New Delhi: Newly listed online investment platform Groww is sharpening its focus on asset management and wealth services even as its core broking business continues to scale, with management signalling sustained operating leverage and selective capital deployment.
During its Q3 FY26 earnings call, Groww said its asset management company (AMC) remains a small but high-potential business, with the recent strategic partnership with State Street expected to accelerate capability-building, credibility and product expansion.
The company indicated that proceeds from the transaction would primarily be used to scale the AMC organically, while also keeping room for inorganic opportunities, subject to regulatory approvals.
On the wealth management front, Groww said integration of the Fisdom acquisition is still at an early stage, with revenues currently immaterial to the group’s overall P&L. Management, however, sees significant long-term potential in offering PMS, AIFs, regular mutual funds, insurance and advisory services to its growing base of affluent customers, aided by near-zero customer acquisition costs from its existing platform.
The company also highlighted strong operating leverage, noting that nearly 90% of its cost base is fixed, with variable costs limited to around 10%.
This has supported margin expansion as revenues scale, even as Groww remains cautious on aggressive marketing spends amid muted industry-wide customer acquisition trends.
Groww ruled out dividends in the near term, citing its early post-listing phase and ongoing investments in growth businesses. Management reiterated that profitability remains an outcome of growth rather than a target, with focus firmly on expanding product depth, market share and customer engagement across investment categories.