Groww shares decline 7% after Rs 3,708 crore block deal involving 2.8% equity

Shares of Billionbrains Garage Ventures, the parent company of broking platform Groww, fell nearly 7% on Friday to an intraday low of Rs 208.55 on the NSE after a large block deal involving 17.42 crore shares, or 2.8% of the company's equity, was executed.

The stock had surged, touching an intraday high of Rs 225.75. Friday's decline comes after the sharp previous-session rally and may indicate profit-booking by investors.

The block deal was worth around Rs 3,708 crore, with the shares traded at an average price of Rs 215 apiece. The buyers and sellers involved in the transaction were not immediately identified.


The block deal comes amid investor focus on Groww's business outlook following regulatory changes affecting its equity derivatives segment.

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Groww Q2 performance

The company reported a net profit of Rs 725.60 crore for the second quarter of FY27, up 54% from Rs 471 crore posted in the same period last year. The net profit is attributable to the owners of the company. On a sequential basis, net profit dipped marginally by 1%.

The company’s revenue from operations came in at Rs 1,501 crore, marking a 47% increase from Rs 1,019 crore posted in the corresponding quarter of the previous financial year.

EBITDA on a sequential basis gained 1% to Rs 968 crore from Rs 960 crore in the first quarter. Margins over the same period improved by 60 basis points to 64.5% from 63.9% in the previous quarter.

During the quarter, Groww added 11 lakh new transacting users (NTUs), driven by primary market activity. Around 42 lakh users applied for equity IPOs through the platform, giving it a 22% share of total allotments.

The company saw increased contributions from most products, including margin trading facility (MTF) and commodity derivatives. However, the contribution of equity derivatives to total income fell by 12.2 percentage points year-on-year (YoY), reflecting market adjustments to the new client-level activity framework (CAS). Groww expects this contribution to recover once the recommendations in SEBI’s consultation paper take effect.

Groww AMC’s AUM rose 145% YoY to Rs 7,179 crore from Rs 2,928 crore. The share of actively managed AUM increased to 57% from 47%. AMC revenue grew 131% YoY during the quarter, while it reported a net loss of Rs 8.3 crore.

Also Read | Groww Q2 Results: Cons net profit surges 54% YoY to Rs 726 crore; revenue jumps 47%

Groww share price

In the last one week, the stock gained 9.94%. In the last one month, the stock went up 9.68% and nearly 36.44% in the current calendar year so far.

Disclosure: This article has been written by Surbhi Khanna, who is not a SEBI-registered Research Analyst or an investment advisor . Surbhi Khanna does not hold any financial interest in Economic Times as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of the EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.