Groww is outgrowing discount broking. Current valuations to punish execution missteps

Groww (Billionbrains Garage Ventures) reported Q1FY27 net profit of around 735 crore, nearly doubling year-on-year, on revenue of about 1,500 crore, up 66%, sending the stock up over 6% in two sessions. The broking-to-wealth platform continued diversifying, with equity derivatives falling to 52% of revenue from 56% a year ago, while MTF climbed to 8% and commodity derivatives to nearly 5%; Groww now holds an 11% share of equity derivatives (up from 7.2%) and about 29% retail share of commodity derivatives. At around 33 times FY28 estimated earnings following a 65% one-year rally, valuations leave limited room for execution missteps.