Groww Q3 Profit Dips 28% YoY Despite Revenue Surge
Overview
Brokerage platform Groww reported a 27.8% year-over-year drop in consolidated profit after tax to INR 546.9 Cr for Q3 FY26. This decline stems from the reversal of a one-time long-term incentive plan from the prior year. However, profit rose 16% sequentially, and revenue from operations surged 24.8% YoY to INR 1,216.1 Cr.
Groww Reports Q3 FY26 Results: Profit Falls 28% YoY
Brokerage platform Groww announced its third-quarter fiscal year 2026 financial results, revealing a 27.8% year-over-year decline in consolidated profit after tax. The company posted a profit of INR 546.9 crore for the quarter ending December 2025, a notable decrease from INR 757.1 crore in the same period last year.
Q3 Financial Performance Breakdown
This year-over-year profit contraction was primarily attributed to a one-time accounting adjustment. In the previous year, Groww had recognized a significant long-term incentive plan for its management, amounting to INR 106.2 crore and INR 318.5 crore for specific periods. This incentive plan was subsequently cancelled, leading to a reversal of INR 106.2 crore and INR 424.7 crore in the nine-month and three-month periods ending December 2024, respectively. This reversal skewed the year-ago comparison, making the current quarter's profit appear lower.
However, Groww demonstrated sequential strength. Profit after tax climbed 16% quarter-over-quarter, rising from INR 471.3 crore in the preceding quarter. This sequential growth signals underlying operational momentum.
Revenue Growth Outpaces Profit Decline
Concurrently, Groww's revenue from operations showed robust expansion. For Q3 FY26, revenue stood at INR 1,216.1 crore, a substantial 24.8% increase from INR 974.5 crore in the year-ago period. On a sequential basis, revenue grew by 19.4% from INR 1,018.7 crore, indicating strong customer acquisition and transaction volumes on its platform.
The company's ability to grow revenue significantly while navigating the one-time profit adjustment highlights its core business expansion. Investors will likely parse these results to assess the sustainability of revenue growth against the backdrop of profit volatility driven by accounting factors.
