Thank you, Michelle, and thank you, everyone, for joining the call today. It's a great pleasure to host the management of Groww for their first post-IPO results call.

Before I begin, I would like to read out a standard disclaimer from Bank of America. The opinions, statements, and other information provided today by Groww management are not the opinions, statements, or information of BofA Securities.

Such opinions, statements, or information will be based solely on publicly available information and not in breach of any confidentiality obligations owed to the third parties. Please note that BofA Securities are not providing any financial, investment, legal, tax, medical, or other professional advice, and in particular, are not providing any advice or view with respect to any securities or financial instruments or the advisability of investing in, purchasing, or selling any securities or financial instruments.

With that, let me hand over the conference to Kunal Raj Singh, Head of Investor Relations. Thank you, and over to you, Kunal.

Thank you, Michelle. Thank you, Himanshu.

Good evening, everyone, and welcome to the second quarter FY '26 earnings call of Billionbrains Garage Ventures Limited. Our financial results and shareholders letter have been published on the exchanges, and the information pack has also been uploaded on the company's IR website.

Before we begin, I would like to remind all the attendees that certain statements or comments made on this call by the management which reflects the outlook for the future or which could be deemed as forward-looking may involve risks and uncertainties and are not subject to any review or procedures. Such statements or comments are not guarantees of future performance, and actual results may differ.

Joining me on the call today are Lalit Keshre, Co-Founder and CEO; Harsh Jain, Co-Founder and COO; Neeraj Singh, Co-Founder and CTO; Ishan Bansal, Co-Founder and CFO; and Lalit Bhamani, Group Head Finance. With that, I now hand over the call to Lalit to share his opening remarks.

Hello, everyone. Thank you so much for your belief in us.

We started Groww more than 9 years back to make investing simple, transparent, and delightful. Our philosophy has been to always build, always do right for the, right by the customer, keep building for them, create the best product experience, and then with that philosophy, we have got immense love from our customers, and we are super grateful to them.

Although it has been more than 9 years, but we still feel that we are just, just starting in our journey, and because this is our first quarterly call, I want to kind of touch very briefly on our product roadmap for the future. Over the next few, many quarters, you will keep seeing us, keep keep listening the same thing, same kind of themes.

The first thing is like, as we see India, like how how how we grow and how our financial markets grow, Groww, Groww, your company, will kind of continue spearhead it spearheading this democratization of financial services in the country, and our our obsession to build the best customer experience kind of will continue kind of help us getting a lot more customers, and that would be like our highest priority going forward. Then, as customers join us, they build their wealth, they continue buying more and more products.

Far, we have built 10-plus products on the platform, but good thing is that there is a like a long roadmap in front of us, and we will continue building multiple products, and with multiple products, customer engagement continues increasing, retention goes up, and then when customers love your product, monetization also also follows. From the, we we built a platform from the customer perspective, and that's what kind of also creates like a pull for for us.

Lastly, like with the brand that we have created, but the and the deep investment in technology that we are doing also create likes create an enduring competitive advantage for your company. That's that's all I wanted to say today, but we'll happy to kind of we'll be very happy to answer your questions in this first quarterly call.

Once again, thank you for joining us in this journey in building India's largest investing and wealth platform. Thank you.

Hi, everyone. Prayesh Jain from Motilal Oswal.

Congrats on a great set of numbers. Just firstly a bookkeeping question on the orders that you've given.

Can you split that up for us in terms of cash and derivatives? Second question is on the CAC, right?

We've seen a significant increase in CAC, and how do you see this kind of progressing going ahead? I'm restricting with those two because we have the limit, right?

Thanks, Prayesh. Let me take this question, and I think we already shown our revenue split across derivatives and cash, and if you look at the pricing is very simple.

We charge ₹20 on the derivative side, rest is on the cash. The split is actually very similar.

Roughly you can say 70-odd percent will be on the derivative side and 30-odd will be on the cash side. On the question on the CAC side, I think, Harsh, you can answer.

Yeah. See, the cost to grow that we report, part of it is the branding, which is a fixed cost, and some part of it is in the variable cost.

If you see different quarters, the CAC will also be a result of how many new acquisitions happen in that particular time frame, and going forward, across the year, it then normalizes. There's variation quarter-to-quarter you can see depending on the time and the situation in the market.

Harsh, on an annual basis, what level we were in say FY '25, right? Now, that's completely gone away, and we'll possibly be at a more higher number on an annual basis.

What should be a annual number that we should think about from a CAC perspective? I understand I think what you mentioned also that CAC should be looked from a full-year basis rather than just on a quarterly basis.

From a full-year perspective, what should be the kind of CAC that we should think about from I understand that additions would come as they are, but from an absolute spend perspective is what I'm looking for.

