Billionbrains Garage Ventures, the parent company of popular trading platform Groww, has reported strong financial performance for Q3FY26, with operating revenue reaching ₹1,220 crores. The results demonstrate robust growth momentum across key metrics, driven by strategic expansion initiatives and increased user engagement.

Financial Performance Highlights

The company's Q3FY26 performance showcased consistent growth across multiple quarters. Operating revenue grew significantly on both year-on-year and sequential basis, while maintaining healthy profitability margins.

For the nine-month period ending Q3FY26, operating revenue remained flat year-on-year at ₹3,140 crores, indicating that the recent quarterly growth represents a positive inflection in the company's performance trajectory.

Operational Developments

The quarter witnessed significant operational expansion with the launch of the commodity trading segment, which contributed to increased operating expenses. Operating expenses rose 20% quarter-on-quarter to ₹500 crores, primarily attributed to:

• Launch costs for the new commodity segment
• Incremental expenses related to new user acquisitions
• Enhanced transaction activity support infrastructure

Despite higher operational costs, the company maintained its adjusted EBITDA growth at 24% year-on-year and 19% quarter-on-quarter. Notably, excluding the Fisdom business, the adjusted EBITDA margin expanded to 63.70%, highlighting the core platform's operational efficiency.

Analyst Outlook and Valuation

Motilal Oswal has revised its outlook for Billionbrains Garage Ventures, maintaining a BUY rating with an updated target price of ₹190. The revised valuation is based on 28x FY28E EPS, reflecting confidence in the company's earnings potential.

The brokerage has increased its FY27 and FY28 EPS estimates by 2% each, citing two key factors driving the upward revision:

• Strong expansion in the margin trading facility (MTF) book
• Better-than-expected performance from the newly launched commodities segment

The positive analyst sentiment reflects the company's successful diversification strategy and its ability to maintain profitability while investing in growth initiatives. The stable EBITDA margins despite expansion costs demonstrate operational discipline and effective cost management during the growth phase.

Billionbrains Garage Ventures has initiated the integration process of its wealth business operations following the successful acquisition of Fisdom, marking a significant milestone in the company's expansion strategy.

Strategic Integration Underway

The wealth business integration represents a crucial step in combining the operational capabilities and customer bases of both entities. The company is positioning itself to capitalize on synergies between its existing infrastructure and Fisdom's established platform.

Revenue Growth Projections

The integration strategy focuses on substantial revenue enhancement through the combined customer ecosystem:

Customer Base Expansion Strategy

The company anticipates significant growth opportunities by leveraging both its existing customer relationships and Fisdom's established client base. This dual-pronged approach aims to maximize the potential of the combined entity's market reach and service capabilities.

The integration process involves aligning operational systems, service offerings, and customer management processes to create a unified wealth management platform. This strategic move positions Billionbrains Garage Ventures to compete more effectively in the growing wealth management sector.

Market Positioning

The ambitious revenue target of ₹600.00 crore monthly increase demonstrates the company's confidence in the acquisition's potential and its ability to execute the integration successfully. The focus on existing customers alongside Fisdom's client base suggests a comprehensive approach to business growth and market expansion.