The RBI’s curbs on bank funding to prop traders, effective July 26 and the CAS framework effective Aug’26, however, both are hurting less than the market feared. Prop traders have already found other funding, though at a higher cost. Volumes recovered by more than 20% in Sep’26, following the Aug’26 dip. Motilal Oswal believes Groww should be a key beneficiary as volumes recover. A sideways market may continue to affect volumes in the near term. However, Groww is building new revenue streams in broking and beyond, which reduces its dependence on derivatives.
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Motilal Oswal Report
Motilal Oswal has reiterated its ‘Buy’ rating on Billionbrains Garage Ventures Ltd. with a Rs 240 target, implying 25% upside from the reports current market prie of Rs 193.
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According to the brokerage, Groww is well placed to sustain strong earnings growth, supported by continued market-share gains, deeper monetisation of its large customer base, and increasing contribution from MTF, credit, and commodities.
The shift toward a more diversified revenue mix, coupled with operating leverage, should support a structurally higher earnings trajectory and reduce dependence on F&O-led revenue volatility.
Wealth and AMC provide additional medium-term optionality as the platform expands beyond core broking.
Broking business:
- Groww added 1,54,000 net active clients on the NSE in Sep’26 on a YoY basis, outpacing the industry’s net addition of 1,05,000 clients over the same period, taking transacting users to 23.5 million (+24% YoY) as of Sep’26.
- Stock ADTO market share rose 3.3pp YoY to 15.1%, while retail equity-derivative market share increased to 11% from 7.2%.
- F&O contribution to total income declined to 52% in Q1 FY27 from 56.4% in Q1 FY26, offset by increasing contributions from MTF and commodities.
- Moitlal Oswal expects broking revenue to grow at 22% CAGR over FY26-28E, led by higher customer engagement and product penetration.
Stocks:
- Retail stock ADTO market share increased to 15.1% (+3.3pp YoY), despite a sequential moderation following tighter risk controls. Stock ADTO grew 48% YoY, indicating sustained share gains.
- With 22 million transacting users and Rs 3.6 trillion of customer assets, MTF penetration remains the key lever to improve cash-segment realisations. The brokerage expects the stock-segment revenue to record 25% CAGR over FY26-28, supported by 10% order CAGR, active-user additions, and higher product attachment.
- Key monitorables: cash-equity market share, order growth, active users, and revenue per customer.
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