Billionbrains Garage Ventures , the parent company of Groww , is scheduled to announce its Q2FY27 results on Wednesday, October 14. The company is expected to report strong year-on-year growth in revenue and profitability, according to estimates from Motilal Oswal Financial Services ( MOFSL ). However, sequential revenue trends and margin pressures remain key monitorables for the brokerage.

MOFSL estimates revenue at Rs 1,434 crore for Q2FY27, up 40.8% from Rs 1,019 crore in the corresponding quarter last year. EBITDA is projected to rise 43.5% year-on-year to Rs 866 crore from Rs 603 crore, while adjusted net profit is estimated at Rs 651 crore, up 38% from Rs 471 crore.

Despite the expected year-on-year growth, the brokerage flagged potential pressure on sequential performance, particularly from the derivatives business.

“Derivative revenue to decline QoQ owing to CAS , while cash revenue to be largely flat and commodity to grow,” MOFSL said in its report.

The brokerage added that Groww's margin trading facility ( MTF ) book has reached a new peak, with the growth momentum expected to continue alongside an improvement in cash yields.

Margins, however, are likely to decline sequentially, driven by lower revenue and a slight increase in absolute costs, according to MOFSL. The financial performance of the wealth management business also remains a key monitorable as the company looks to offset the impact of pressure on broking revenue.

MOFSL has maintained a Buy rating on Billionbrains Garage Ventures, with a target price of Rs 240. The brokerage's stated current market price in the report was Rs 180, implying an upside of 33%.

Groww shares settled at Rs 192.61 apiece on the NSE in the market data provided, up 0.11% from the previous close of Rs 192.39. The stock traded in a range of Rs 190.79 to Rs 195.16 during the session. The stock has gained 24.24% so far this year, according to the data provided, outperforming the Nifty 50, which has declined nearly 14% over the same period.

At the latest closing price of Rs 192.61, MOFSL's target price of Rs 240 implies an upside of around 24.6%.

The brokerage has also cut its earnings per share estimates for FY27 and FY28 by 8% and 6.6%, respectively, highlighting the need to monitor the trajectory of broking revenue, margins and the contribution from wealth management.

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