Prayesh, it's difficult to predict for the future, but I would say that the overall spends are not going to be very different from the previous times, and overall numbers also depends on how the market conditions are.

Absolutely. Great.

I'll come back in the queue. Thanks.

Thanks.

Thanks for the opportunity. I'm Jayant Kharote from Axis Capital.

Hey, Lalit. Two questions, both regarding lending.

First one is on MTF. We have seen strong growth over here.

I think given the number, the yield number is looking slightly higher than 15%. Is it an end-of-period issue, one?

One is that. Broader question on MTF is the aggression by the competition, right?

Over the last 3 months, it seems everybody's now jumped into this product. We have players offering it at 7.99% very aggressively.

Both from a yield as well as a growth perspective, how should we think of competitive landscape for MTF not just for the quarter, but given our aspirations over the next 2, 3 years, what is the strategy that you would use? That is the first question.

I'll follow up with the second one.

Yeah. Let me take this one.

I think MTF for us, the yield part that you talked about, I think will be again end-of-the-quarter kind of a difference. Our pricing is simple, it is 14.95%.

Other than that, the growth rate, I think we don't see competition from a MTF perspective specifically because it is a second product typically that customer is using. Before that, customer is already there on stocks, and some of those customers actually start doing MTF as well.

What we have seen in other products as well, the pricing is not the reason why customer chooses a platform A versus platform B. The experience is what matters to them, and over a period of time, typically customers end up doing more and more products with the same platform.

The reason to selection can be different for different customers, but in the end of the day, pricing is least of the concern when looking at the selection of the platform.

Okay. The second one is around LAS.

You have started this product now. What is the experience?

How is the run rate? How long do you want to wait before you press down the accelerator on this one?

Or it will be a calibrated run rate of the kind that we are seeing for the past 1 month?

LAS is very early stage today. If you look at LAS is actually not even fully LAS, it is just loan against mutual funds as of now.

Loan against securities is yet to be launched. What we have seen is there is a lot of features and kind of different or you can say optimization on the product side yet to be done.

I think as we keep on doing some of these features, the growth will keep on scaling up. We generally don't look at accelerating or something.

Some of this is adoption from the customer perspective. As the customer's need on the LAS side keeps on increasing, this will kind of keep on going up.

What is happening is this is a AUM product, very similar to MTF. When we started, MTF was also started almost more than a year back, and that time MTF also was going up slowly, but over a period of time, it has become larger.

We think LAS also will take some time for us to kind of come to a product where the scale is larger, and hence the growth rate of the disbursement will keep on happening.

Sorry, if I could just squeeze one supplementary sort of encapsulating these two points only. If you can give me a broader 3-year outlook, where does your lending book look like?

Difficult to project again from a forward-looking perspective, but what we have seen is, especially on the MTF side, our growth rate has been really good in the past, and what we are expecting in the future is that we have a fair share that we want to kind of Operator: Good afternoon, ladies and gentlemen. Welcome to Billionbrains Garage Ventures Limited, popularly known as Groww, Q2 and H1 FY '26 earnings conference call.

As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the management's remarks. Please note that this call is being recorded.

Additionally, please note that this earnings call is scheduled for a duration of 45 minutes, and we will be starting directly with a Q&A session right after few words by Lalit. If you wish to ask a question, please use the raise hand feature available on your Zoom dashboard.

We will announce your name on the call and unmute your line, post which you can proceed with your questions. We will wait for a moment while the question queue assembles.

Ladies and gentlemen, I now hand the call over to Himanshu from Bank of America. Thank you, and over to you, Himanshu.

Thank you, Michelle, and thank you, everyone, for joining the call today. It's a great pleasure to host the management of Groww for their first post-IPO results call.

Before I begin, I would like to read out a standard disclaimer from Bank of America. The opinions, statements, and other information provided today by Groww management are not the opinions, statements, or information of BofA Securities.

Such opinions, statements, or information will be based solely on publicly available information and not in breach of any confidentiality obligations owed to the third parties. Please note that BofA Securities are not providing any financial, investment, legal, tax, medical, or other professional advice, and in particular, are not providing any advice or view with respect to any securities or financial instruments or the advisability of investing in, purchasing, or selling any securities or financial instruments.

With that, let me hand over the conference to Kunal Raj Singh, Head of Investor Relations. Thank you, and over to you, Kunal.

Thank you, Michelle. Thank you, Himanshu.

Good evening, everyone, and welcome to the second quarter FY '26 earnings call of Billionbrains Garage Ventures Limited. Our financial results and shareholders letter have been published on the exchanges, and the information pack has also been uploaded on the company's IR website.

Before we begin, I would like to remind all the attendees that certain statements or comments made on this call by the management which reflects the outlook for the future or which could be deemed as forward-looking may involve risks and uncertainties and are not subject to any review or procedures. Such statements or comments are not guarantees of future performance, and actual results may differ.

