Billionbrains Garage Ventures Limited — Q3 FY26 earnings call

Call held 14 Jan 2026

Management summary

Billionbrains Garage Ventures Limited (Groww) reported a quarter of strong operational performance in Q3 FY26, marked by an expanding EBITDA margin of over 63% and improved user activation ratios. The company is actively integrating the Fisdom wealth management acquisition and progressing with a strategic partnership with State Street for its AMC business, pending regulatory approvals. While profit increased QoQ, it saw a YoY decline due to a prior-year one-off reversal, and management reiterated its focus on reinvestment over near-term dividends.

Highlights

  • EBITDA margin at 63% plus, driven by significant revenue growth and high fixed cost nature.

  • Broking transacting user activation ratio improved to 67-68%, indicating better user engagement.

  • Commodity Derivatives Active Users reached 0.26 million, showing traction in new product offerings.

  • MTF business continues strong growth, adding approximately INR600 crores quarterly and contributing 6% to total revenue.

  • Strategic partnership with State Street for AMC business is expected to accelerate capability building and global access.

Concerns

  • Net profit increased quarter-on-quarter but decreased year-on-year due to a one-off reversal in the prior year.

  • New labor laws resulted in INR2.5-3 crores provisioning for gratuity, with potential future changes.

  • Market conditions have led to a slowdown in new customer acquisition across the industry.

Key financials

  1. EBITDA Margin 63%
  2. Commodity Derivatives Active Users 2,60,000 users
  3. Broking Transacting Users Activation Ratio 67.5%
  4. Employees (excl. Fisdom) 1,350 employees -6.9%QoQ
  5. MTF Contribution to Revenue 6%
  6. Blended Realization per Order ₹19.9

What they filed

Q1 FY27: revenue up 53.0%, net profit up 81.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue802 676 544 623 688 −14%785 +16%963 +77%953 +53%
EBITDA412 876 291 357 423 +3%505 −42%651 +124%652 +83%
Net profit330 677 251 306 354 +7%428 −37%541 +116%555 +81%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • M&A State Street (AMC Business) Acquisition · Pending regulatory

    To build capability, gain global practices and knowledge base, and provide global access for Indian and foreign investors for products.

    Cash from primary and secondary infusion will be used to scale the AMC business.

    So on the investment that we are making in the asset management business, and especially the partnership with the State Street, see, we see that the asset management in general in India is a huge potential and the very, very high growth left in the next few decades. ... The cash which is coming in is coming through primary and secondary. We are also doing primary from our parent company in the asset management.
  • M&A Fisdom Acquisition · Integrated

    To consolidate wealth management offerings and build on existing Groww customers and erstwhile Fisdom business.

    Consolidation happened in October; integration is ongoing and will take time to scale.

    On the wealth side, again, we just recently, October is when we consolidated the acquisition. ... So still, yes. So still a little early in the integration part, because this is a full-fledged business and we are integrating a lot of these pieces.

Guidance & targets

Dividend

  • Dividend Payout Dividend · near future · High confidence Not expected in near future
    Sir, we have just got listed three months back and we are still in a very high growth phase. We are still building new businesses where we have raised money in the IPO also to invest in those businesses. And once our growth is probably letting us give dividend also, we will start giving dividend, but we are not expecting to give dividend in the near future.

    — Ishan Bansal

Wealth Management

  • Business Scale-up and Growth Wealth Management · quarter-on-quarter · Medium confidence Continue scaling and quarter-on-quarter growth
    So both of these businesses will continue scaling and quarter-on-quarter, we should see the scale-up and the growth going on from them.

    — Harsh Jain

MTF

  • Quarterly Additions MTF · every quarter · High confidence Roughly INR600 crores almost every quarter
    So, the way I think historically it has grown is roughly INR600 crores we are adding almost every quarter. I think this momentum is continuing from last three quarters and I think we see that momentum to continue in the future as well.

