth products being offered across all our platforms. This consolidation is reflected in our Unit Economics and KPI Handbook. Q7 . How has the performance of Groww AMC been? Groww AMC’s AUM grew 145% Y oY from ₹2,928 crores to ₹7,179 crores, with the share of actively managed AUM increasing from 47% to 57%. Revenue for the AMC continued to grow in the quarter, up 131% Y oY, while the bottom-line was -₹8.3 crores. 07
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Groww Shareholders’ Letter – Q2 FY27 Glossary KPIs Definitions Platform Metrics T otal Transacting Users1 Total Transacting Users is the sum total of new transacting users acquired as of the end of the reporting period whereby a 'New Transacting User' (“NTU”) is a user who has (i) deposited or invested ₹1,000 or more and has undertaken a transaction, or (ii) has taken a loan for the first time. T otal Customer Assets Total Customer Assets are defined as the sum of the (a) value of assets held by users in demat accounts across our platforms, (b) value of Mutual Funds, Alternative Investment Funds, Fixed Deposits, and Portfolio Management Services holdings of users invested through our platforms, and (c) value of customer funds held by users on our platforms. The value of assets reported is as on the last day of the reporting period. Financial Metrics2 Revenue from Operations Revenue from Operations. Cost to Serve Summation of (a) Software, server and technology costs and (b) Transaction and other related charges. Cost to Grow Marketing and business promotion expense. Cost to Operate Total expenses excluding (a) finance costs, (b) depreciation and amortisation expense, (c) marketing and business promotion expenses, (d) software, server and technology expenses and (e) Transaction and other related charges. T otal Income Total Income, as presented in the financials. EBITDA EB ITDA is defined as profit for the period / year plus (i) Total tax expense, (ii) Finance costs, (iii) Depreciation and amortisation expense, and (iv) Share of net loss of associate accounted for using equity method (net of tax) less Other income. EBITDA Margin Refers to EB ITDA, as a percentage of Revenue from Operations PAT Profit for the period / year, as presented in the financials. PAT Margin Refers to Profit for the period / year, as a percentage of Total Income. Product Metrics MF SIP Inflows Defined as the total value of SIPs purchased through our platforms during the reporting period. Stoc k s ADTO 3 Defined as cumulative turnover in Stocks during the period divided by the total number of trading days in the reporting period. E q uity Derivatives Premium ADTO Defined as cumulative turnover in E quity Derivatives (that is the notional turnover for futures and premium turnover for options) during the reporting period divided by the total number of trading days in the reporting period. MTF Boo k Refers to “ L oan - Margin Trading Facility”, vi z ., MTF outstanding (funded) book as on the last day of the reporting period. Groww AMC Active AUM Assets under management in " Active funds " , with the latter being defined as those funds in which the Fund Manager takes an active role in making investment decisions, dynamically choosing to buy, hold, or sell underlying securities and selecting specific stocks. 1Metric is not de - duplicated across our platforms . 2KPI may apply to Billion b rains Garage V entures Ltd . / Groww platform / Fisdom / Groww AMC , as specified in relevant section . 3 ' Stoc k s ' includes E q uities , ETFs , Rights Entitlements , Preference Shares , InvIT s , REIT s , W arrants , Pass Through Certificates . " Our platforms " here refer to the Groww app , the Fisdom app , and the W app . User - level metrics are not de - duplicated across the three platforms . 08
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Groww Shareholders’ Letter – Q2 FY27 Disclaimer Forward-looking Statements This letter contains certain statements that are or may be forward-looking statements, including without limitation, statements relating to Groww’s business objectives, strategies, results of operations, financial condition, strategic direction, future prospects, estimates of revenue growth, future financial or operating performance, and overall industry outlook. These statements can be recognised by the use of words such as “expects”, “plans”, “will”, “continue”, “think”, “believes” or other words of similar meaning. These forward-looking statements are not guarantees of future performance but represent only the Company’s current intentions, beliefs, expectations, assumptions and estimates, and are subject to risks and uncertainties that are difficult to predict and are outside the control of the Company. These statements involve risks and uncertainties which include, but are not limited to, regulatory changes pertaining to the industry in which our Company has businesses and our ability to respond to them, our ability to successfully implement our strategy, our growth and expansion, technological changes, our exposure to market risks, general economic and political conditions in India and globally which have an impact on our business activities or investments. Actual results may differ materially from those expressed or implied in such forward-looking statements. Against the background of these risks, uncertainties, and other factors, readers of this letter/document are cautioned not to place undue reliance on these forward-looking statements. The Company assumes no responsibility to update forward-looking statements or to adapt them to future events or developments. The information contained in this document is in summary form and has not been independently verified. No representation, warranty, guarantee, or undertaking, express or implied, is or will be made as to the accuracy, completeness, correctness, or fairness of the information, estimates, projections, and opinions contained in this document. Potential investors must make their own assessment of the relevance, accuracy, and adequacy of the information. Furthermore, past performance of the Company is not necessarily indicative of its future results.This document does not constitute or form part of and should not be construed as, directly or indirectly, any advertisement, offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company by any person. Use of non-GAAP Measures In addition to our results determined in accordance with Ind AS, we believe the following Non-GAAP measures are useful to investors in evaluating our operating performance. We use the following Non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Non-GAAP financial information, when taken collectively with financial measures prepared in accordance with Ind AS, may be helpful to investors because it provides an additional tool for investors to use in evaluating our ongoing operating results and trends and in comparing our financial results with other companies in our industry because it provides consistency and comparability with past financial performance. However, our management does not consider these Non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with Ind AS. Non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with Ind AS. Non-GAAP financial information may be different from similarly titled Non-GAAP measures used by other companies. The principal limitation of these Non-GAAP financial measures is that they exclude significant expenses and income that are required by Ind AS to be recorded in our financial statements, as further detailed below. In addition, they are subject to inherent limitations as they reflect the exercise of judgement by management about which expenses and income are excluded or included in determining these Non-GAAP financial measures. Investors are encouraged to review the related Ind AS financial measures and the reconciliation of Non-GAAP financial measures to their most directly identifiable Ind AS financial measures included below and to not rely on any single financial measure to evaluate our business. 09