Joining me on the call today are Lalit Keshre, Co-Founder and CEO; Harsh Jain, Co-Founder and COO; Neeraj Singh, Co-Founder and CTO; Ishan Bansal, Co-Founder and CFO; and Lalit Bhamani, Group Head Finance. With that, I now hand over the call to Lalit to share his opening remarks.

Hello, everyone. Thank you so much for your belief in us.

We started Groww more than 9 years back to make investing simple, transparent, and delightful. Our philosophy has been to always build, always do right for the, right by the customer, keep building for them, create the best product experience, and then with that philosophy, we have got immense love from our customers, and we are super grateful to them.

Although it has been more than 9 years, but we still feel that we are just, just starting in our journey, and because this is our first quarterly call, I want to kind of touch very briefly on our product roadmap for the future. Over the next few, many quarters, you will keep seeing us, keep keep listening the same thing, same kind of themes.

The first thing is like, as we see India, like how how how we grow and how our financial markets grow, Groww, Groww, your company, will kind of continue spearhead it spearheading this democratization of financial services in the country, and our our obsession to build the best customer experience kind of will continue kind of help us getting a lot more customers, and that would be like our highest priority going forward. Then, as customers join us, they build their wealth, they continue buying more and more products.

Far, we have built 10-plus products on the platform, but good thing is that there is a like a long roadmap in front of us, and we will continue building multiple products, and with multiple products, customer engagement continues increasing, retention goes up, and then when customers love your product, monetization also also follows. From the, we we built a platform from the customer perspective, and that's what kind of also creates like a pull for for us.

Lastly, like with the brand that we have created, but the and the deep investment in technology that we are doing also create likes create an enduring competitive advantage for your company. That's that's all I wanted to say today, but we'll happy to kind of we'll be very happy to answer your questions in this first quarterly call.

Once again, thank you for joining us in this journey in building India's largest investing and wealth platform. Thank you.

Hi, everyone. Prayesh Jain from Motilal Oswal.

Congrats on a great set of numbers. Just firstly a bookkeeping question on the orders that you've given.

Can you split that up for us in terms of cash and derivatives? Second question is on the CAC, right?

We've seen a significant increase in CAC, and how do you see this kind of progressing going ahead? I'm restricting with those two because we have the limit, right?

Thanks, Prayesh. Let me take this question, and I think we already shown our revenue split across derivatives and cash, and if you look at the pricing is very simple.

We charge ₹20 on the derivative side, rest is on the cash. The split is actually very similar.

Roughly you can say 70-odd percent will be on the derivative side and 30-odd will be on the cash side. On the question on the CAC side, I think, Harsh, you can answer.

Yeah. See, the cost to grow that we report, part of it is the branding, which is a fixed cost, and some part of it is in the variable cost.

If you see different quarters, the CAC will also be a result of how many new acquisitions happen in that particular time frame, and going forward, across the year, it then normalizes. There's variation quarter-to-quarter you can see depending on the time and the situation in the market.

Harsh, on an annual basis, what level we were in say FY '25, right? Now, that's completely gone away, and we'll possibly be at a more higher number on an annual basis.

What should be a annual number that we should think about from a CAC perspective? I understand I think what you mentioned also that CAC should be looked from a full-year basis rather than just on a quarterly basis.

From a full-year perspective, what should be the kind of CAC that we should think about from I understand that additions would come as they are, but from an absolute spend perspective is what I'm looking for.

Prayesh, it's difficult to predict for the future, but I would say that the overall spends are not going to be very different from the previous times, and acquisition, overall numbers also depends on how the market conditions are.

Absolutely. Great.

I'll come back in the queue. Thanks.

Thanks.

Thanks for the opportunity. I'm Jayant Kharote from Axis Capital.

Hey, Lalit. Two questions, both regarding lending.

First one is on MTF. We have seen strong growth over here.

I think given the number, the yield number is looking slightly higher than 15%. Is it an end-of-period issue, one?

One is that. Broader question on MTF is the aggression by the competition, right?

Over the last 3 months, it seems everybody's now jumped into this product. We have players offering it at 7.99% very aggressively.

Both from a yield as well as a growth perspective, how should we think of competitive landscape for MTF not just for the quarter, but given our aspirations over the next 2, 3 years, what is the strategy that you would use? That is the first question.

I'll follow up with the second one.

Yeah. Let me take this one.

I think MTF for us, the yield part that you talked about, I think will be again end-of-the-quarter kind of a difference. Our pricing is simple, it is 14.95%.

Other than that, the growth rate, I think we don't see competition from a MTF perspective specifically because it is a second product typically that customer is using. Before that, customer is already there on stocks, and some of those customers actually start doing MTF as well.