    — Ishan Bansal

EBITDA

  • EBITDA Growth EBITDA · future · Medium confidence Higher EBITDA if revenue grows faster
    If revenue grows faster, we'll be able to deliver higher EBITDA in the future as well.

    — Ishan Bansal

Costs

  • Variable Cost Growth Costs · High confidence Roughly 10% to 20%
    So both of these costs, basically, you can say will grow roughly 10% to 20%.

    — Ishan Bansal

What to watch in Q4 FY26

State Street Partnership Regulatory Approvals & Details

Next quarter
Current Partnership announced, regulatory approvals pending from SEBI.
Target Final contours and SEBI approval details.

Why it matters

This is a major strategic move for the AMC business, and its full impact depends on regulatory clearance and detailed implementation plans.

So we'll have to apply to SEBI with all these contours. Once they approve, then the final discussion points will come out from there.

Risks & concerns

  • Regulatory approvals for State Street partnership

    medium

    The State Street partnership requires SEBI approvals, and final details will emerge post-approval.

    So we'll have to apply to SEBI with all these contours. Once they approve, then the final discussion points will come out from there.

    Management acknowledged

  • Market conditions impacting customer acquisition

    medium

    The market for new customer acquisition has slowed down in the industry, impacting growth.

    market hasn't been that great. And hence the new acquisition in the industry level has actually slowed down.

    Management acknowledged

  • Engagement with unregulated products (e.g., crypto, prediction markets)

    medium

    Groww has consciously decided not to offer products that are not legal or in regulated space, with the exception of SLBM.

    So I think all the products that you just talked about are not really legal or not in the regulated space as of now. And hence, we have taken a conscious call not to do all of these products with the exception of SLBM, which we think is currently in a very nascent stage.

    Management avoiding

  • Retail losses in derivatives and SEBI scrutiny

    medium

    Management states that 80-90% of their users make profits, with very few customers incurring losses in derivatives.

    But when we look at the user as a whole, we see majority, or when I say majority, like 80%-90% of them actually make profits. There are very few customers who make losses.

    Analyst downplayed

  • Impact of new labor laws and gratuity provisioning

    low

    INR2.5-3 crores provisioning has been made for gratuity, with potential for future changes based on clarity.

    So there is, I think, already roughly INR2.5 crores to INR3 crores of provisioning that we have already taken for that from a gratuity perspective. And this is based on some assumptions. Obviously, as more clarity comes, this number might kind of change in the future as well.

    Management acknowledged

Q&A highlights

6 direct
State Street Partnership & AMC Business Roadmap Partial
And the broad contours will, they will get to know more in future and we'll talk about them.

Analysts sought clarity on the long-term strategy and financial impact of a significant strategic investment, but management indicated it's too early for detailed disclosure.

Asked by Supratim Datta

Wealth Management Differentiation & Integration Partial
But very early stage for us to talk about what will be the differentiator and how will it play out. We are working on different parameters on that.

Analysts probed the strategy for a new growth area, but management is still in early stages of defining the offering and integration.

Asked by Supratim Datta

Profitability & Dividend Policy Direct
Sir, we have just got listed three months back and we are still in a very high growth phase. We are still building new businesses where we have raised money in the IPO also to invest in those businesses. And once our growth is probably letting us give dividend also, we will start giving dividend, but we are not expecting to give dividend in the near future.

Clarifies the company's capital allocation strategy, prioritizing reinvestment for growth over immediate shareholder returns.

Asked by Madhavan S

Customer Acquisition Cost (CAC) Calculation & Trends Direct
So, CAC, Yes, sorry. Yes, CAC is, sir, overall spends that we do for marketing across the different functions, whether it's a brand or performance or content. That is the total cost and the new customers that we acquired on our platform.

Provides clarity on a key operational metric and how the company defines and manages its customer acquisition strategy, noting seasonality.

Asked by Nidhesh Jain

Broking Transacting User Activation Ratios Direct
So roughly this number was more closer to 60% earlier. Now it's close to like 67%, 68% now.

Indicates improved engagement and activation of existing users, driven by new product offerings like commodities and IPOs.

