Groww Shares Snap Two-Day Rally as Q1 Profits Soar 94% Amid Bullish Brokerage Upgrades

Groww Shares Snap Two-Day Rally as Q1 Profits Soar 94% Amid Bullish Brokerage Upgrades​

Shares of Billionbrains Garage Ventures, the parent company of Groww, experienced a pullback on Thursday after an initial period of significant appreciation. The stock fell nearly 2% to reach Rs 212 at 10:55 am, marking a decline of Rs 4.33 from previous levels.

This correction follows a two-day winning streak where the stock had gained approximately 9%. Despite this recent dip, market sentiment remains largely positive following the company's latest financial disclosures.

Robust Q1 FY27 Financial Performance​

Groww reported a massive surge in its consolidated net profit for the first quarter of FY27. The company posted a net profit of Rs 735 crore, representing a sharp 94.44% year-on-year increase from the Rs 378 crore reported in the same period last year.

Revenue from operations also showed significant growth, rising 66% year-on-year to hit Rs 1,504 crore. This compares to Rs 904 crore in the corresponding quarter of the previous financial year. On a sequential basis, net profit grew by 7% to Rs 686 crore while revenue figures remained broadly stable.

The company's EBITDA metrics further highlight its operational expansion. The EBITDA for the quarter stood at Rs 971 crore, marking a 101% year-on-year jump from Rs 483 crore. On a sequential basis, the EBITDA rose by 3% compared to the Rs 939 crore reported in the prior period.

Brokerages Maintain Bullish Outlook Despite Momentum Softening​

Despite Thursday's price action, several major brokerages have maintained or upgraded their positions on the stock. Motilal Oswal reiterated a BUY rating with a revised target price of Rs 250, based on a 38x FY28E EPS. The firm noted that while cash and derivatives revenue were lower, they were offset by higher MTF revenue and improved operational efficiency.

Citi also maintains a BUY rating and has raised its target price from Rs 230 to Rs 255. While the brokerage observed that business momentum had softened and active user additions in the broking business had moderated, it expects new products to provide potential upside for the stock.

In a significant move, JM Financial upgraded Groww from a SELL to a BUY rating. The brokerage raised its target price to Rs 250 from Rs 170, which implies a 15.5% upside. This upgrade was driven by stronger growth visibility and improving operating leverage within the company's portfolio.

Resilience Amidst Moderate Trading Activity​

Analysts highlighted Groww's ability to deliver a resilient performance even as retail trading activity moderated from its Q4 FY26 peak. The firm's ability to maintain steady performance during these periods has bolstered confidence in its long-term growth outlook.

Investors will continue to monitor the stock as it balances recent price volatility against strong Q1 fundamentals. The combination of a 94% profit jump and consistent "Buy" ratings from top-tier brokerages remains the primary driver for the stock's current trajectory.