Summary
Nuvama approximated that a 5% fall in F&O (futures and alternatives) orders would minimize Groww’s income and after-tax earnings by 2.5% and 4.4%, respectively, compared to 2.3% and 5.2% for Angel One. The effect on profits before devaluation and tax (Ebdat) margins would be 122 basis points for Groww, lower than the 135 basis points approximated for Angel One, it stated.
Online financial investment platform Groww’s incomes are most likely to be less afflicted than its peers such as Angel One if the anticipated curbs on retail derivatives trading entered into impact, according to a note by Nuvama Institutional Equities the other day.
Nuvama approximated that a 5%fall in F&O (futures and choices)orders would decrease Groww’s income and after-tax revenue by 2.5% and 4.4%, respectively, compared to 2.3% and 5.2% for Angel One. The effect on revenues before devaluation and tax (Ebdat) margins would be 122 basis points for Groww, lower than the 135 basis points approximated for Angel One, it stated.
The note stated Groww’s reliance on derivatives trading has actually decreased, with F&O consisting of 62% of overall broking profits in the June quarter, below 90.2% in FY24. Broking stays the business’s pillar, representing almost 85% of overall incomes in FY25. For AngelOne, this decrease was 989 basis points, from 84.4% to 74.5% of gross broking earnings throughout the very same duration.
Markets regulator Securities and Exchange Board of India (Sebi) is suppressing F&O trading to secure retail financiers who are sustaining heavy losses, and to increase total market stability.
The Bengaluru-based platform, which surpassed Zerodha and Angel One to end up being India’s biggest retail broker, had a 26.3% share of active customers since September 2025. Its active customer base grew at a compound yearly rate of 101.7% in between FY21 and FY25, substantially greater than the market’s 27%.
Nuvama included that while Groww has actually gone into brand-new sections such as margin trading, loans versus securities, individual loans, and wealth management, these stay at an early phase of scale.
Groww submitted its upgraded draft red herring prospectus with the Sebi for a Rs 6,000-7,000 crore going public (IPO) last month. The company is targeting a November listing at a $7-9 billion appraisal, ET had actually reported previously.