A scalable platform, industry-leading margins and 35% EPS growth over two years — the bull case for India’s most talked-about retail investing app
If you have been watching India’s retail investing boom from the sidelines, Groww may be the most direct way to own it. The platform — listed as Billionbrains Garage Ventures — has just received an initiating Buy from BofA Securities with a price objective of Rs 235, implying upside of 21% from its current price of Rs 194.71.
The report frames Groww as nothing less than “India’s financial deepening proxy,” and the numbers behind that claim are worth sitting with.
India’s Retail Investing Runway Is Still Largely Untapped
The bull case for Groww stock begins with where India is in its financial deepening journey. BofA points to four structural drivers — a growing high and upper middle income household base, financialisation of household savings, low penetration of active investors and relatively higher returns in capital markets aided by favourable taxation. Put simply, most Indians who should be investing are not yet doing so.
Groww, with its mobile-first, frictionless onboarding, is positioned at exactly the point where that changes. The brokerage forecasts revenue growth of 30% CAGR over FY26–28, driven by 15% growth in active investors and 12% growth in ARPU.
Margins Are Already Best-in-Class — and Still Expanding
What separates Groww from most high-growth fintech stories is that the profitability is already there. The platform reported EBITDA and PAT margins of 61% and 47% respectively in FY25 — among the highest in its peer group. “Given a largely fixed-cost, scalable platform model, we see meaningful scope for further margin expansion,” the report says.
BofA expects EBITDA and PAT margins to expand further to 67% and 52% by FY28, powered by operating leverage and deepening product penetration across the existing user base. EPS growth is forecast at 35% CAGR over the next two years — a number that is genuinely difficult to find in large-cap India.
From Trading App to Wealth Platform
Groww is no longer just a stock trading app. The company is building out wealth management and AMC capabilities that could significantly expand its monetisation per user. BofA sees scope for re-rating as Groww “drives further margin expansion and establishes a credible presence in wealth management.”
The platform’s tech-based model, strong customer acquisition engine and long-term cross-sell optionality across mutual funds, insurance and lending are the three pillars the brokerage believes justify a premium valuation relative to traditional wealth and broking peers.
What Is It Worth
| Metric | Value |
|---|---|
| Current Market Price | Rs 194.71 |
| Price Objective | Rs 235 |
| Upside | 21% |
| Rating | BUY (Initiation) |
| Valuation | 39x FY28E P/E |
| EPS CAGR FY26–28E | 35% |
| EBITDA Margin FY28E | 67% |
| PAT Margin FY28E | 52% |
Watch These Risks
BofA flags two risks worth keeping in mind. First, regulatory uncertainty around futures and options — a segment that has driven significant retail trading volumes — remains a live concern, though the brokerage notes that “with multiple F&O regulatory changes already implemented, we see reduced incremental risk.”
Second, Groww’s revenues are sensitive to capital market cycles. A prolonged equity market downturn would dampen both new user acquisition and trading activity. There is also a six-month lock-in expiry coming in May 2026 that could create near-term price volatility.
For long-term investors, Groww stock offers something rare — a platform business at the intersection of two of India’s most powerful structural trends: the rise of the middle class and the financialisation of household savings. At 39x FY28 earnings the valuation is not cheap, but with 35% EPS growth, best-in-class margins and a product suite that is only getting wider, the premium looks earned. As BofA puts it, this is “India’s financial deepening proxy” — and that story has years left to run.