Daybreak Did Groww's profits really triple before its IPO?
Nov 4, 2025
Groww is making waves with a potential IPO, claiming profits have tripled and revenues soared. However, a closer look reveals much of this growth stems from one-time accounting moves. While competitors struggle under new SEBI rules, Groww is shifting focus to lending to drive future growth. Yet, with declining user numbers and losses in other areas, risks loom over their ambitious market narrative. The race against rivals intensifies in the lending space, as Groww aims for a bold valuation amidst mixed fundamentals.
AI Snips
Chapters
Transcript
Episode notes
Reported Profits Inflated By One-Offs
- Groww reports ₹1,900 crore profit for FY25 but much of the jump stems from one-off accounting reversals and incentives being cancelled.
- The headline tripling of profits masks accounting quirks from the domicile shift and incentive reversals that distort comparability.
Domicile Move Skewed Yearly Comparisons
- A domicile shift from the US to India triggered a ₹1,500 crore tax bill and large incentive payouts that depressed FY24 results.
- Reversals of those incentives in FY25 materially improved reported profits, creating volatile year-on-year comparisons.
Quarterly Gain Hides Underlying Decline
- Groww's June quarter profit rise relied on reversing a long-term incentive, masking what would have been a 25% profit decline.
- Broader revenue weakness suggests FY26 may reveal the true impact of SEBI's F&O tightening.