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Groww share price: Shares of Billionbrains Garage Ventures, the parent of Groww, jumped 2 per cent on Tuesday after Motilal Oswal initiated coverage on the stock with a buy rating. The brokerage set a target price of Rs 185, implying an upside of about 19 per cent from the previous close of Rs 155.53.

At around 1 pm, Groww shares were trading at Rs 156, up Rs 0.47 or 0.30 per cent for the day. The stock opened at Rs 157 and touched an intraday high of Rs 159.70 and a low of Rs 155.05. The company’s market capitalisation stood at about Rs 96,310 crore. The stock has a 52-week high of Rs 193.80 and a 52-week low of Rs 112.

Motilal Oswal said Groww has scaled rapidly to become the largest retail broking platform in India based on NSE active clients. Within four years of launch, the platform reached a market share of 26.8 per cent in November 2025. This was about 9 percentage points higher than the second-largest player.

The brokerage highlighted that Groww, which started as a zero-revenue mutual fund distributor, has evolved into a full-stack investment platform. It now offers equity and derivatives broking, commodities, margin trading facility, credit products, and wealth management. By the end of the first half of FY26, the company had 14.8 million active users across products.

Motilal Oswal said strong product adoption led to nearly three times growth in revenue between FY23 and FY25. It expects Groww’s revenue to double again over FY25 to FY28.

According to the report, Groww is building multiple growth levers to reduce its dependence on the volatile broking business. The expansion of margin trading, the fast-growing commodities segment, credit through loan against securities, and entry into wealth management are expected to improve earnings quality.

Motilal Oswal expects the contribution of broking revenue to decline to 67 per cent by FY28 from 85 per cent in FY25. This shift is seen as positive for long-term earnings stability.

The brokerage also pointed to Groww’s low customer acquisition cost. More than 80 per cent of customers are acquired organically. The fully in-house technology stack helps keep costs low and enables faster product launches. As revenues scale and fixed costs remain largely stable, EBITDA margins are expected to expand to 66 per cent by FY28 from 59 per cent in FY25.

Motilal Oswal said India’s capital markets remain structurally underpenetrated. Demat account penetration is around 14 per cent, compared with about 62 per cent in the US. Digital-first platforms such as Groww have gained significant market share over the years.

The NSE active clients’ share of discount brokers has risen to nearly 76–78 per cent from just 6–8 per cent in FY15. Retail participation has also increased sharply since FY20. While activity in derivatives moderated after regulatory changes, investors are gradually expanding into other asset classes such as mutual funds, commodities, and wealth products.

This trend, according to the brokerage, supports long-term growth for digital and low-cost platforms like Groww.

Motilal Oswal noted that a large part of Groww’s costs are fixed, with only about 9 to 10 per cent being variable. This supported an operating margin of 59 per cent in FY25. With most technology investments already made, cost-to-serve is expected to grow at a slower pace than revenue over the next few years.

The brokerage expects Groww’s revenue, EBITDA, and profit after tax to grow at a compounded annual rate of 25 per cent, 30 per cent, and 30 per cent, respectively, between FY25 and FY28.

It initiated coverage with a buy rating and a one-year target price of Rs 185, based on 28 times FY28 estimated earnings. Motilal Oswal added that Groww trades at a discount to global peers such as Robinhood. As the company’s revenue mix diversifies beyond broking into credit and wealth management, it expects this valuation gap to narrow over time.

Abhay Shukla is a Senior Sub-Editor at Zee Business, specializing in the analysis and reporting of stock markets, corporate news, personal finance, technology, and the auto sect