Asked by Dipanjan Ghosh

EBITDA Margin Progression & Cost Structure Direct
The EBITDA margin, if you look at it, is expanding because the revenue has grown significantly. And our variable cost is roughly like - 10% is roughly the variable cost. Rest all is more on the fixed nature.

Explains the drivers of margin expansion and the company's cost structure, indicating high operating leverage.

Asked by Gaurav Singhal

Demat Additions & Market Share Metrics Direct
So we don't actually focus on the Demat number because according to us that is like a vanity metric. We feel looking at NTU number and NSE publishes ATU numbers also, which are also a good way to kind of measure publicly available data that how the new users are actually getting added.

Clarifies the company's preferred metrics for tracking user growth and market share, distinguishing from commonly used industry metrics.

Asked by Abhijeet Sakhare

Competition in HFT/F&O & Tech Infrastructure Direct
So we are not into, I think you talked about HFT. We are not into HFT and all. As of today, the speed that customers are expecting, we are meeting those expectations.

Addresses concerns about intense competition in high-frequency trading and clarifies the company's focus on retail user experience rather than HFT.

Asked by Shweta Sharma

3 min read 6 chapters

Detailed narrative

AMC Business & State Street Partnership

Groww views the asset management business in India as having huge potential for growth over the next few decades. The recent partnership with State Street, one of the world's largest asset managers, is expected to accelerate Groww's capability building, enhance credibility, and provide global access for both Indian and foreign investors for products. This partnership involves a primary and secondary cash infusion into the AMC business from the parent entity, with regulatory approvals from SEBI still pending. Management aims to significantly scale the AUM and user base, leveraging global practices and knowledge from State Street.

Wealth Management Integration & Strategy

The acquisition of Fisdom was consolidated in October, and the integration process is ongoing. Groww is building out its wealth management offerings for both existing Groww customers and affluent clients. While it is still in a very early stage, management expects to see quarter-on-quarter scale-up and growth from both the acquired Fisdom business and new offerings to Groww's customer base. The focus is on building a full-fledged business with powerful technology and products for HNIs and wealth partners.

Operational Performance & Customer Metrics

The company reported 0.26 million active users in commodity derivatives at the end of December 2025. The activation ratio for broking transacting users improved to 67-68% from closer to 60% previously, driven by new offerings like commodities and IPOs. The blended realization per order on the stock side improved to INR19.9. The company recorded 5.4 million orders per day on the derivative side and 2.3 million orders per day on the stock side. The MTF segment is growing, adding roughly INR600 crores almost every quarter, and now contributes 6% to total revenue.

Financial Performance & Cost Structure

Groww's EBITDA margin is currently "63% plus." Management indicated that profit increased quarter-on-quarter, although it decreased year-on-year due to a one-off reversal in the prior year. EPS also showed an increase. The company's cost structure is characterized by approximately 10% variable costs, with the rest being fixed. Fixed costs, including appraisals and inflation, are expected to grow roughly 10-20%. Faster revenue growth is anticipated to lead to higher EBITDA in the future due to operating leverage.

Regulatory & Market Environment

The company has provisioned INR2.5-3 crores for gratuity related to new labor laws, with potential adjustments as more clarity emerges. Management noted that the market for new customer acquisition has slowed down in the industry due to less favorable market conditions, leading to a focus on optimizing existing customer engagement. Groww avoids unregulated products like crypto and prediction markets, focusing on regulated offerings like SLBM once it matures. They also noted that 80-90% of their users make profits, addressing concerns about retail losses in derivatives.

Product Diversification & Future Outlook

Groww's strategy involves diversification by growing new businesses faster than existing ones, increasing their contribution to overall revenue. They are not focused on high-frequency trading (HFT) but ensure their tech infrastructure meets customer speed expectations and provides high reliability, including a "Groww Lite" version for critical actions during market volatility. The company is still in a high growth phase and plans to reinvest capital from its IPO and ongoing operations into building new businesses, thus not expecting to declare dividends in the near future.

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