Inside Groww’s Revenue Mix: What Comes After Broking

In the past decade, Groww has transformed from a simple mutual funds app to a comprehensive investment and wealth management super app in India. With over 1.31 crore active broking clients and a market capitalization of around ₹1.24 lakh crore ($14 billion), Groww has established itself as one of the largest retail investment ecosystems in the country.

Despite tighter regulations and higher taxes on futures and options, the company's operating revenue grew by 19% to ₹4,644.6 crore in FY26, and net profit increased by 14% to ₹2,083 crore. However, Groww has not surpassed its primary competitor, Zerodha, in terms of financial performance. Although Groww has nearly twice as many active broking clients as Zerodha, Zerodha still leads in terms of net profit and revenue.

Zerodha's revenue is nearly 1.9 times higher and profit is approximately 2.1 times larger than Groww's, although Zerodha's growth rate has decelerated in recent times. Groww is now focusing on diversification to bridge the gap between the two companies. As it expands across various verticals, its growth will rely on converting new products into scalable revenue sources.

In Q1 FY27, stock and equity derivatives contributed 68.4% of Groww's total income, down from 75.7% in Q1 FY26. Nevertheless, this decline is not indicative of a contraction in these businesses but rather a result of the faster growth of new revenue streams. Motilal Oswal, an analyst, projects that Groww's newer businesses will grow faster than broking, with revenue reaching approximately ₹7,980 crore by FY28, with broking accounting for 67% of the total.

Nonetheless, this remains an analyst estimate, not an official guidance from Groww. Even if this projection holds true, it suggests that Groww's revenue mix will only change slightly, not dramatically.