Shares of Groww surged nearly 10% on Monday, hitting a 52-week high of Rs 216 during the session. The stock opened at Rs 201 and touched a low of Rs 193.95 before moving higher, showing strong buying interest.
The sharp rise comes after strong quarterly earnings and positive views from brokerages, though some caution remains on valuations.
The main trigger behind the rally is strong earnings performance. The company, operated by Billionbrains Garage Ventures, reported a 122% jump in net profit to Rs 686 crore in the March quarter.
Revenue from operations also rose 87% year-on-year to Rs 1,505 crore, while EBITDA surged 142%, showing strong improvement in margins.
The growth was supported by rising user activity on the platform. Total transacting users increased 25% to 2.16 crore, while active users stood at 1.67 crore as of March 31, 2026.
Customer assets on the platform rose 36% to Rs 3 lakh crore, while net inflows remained strong at Rs 25,000 crore.
Trading activity, especially in derivatives, continues to drive revenue. Equity derivatives contributed 54.6% of total income in the quarter, slightly higher than earlier levels.
The company is also seeing growth in new segments such as margin trading and commodities, which are adding to its revenue mix.
WHAT BROKERAGES ARE SAYING
Global brokerage Jefferies has maintained a Buy rating on the stock and raised its target price to Rs 225, suggesting an upside of about 15%.
The brokerage said Groww has shown a strong recovery in trading volumes and better profitability compared to peers, even after regulatory changes and weak market conditions.
Motilal Oswal has also kept a Buy rating and raised its target price to Rs 235, indicating a potential upside of around 20%. It said the company continues to benefit from rising user adoption and strong product offerings.
However, not all brokerages are positive. JM Financial has maintained a Sell rating with a target price of Rs 150, implying a downside of over 20%.
The brokerage said while growth prospects remain strong, current valuations may be ahead of fundamentals and may not fully reflect risks.
The stock’s sharp rise shows strong investor confidence after the earnings. Growth in users, higher trading activity and strong revenue expansion are key positives.
At the same time, the mixed views from brokerages suggest that investors should be careful at current levels. While some see further upside, others believe valuations are already high.
The company itself has also flagged that while short-term volatility may support trading activity, a weak market could affect investor sentiment and user growth over time.
Overall, Groww’s performance shows strong business momentum, but the next move in the stock may depend on market conditions, trading activity and how earnings hold up in the coming quarters.
