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Shares of newly listed Billionbrains Garage Venture rebounded sharply on Friday, rising as much as 6% to Rs 166 on the BSE ahead of its Q2 results
Groww Share
Groww Share Price: Shares of newly listed Billionbrains Garage Venture, the parent company of online brokerage Groww, rebounded sharply on Friday, rising as much as 6% to Rs 166 on the BSE ahead of its Q2 results. The recovery comes after a steep 17% drop over the previous two sessions, following the stock’s explosive post-listing rally. The company will report its second-quarter earnings later today.
Sector sentiment, however, remains subdued. According to Prashanth Tapse, Sr VP and Research Analyst at Mehta Equities, most Indian brokerage firms came under pressure in Q2 amid a slowdown in overall trading activity.
A decline in derivatives volumes—triggered by recent regulatory tightening—has weighed on revenues across the industry. With speculative and high-frequency traders scaling back, earnings have weakened for nearly all major brokerages. The impact has been particularly visible among the largest players, with the country’s second-biggest retail broker reporting a 20–21% decline in revenue and a 40–50% drop in profit, one of its toughest quarters in recent years.
Against this backdrop, expectations around Groww’s Q2 performance remain balanced. While sector-wide softness persists, Groww may still deliver stable to mildly positive revenue growth, supported by its large user base. The company has also intensified its cross-selling efforts, offering more investment products and tools to users—an approach that may help support Q2 numbers.
Long-term sentiment remains constructive. Groww’s dominant digital platform, low customer acquisition costs, and scalable model continue to underpin its premium valuations. Its strong profitability metrics reinforce that view: Groww posted a 47% net profit margin (vs Angel One’s 22.3%) and a 37.57% return on net worth (vs Angel One’s 20.85%).
Groww shares, which listed at a 14% premium on November 12, surged 94% within a week as retail investors rushed in amid post-listing FOMO, having earlier skipped the IPO due to muted grey market signals.
Analysts note that SEBI’s planned tightening in the futures & options segment could pressure near-term margins, given the segment’s meaningful contribution to industry revenue.
The IPO was subscribed 17 times, driven by strong QIB demand at over 22 times. Retail investors subscribed 9 times and NIIs 14 times. The optimism reflected Groww’s financial strength—FY25 PAT of Rs 1,824 crore, high return ratios, and an asset-light, scalable business model that the initial GMP failed to capture.
At around 9:35 pm, Groww shares were trading at Rs 165, up 5.4% from the previous close.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
November 21, 2025, 10:20 IST
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