Groww’s next growth engine: Monetizing customers beyond equity derivatives

Billionbrains Garage Ventures Ltd. (NSE: GROWW), the parent of Indian investment platform Groww, is expected to accelerate revenue growth as it looks to extract more value from its growing customer base beyond its core equity-derivatives franchise.

Visible Alpha consensus shows revenue from operations is expected to rise 35% year-on-year to ₹62.7 billion in FY2027, while active users increase 7% to 17.8 million. Revenue is then projected to reach ₹106.3 billion by FY2030, implying a compound annual growth rate of about 23% from FY2026, compared with roughly 10% annual growth in active users. The gap suggests that higher monetization, rather than customer additions alone, will increasingly drive growth.

Two newer businesses stand out: Margin Trading Facility (MTF) and commodities.

Groww launched MTF in April 2024, allowing customers to buy stocks using borrowed funds and pay interest on the financed portion. Adoption remains relatively early but is scaling rapidly. Visible Alpha consensus expects the MTF book to rise from ₹28.1 billion in FY2026 to ₹52.4 billion in FY2027 and ₹125.4 billion by FY2030. Revenue is forecast to more than double to ₹6 billion in FY2027 and reach ₹16.2 billion by FY2030, lifting its contribution to group revenue from about 6% to 15%.

The expansion comes as India's equity-derivatives market faces tighter regulation. The Securities and Exchange Board of India has introduced measures including fewer weekly index expiries, larger minimum contract sizes and higher expiry-day risk requirements, following evidence of substantial losses among individual derivatives traders.

Against that backdrop, Groww is also building out commodities. The platform began rolling out commodity derivatives in September 2025 and subsequently added a broader range of NSE and MCX contracts, including gold, silver, crude oil, natural gas and base metals. Analysts expect active commodity users to rise from 391,000 in FY2026 to 520,000 in FY2027, while commodity revenue jumps 151% to ₹2.9 billion.

The numbers point to diversification rather than a retreat from derivatives. Equity-derivatives revenue is still expected to rise from ₹26.6 billion in FY2026 to ₹45.3 billion by FY2030. But its share of group revenue is forecast to fall from 57% to 43% as MTF, commodities and other businesses grow faster.

For Groww, the shift is therefore less about replacing its trading engine and more about broadening it.

This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.