Jefferies sees strong upside for Groww's margin-trading book and revenue
Jefferies estimates Groww's margin-trading (MTF) book could grow to about ₹100 billion, boosting its revenue share to roughly 14% by FY29.
Jefferies' latest note highlights that Groww, the stock-broking platform under Billionbrains Garage Ventures Ltd, is well positioned to benefit from rapid growth in India's margin-trading facility (MTF) book, which stood at ₹1.5 trillion at the end of August. While India's MTF book has risen 34% annually over the past two years, it remains modest compared with developed markets. Groww's own MTF book has surged six-fold to ₹38 billion since FY25, with 1.1% of active cash-broking customers using the service in 1QFY27.
Jefferies forecasts the book could reach ₹100 billion by FY29, giving Groww a 4.8% market share and lifting MTF's revenue contribution to 14% from the current 5%. The brokerage now offers MTF on roughly 1,600 stocks and competes with peers like Zerodha and Angel One, which together hold a similar market slice. Jefferies trimmed Groww's FY27-29 EPS estimates by 2-3% due to a slowdown in options order growth, but raised the target price to ₹240, implying a 25% upside from the current price.
