The share price of Billionbrains Garage Venture, the recently listed parent company of Groww, has surged 12% in 2 days on the back of stellar Q4 numbers. Motilal Oswal Financial Services has raised the target price to Rs 235, implying an upside of more than 22% from the current market price. The international brokerage house, Jefferies, too, has raised the target price.
Motilal Oswal on Groww
Motilal Oswal maintained its ‘Buy’ call on the company. This upgrade came after the Q4 net profit jumped 1.22 times year-over-year (YoY), backed by strong broking activity in Q4FY26.
Groww’s broking revenue rose 78% YoY to Rs 1,150 crore, driven by 64% YoY growth in orders to 587.4 million as well as an increase in revenue per order to Rs 19.6, compared with Rs 18 in the same period of FY25. The company’s revenue from the derivatives segment grew 74% YoY and 26% sequentially to Rs 850 crore, benefiting from high market volatility due to the ongoing geopolitical tension. Groww’s retail option premium ADTO market share was 10.6%, up from 6.8% in Q4 FY25.
Market volatility helped newly added commodity derivatives
Apart from equity derivatives, commodity derivatives also benefited from market volatility, with revenue growing 39% QoQ and contributing 4% to the company’s total operating revenue. Launched in Q3 FY26, commodity derivatives currently have 393,000 active users, implying an attach rate of 2.4% in overall active users.
Margin Trading Facility (MTF) revenue grew 42% QoQ to Rs 110 crore (Rs 17 crore in Q4 FY25), with MTF book scaling to Rs 2,810 crore at the end of Q4 FY26, as against Rs 2,310 crore in Q3 FY26. The industry MTF book contracted sequentially, but Groww’s MTF book increased, resulting in a market share rise to 2.7%.
Jefferies on Groww
The international brokerage house, Jefferies, believes that the product velocity in Groww is similar to that of its US peer, Robinhood. Despite regulatory changes and weak markets over the last year, Groww has shown more resilience, greater ability to cross-sell and better profitability relative to its peer, Angel One.
It further mentioned that the fourth quarter earnings beat estimates, which was led by new initiatives. Still, there’s more left in the tank.
Pressing on the same point, the brokerage house said that the net profit surge was led by higher commodity and MTF revenue. MTF, commodities, and wealth accounted for 13% of Q4FY26 revenue compared to 1% in FY25.
“We believe Groww has several levers to drive 29% EPS CAGR over FY26-29,” said the brokerage. This includes, firstly, product velocity, similar to US peer, Robinhood. Secondly, client assets growing with vintage, Thirdly, the margin trading facility & wealth management adding 21% of revenue by FY29 (FY25: 1%). Lastly, a 700 basis points margin expansion led by operating leverage.
This led Jefferies to raise the target price to Rs 225 from Rs 210, implying an upside of over 15% from the current market price, while maintaining a ‘Buy’ rating.
Groww share price performance
The Groww share price has increased 5% in the last five trading sessions. The stock has given a return of 31% in the last one month and 62% since its listing.
