Shares of Groww rose more than 8 percent on January 16 following the company’s Q3 FY26 results and a brokerage report by Motilal Oswal.
The recently listed online trading platform reported a 16 percent year-on-year increase in revenue for the quarter ended December 2025, while margins improved due to revenue growth and largely stable expenses. However, net profit declined during the quarter.
Groww reported net profit of ₹547 crore for the December quarter, down 28 percent compared with the same quarter last year. Total revenue for the quarter increased 16 percent year-on-year to ₹1,261 crore.
Motilal Oswal said revenue growth supported margin improvement during the quarter, although profitability was impacted by the decline in net profit. The brokerage maintained its ‘Buy’ rating on Billionbrains Garage Ventures (Groww) and set a target price of ₹190 per share.
The target price implies an upside of around 16 percent from the previous close of ₹164. Motilal Oswal said it revised earnings per share estimates for FY27 and FY28 upward by 2 percent, citing a b margin trading facility book and a better-than-expected start in the commodities trading segment.
On this basis, the brokerage revised its target price to ₹190.
During the December quarter, margin improvement was driven by revenue growth, while a large portion of the company’s costs remained stable. Management indicated that employee-related and marketing expenses could rise by 10 percent to 20 percent in the coming period.
New product segments, including commodities trading, loans against shares, and wealth management, contributed to revenue during Q3. On a quarter-on-quarter basis, profit and revenue increased by 25 percent and 19 percent, respectively.
Motilal Oswal also noted that Groww has entered into an investment agreement worth ₹580 crore with US-based State Street Global Advisors. Following the investment, State Street Global Advisors will hold 4.99 percent voting power in Groww’s asset management company.
The brokerage said the investment is expected to support the expansion of Groww’s wealth management and asset management businesses and provide additional capacity to scale its product segments.
The stock’s rise followed the Q3 results announcement and the brokerage’s ‘Buy’ rating.
