Billionbrains reported flat Q2 FY27 revenue at ₹1,502 crore and a 1.4% sequential drop in net profit to ₹725 crore on Wednesday, October 14. While mutual fund and wealth businesses grew, the firm said "equity derivatives remained under pressure" following new SEBI rules. Still, yearly profits jumped by 53.9%.

Groww parent Billionbrains reported flat Q2 FY27 revenue at ₹1,502 crore and a 1.4% sequential drop in net profit to ₹725 crore. However, on a year-on-year basis, revenue surged 47.4% and net profit jumped 53.9% compared to the same period last year.

Billionbrains Garage Ventures, the parent company of stockbroking platform Groww, on Wednesday, October 14, reported a 1.3% quarter-on-quarter (QoQ) decline in consolidated net profit to ₹725.7 crore for the September quarter compared with ₹735.04 crore in the preceding quarter.

Revenue from operations for Q2FY27 remained largely unchanged at ₹1,501.5 crore, against ₹1,501.42 crore in the June quarter. Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at ₹963.8 crore, marginally higher than ₹963.37 crore in the previous quarter. The EBITDA margin was unchanged at 64.2%.

Groww added 11 lakh new transacting users in the September quarter, while its mutual fund and wealth management businesses continued to expand. Equity derivatives remained under pressure following the introduction of the Closing Auction System (CAS), management said.

On a year-on-year (YoY) basis, however, the company reported strong growth. Revenue from operations rose 47.4% from ₹1,018.74 crore in Q2FY26, while net profit increased 53.9% from ₹471.34 crore in the year-ago quarter.

Total income, including other income, was ₹1,540.54 crore in Q2 FY27, compared with ₹1,548.67 crore in Q1FY27 and ₹1,070.80 crore in Q2 FY26. Profit before tax stood at ₹983.86 crore, against ₹992.27 crore in the preceding quarter and ₹637.68 crore a year earlier.

For the first half of FY27, revenue from operations rose to ₹3,002.95 crore from ₹1,923.14 crore in the corresponding period last year. Consolidated profit for the six months increased to ₹1,459.74 crore from ₹849.69 crore in H1FY26.

Equity derivatives remain under pressure

Groww said its equity derivatives revenue declined 14.3% QoQ, with the management attributing most of the decline to the introduction of the Closing Auction System (CAS).

Effective August 3, 2026, the Securities and Exchange Board of India (SEBI) introduced CAS for stocks eligible for futures and options trading. The system replaced the earlier Volume-Weighted Average Price (VWAP) method with a 20-minute closing auction from 3:15 p.m. to 3:35 p.m.

According to the company, during the initial adoption phase, a disparity emerged between the 3:15 pm reference price, based on the 3 pm to 3:15 pm VWAP, and the equilibrium price published from 3:20 pm This contributed to a decline in trading volumes across the industry.

In its shareholder letter, management said the decline in Groww's equity derivatives revenue was in line with the broader industry trend.

SEBI's consultation paper proposes delinking derivatives settlement from CAS closing prices. Groww said implementing the proposal should help normalise trading activity.

Management also said it expects the contribution of less-penetrated products, particularly margin trading facility (MTF) and commodity derivatives, to increase in the coming quarters.

Product diversification gains traction

While equity derivatives faced pressure, Groww reported increased contributions from MTF, commodity derivatives and other operating income, supported in part by activity in the primary market.

The company's disclosed product revenue mix showed the following changes between Q1 FY27 and Q2 FY27:

The share of equity derivatives declined by approximately seven percentage points, while MTF and commodity derivatives increased their contributions.

The stocks category includes brokerage, which accounts for approximately 70-75% of stocks revenue, along with depository participant (DP) charges, DDPI, pledge charges and auto-square-off charges.

Groww also noted changes to its revenue classification to reflect the evolving business mix. Treasury income is now classified as other income; IPO and Basic Services Demat Account (BSDA) revenue has moved from stocks revenue to other operating income; and delayed payment charges have moved from other operating income to float.

The company said the increased contribution from less-penetrated products could support further diversification in its revenue mix.

11 lakh new transacting users added in Q2

Groww added 11 lakh new transacting users (NTUs) during Q2 FY27, supported by primary-market activity.

The shareholder letter said 42 lakh users applied for equity initial public offerings (IPOs) through Groww during the quarter, giving the platform a 22% share of total allotments.

* The company's platform metrics also showed:

* Total transacting users: 2.4 crore, up 27% YoY.

* Total customer assets: ₹3.9 lakh crore, up 46% YoY.

* Mutual fund systematic investment plan (SIP) inflows: ₹14,347 crore, up 8% QoQ from ₹13,229 crore.

* Stocks average daily turnover (ADTO): ₹14,430 crore, down 9% QoQ from ₹15,801 crore.

* Equity derivatives premium ADTO: ₹12,322 crore, down 21% QoQ from ₹15,661 crore.

* Average MTF funding book: ₹4,351 crore, up 15% QoQ from ₹3,775 crore.

The operating metrics reflect the divergence between equity derivatives activity and other parts of Groww's business. SIP inflows and MTF funding increased, while stocks turnover and equity derivatives premium turnover declined sequentially.

State Street Global Advisors investment

In its standalone results, the company recognised a gain of ₹81.1 crore from the sale of an investment in a subsidiary during the quarter.

The filing said the investment transaction involving State Street Global Advisors in Groww Asset Management Company (AMC) was completed on August 4, 2026. Following the transaction, State Street Global Advisors holds 4.85% of the voting rights and a 22.94% economic interest in Groww AMC.

Groww AMC AUM crosses ₹7,000 crore; wealth assets exceed ₹10,000 crore

Groww's newer businesses continued to scale during the quarter, with growth in its asset management and wealth offerings.

Groww Asset Management Company's assets under management (AUM) increased 31% QoQ to ₹7,179 crore from ₹5,491 crore in Q1 FY27. On a YoY basis, AMC AUM rose 145% from ₹2,928 crore.

The share of actively managed AUM increased to 57% from 47% a year earlier. AMC revenue grew 131% YoY during the quarter, although the business reported a bottom-line loss of ₹8.3 crore.

The company also said its wealth assets crossed ₹10,000 crore.

Composite scheme of arrangement

The company also noted a composite scheme of arrangement involving its subsidiaries. The proposed scheme includes the demerger of identified business undertakings of Finwizard Technology into Groww Wealth Tech and Fisdom Broking, and the amalgamation of Finwizard Technology Services and Finwizard Securities into Finwizard Technology.

The scheme remains subject to the requisite approvals, with an appointed date of April 1, 2027.

Shares of Groww are fluctuating between gains and losses after the results announcement, currently trading 0.7% lower on Wednesday at ₹192.54. The stock is up 24% so far this year.