Stock broking firm Groww's revenue more than doubles to Rs 2,900 crore in FY24, net profit at Rs 298 crore

Groww also runs a credit business, which is not reflected here. GIT is the main operating entity of the Groww Group and is a wholly owned subsidiary of Billionbrains Garage Ventures Private Limited.

During August, Groww had close to 1.2 crore active investors as per the National Stock Exchange data.

Groww's rival, Nithin Kamath-led Zerodha reported revenue of Rs 8,320 crore and net profit of Rs 4,700 crore. Zerodha had around 79 lakh active investors on its platform.

According to ICRA, despite Groww foraying into the margin trading facility (MTF) business, which will lead to higher dependence on borrowings, its financial leverage is expected to remain comfortable because of the market leadership in broking.

However, broking firms are bracing for higher taxes on trading, lower exchange rebates and possible restrictions on retail futures and options trading during the current financial year. Most broking firms could see a 30-50 percent hit to the topline during the second half of FY 25.

"GIT’s high dependence on capital markets, which are inherently volatile and cyclical in nature. Moreover, a sizeable share of the revenues is from the futures and options (F&O) segment (~75-80% of the net operating income; NOI). Further, it remains susceptible to regulatory changes as well as technological risks," ICRA said in the note.

Late last year, Groww surpassed Zerodha as the largest broking company and this May, the company saw the total number of active traders on the platform grow to over 10 million users.

There are more than 160 million demat accounts in the country, but the number of active investors is around 50 million according to exchanges’ data.