Indian online brokerage Groww's quarterly profit drops on higher expenses (updated)

Motilal Oswal Financial Services

14/01/2026 07:51

Rewrites, adds details of investment, updates shares

Jan 14 (Reuters) - Billionbrains Garage Ventures BILO.NS, the parent company of Indian online brokerage firm Groww, reported a rise in adjusted profit for the third quarter on Wednesday and announced that State Street will invest in its asset management arm.

        Groww, India's largest online investment platform by active users, has been steadily widening its user base amid a retail trading frenzy in the world's most populous country.

The firm, which competes with Angel One ANGO.NS, Motilal Oswal Financial Services MOFS.NS and Zerodha, offers trading in equities, mutual funds and fixed-income products.

Groww posted a consolidated net profit of 5.47 billion rupees ($60.64 million) for the quarter ended December 31, down from 7.57 billion rupees a year ago.

However, its adjusted income grew 24% from a year earlier. The company clocked a one-time gain of 3.18 billion rupees on its expense account in the year ago quarter due to the cancellation of some employee-related incentives.

The broker also said that State Street Investment Management will invest 5.8 billion rupees into its asset management arm, Groww AMC, marking the U.S.-based investment firm's foray into India's rapidly-growing online investment platform market.

        State Street will hold a voting power of not more than 4.99% in the asset manager.

        Groww was founded almost a decade ago and got listed on the stock market last year. Its active users have climbed to 16 million, rising 8% from last quarter, a filing showed.

The company reported a nearly 25% year-on-year rise in revenue from operations to 12.16 billion rupees, with expenses of 5.16 billion rupees.

        It recorded a charge of 53.05 million rupees in the December 2025 quarter tied to changes to India's labour codes.

Shares of the firm closed 1% higher at 163 rupees each in Mumbai.

($1 = 90.2013 Indian rupees)

 (Reporting by Komal Salecha in Bengaluru; Editing by Sumana Nandy, Janane Venkatraman and Mrigank Dhaniwala)

 ((Komal@thomsonreuters.com;))