Stories
Groww Eyes 25-30% Long-Term Growth Despite SEBI Regulations Impacting Derivatives
- •Groww maintains its long-term annual revenue growth target of 25 to 30 percent despite a temporary slowdown in derivatives.
- •CFO Ishan Bansal noted that equity derivatives revenue dropped about 14 percent due to new SEBI regulations effective August 1.
- •The platform saw strong performance in other business segments and robust IPO activity with over 30 public issues during the quarter.
- •September trading activity showed improvement over August, and market volatility remains a key driver for trading volume and business success.
Key Questions Answered
The temporary slowdown in Groww's equity derivatives revenue was caused by new cash-equivalent regulations introduced by the Securities and Exchange Board of India (SEBI), which came into effect on August 1. This regulatory impact led to a roughly 14% drop in equity derivatives revenue for the quarter.
Despite the temporary disruption in its derivatives business, Groww expects to maintain its long-term annual revenue growth target of 25% to 30% over a four to five-year time horizon.
A surge of more than 30 public issues during the July-September 2026 quarter contributed to a sharp rise in other operating income for Groww, more than doubling it sequentially. The company expects this IPO-related income to remain healthy in the following quarter as several offerings are lined up.
