Equity Derivatives vs Stocks: Which Segment Is Powering...

Synopsis: Groww reported a 94.28 percent YoY jump in net profit, with Equity Derivatives contributing 52 percent of revenue, remaining the company’s biggest growth driver in Q1 FY27.

This Large-Cap Stock, engaged in providing technology-driven financial services, including digital investments, wealth management, stock broking, and personal finance solutions through its fintech platforms, jumped 7.68 percent after the company reported June quarterly results. In this article, you’ll discover whether Equity Derivatives or the Stocks segment was the key driver of Groww’s Q1 FY27 revenue and how each business contributed to the company’s overall performance.

With a market capitalization of Rs. 1,34,882.33 crores, the share of Billionbrains Garage Ventures Limited has reached an intraday high of Rs. 219.50 per equity share, rising nearly 7.68 percent from its previous day’s close price of Rs. 203.85. Since then, the stock has retreated and is currently trading at Rs. 215.70 per equity share.

Q1 FY27 Result Walkthrough

Coming into the quarterly results of Billionbrains Garage Ventures Limited, the company’s consolidated revenue from operations increased by 66.01 percent YOY, from Rs. 904.40 crore in Q1 FY26 to Rs. 1,501.42 crore in Q1 FY27, and slightly decreased by 0.26 percent QoQ from Rs. 1,505.37 crore in Q4 FY26.

In Q1 FY27, Billionbrains Garage Ventures Limited’s consolidated net profit increased by 94.28 percent YOY, reaching Rs. 735.04 crore compared to Rs. 378.35 crore during the same period last year. As compared to Q4 FY26, the net profit has increased by 7.09 percent, from Rs. 686.36 crore.The basic earnings per share increased by 80.30 percent and stood at Rs. 1.19 as against Rs. 0.66 recorded in the same quarter in the previous year, FY2026.

Operational Performance

Billionbrains Garage Ventures Limited reported EBITDA of Rs. 970 crore for the quarter, compared to Rs. 938 crore in the March quarter, reflecting a 3.4 percent sequential increase. The company’s EBITDA margin improved to 64.6 percent from 62.3 percent, expanding by 230 basis points. This improvement was mainly driven by lower operating and other expenses, indicating better cost control and improved operational efficiency during the quarter.

Income Mix Across Business Segments

In Q1 FY27, Equity Derivatives remained the company’s largest source of income, contributing 52.0 percent of total revenue. Although its share declined slightly compared to previous quarters, it continued to be the key driver of the company’s earnings. The Stocks segment was the second-largest contributor, accounting for 16.4 percent of total income. Together, these two segments generated nearly 68 percent of the company’s overall revenue.

Apart from these, the company earned income from several other business segments, which helped diversify its revenue. Float income contributed 8.1 percent, followed by Margin Trading Facility (MTF) at 8.0 percent, Treasury at 3 percent, and Commodity Derivatives at 4.9 percent. Smaller contributions came from PL + LAS (5.5 percent) and Other Income (2.1 percent). This balanced income mix shows that while trading-related businesses remain the main revenue drivers, other segments also provide steady support to the company’s overall performance.

Assets Under Management (AUM)

Groww AMC continued to witness strong growth in its Assets Under Management (AUM) during FY27. The company’s AUM increased to Rs.5,491 crore in Q1 FY27, up from Rs.4,170 crore in Q4 FY26. This follows steady growth throughout FY26, with AUM rising from Rs.2,286 crore in Q1, Rs.2,928 crore in Q2, and Rs.3,624 crore in Q3. The consistent increase in AUM reflects higher investor participation, strong fund inflows, and the company’s expanding presence in the asset management business.

Company Overview

Billionbrains Garage Ventures Limited is an Indian fintech company best known as the parent company of the Groww investment platform. Founded in 2018 and headquartered in Bengaluru, it operates a digital financial services ecosystem offering investing, broking, mutual funds, and other wealth management products to retail customers across India.

Annual Performance of FY26

Billionbrains Garage Ventures Limited’s revenue has increased from Rs. 4,061 crore in FY25 to Rs. 4,645 crore in FY26, which has grown by 14.38 percent. The net profit has also grown by 14.20 percent from Rs. 1,824 crore in FY25 to Rs. 2,083 crore in FY26.

Billionbrains Garage Ventures Limited’s revenue and net profit have grown at a CAGR of 60 percent and 66 percent, respectively, over the last three years. In terms of return ratios, the company’s ROCE and ROE stand at 37.3 percent and 28.8 percent, respectively. Billionbrains Garage Ventures Limited’s debt-to-equity ratio is 0.03x.

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