Groww says ‘low-quality’ F&O traders are exiting. Why it thinks that’s good for business

Groww

Newly-listed stock broking platform Groww said it is witnessing a clear shift in the composition of its user base, with lower-quality F&O traders exiting the platform while high-quality users continue to grow and transact more actively.

According to the management, Average Orders Per User (AOPU) has risen in the range of 10–20 percent, driven primarily by more engaged and experienced traders. These users, the company said, understand F&O products better and contribute meaningfully to overall turnover.

During the company’s earnings call, cofounder and CFO Ishan Bansal said that users who earlier placed a significantly lower number of orders with much smaller turnover had exited, allowing the platform to cater to customers who “understand F&O as a product better.”

The company noted that although overall user growth in Q3 and Q4 of last year remained modest, the performance of its core trading cohort has strengthened sharply.

Groww described this churn as healthy for both the company and the broader industry.

The commentary comes as Groww's rival Zerodha’s founder Nithin Kamath has publicly flagged that F&O curbs and any potential ban on weekly options could shave off as much as 40 percent of revenues and may eventually force brokers to rethink their “zero brokerage” models.

The commentary also comes on the back of Groww’s latest quarterly results, where net profit rose about 12 percent year-on-year to roughly Rs 471 crore in Q2 FY26, even as revenue declined year-on-year but improved sequentially and expenses fell sharply. Active users grew to about 14.8 million, helping support margins despite F&O headwinds.

SEBI has rolled out a series of derivatives reforms since late 2024, with the most significant rules kicking in from October 1, 2025.

The regulator has introduced a revised Market-Wide Position Limit (MWPL) framework linked to free-float market cap and cash-market delivery volumes, alongside new individual position limits for single-stock derivatives and additional risk controls. Earlier changes, implemented from November 21, 2024, had already increased F&O lot sizes and shifted weekly index expiries exclusively to Nifty and Sensex.