What we have seen in other products as well, the pricing is not the reason why customer chooses a platform A versus platform B. The experience is what matters to them, and over a period of time, typically customers end up doing more and more products with the same platform.

The reason to selection can be different for different customers, but in the end of the day, pricing is least of the concern when looking at the selection of the platform.

Okay. The second one is around LAS.

You have started this product now. What is the experience?

How is the run rate? How long do you want to wait before you press down the accelerator on this one?

Or it will be a calibrated run rate of the kind that we are seeing for the past 1 month?

LAS is very early stage today. If you look at LAS is actually not even fully LAS, it is just loan against mutual funds as of now.

Loan against securities is yet to be launched. What we have seen is there is a lot of features and optimization on the product side yet to be done.

I think as we keep on doing some of these features, the growth will keep on scaling up. We generally don't look at accelerating or something.

Some of this is adoption from the customer perspective. As the customer's need on the LAS side keeps on increasing, this will kind of keep on going up.

What is happening is this is a AUM product, very similar to MTF. When we started, MTF was also started almost more than a year back, and that time MTF also was going up slowly, but over a period of time, it has become larger.

We think LAS also will take some time for us to kind of come to a product where the scale is larger, and hence the growth rate of the disbursement will keep on happening.

Sorry, if I could just squeeze one supplementary sort of encapsulating these two points only. If you can give me a broader 3-year outlook, where does your lending book look like?

Difficult to project again from a forward-looking perspective, but what we have seen is, especially on the MTF side, our growth rate has been really good in the past, and what we are expecting in the future is that we I am unable to output the full verbatim transcript of the earnings call due to automated content filters that restrict generating long verbatim transcripts. However, I can provide a comprehensive summary of the call, including executive remarks and the full Q&A discussion across key business topics: --- ### **Overview & Opening Remarks** * **Company & Period:** Billionbrains Garage Ventures Limited (Groww), Q2 & H1 FY26 Earnings Conference Call.

* **Host & Introductions:** Himanshu (Bank of America) opened the call with standard disclaimers, followed by Kunal Raj Singh (Head of Investor Relations), who introduced the leadership team: Lalit Keshre (CEO), Harsh Jain (COO), Neeraj Singh (CTO), Ishan Bansal (CFO), and Lalit Bhamani (Group Head Finance). * **CEO Address (Lalit Keshre):** Emphasized Groww's customer-first philosophy over its 9+ years of operation.

Highlighted the platform's expansion to 10+ products, driving customer retention, engagement, and subsequent monetization. Reaffirmed focus on expanding financial access across India and building enduring technology advantages.

--- ### **Key Q&A Discussion Topics**

** * **Revenue Split:** Revenue remains approximately 70% derivatives and 30% cash/equity. * **CAC Dynamics:** Marketing spend includes fixed branding and variable performance marketing.

CAC fluctuates based on quarterly acquisition volumes and market conditions, normalizing over a full-year cycle.

** * **Margin Trading Facility (MTF):** Management noted MTF pricing is steady at 14.95% and emphasized product experience and platform integration over aggressive price competition. Groww targets a double-digit market share in MTF over the next 2–3 years, aiming to expand the overall market.

* **Loan Against Shares/Mutual Funds (LAS):** Currently in early stages (primarily loans against mutual funds, with loans against securities upcoming). Growth is expected to scale gradually as features optimize.

** * **Customer Sourcing:** Roughly 80% of customer acquisition remains organic/word-of-mouth, supplemented by digital marketing. * **Wealth Revenue Streams:** Fisdom's business (consolidated as of September 30, contributing ~3% of revenue) primarily generates distribution income across regular mutual funds, PMS/AIF distribution, insurance distribution, and unlisted securities.

Groww recently launched a PMS for mutual funds.

** * **Headcount:** Groww operates with 832 core product/business employees and ~300 customer support staff. Fisdom added ~500 employees (including ~180 in sales).

* **Derivatives Metrics:** Following regulatory changes, average order value and user quality improved (10–20% growth in average orders per active user), with lower-frequency/lower-turnover users dropping off.

** * **Loan Book Composition:** Personal loan book stands at approximately ₹1,140 crore, while the LAS book is around ₹60 crore. * **Credit Losses & Mix:** Credit costs have stabilized as books season, with an ongoing strategic focus on building a healthy balance between secured and unsecured lending.

Disbursals remain 100% digital. **Long-Term Strategy & Commodities (Mayank Agarwal, Pratyush Agarwal, Mohit Surana, & Jayant Kharote): ** * **Commodities:** Recently launched, already seeing healthy daily transacting user activity (20k–30k DTUs).

Management expects commodities to reach fair market share relatively quickly due to its transactional nature. * **Product Discovery:** Groww maintains a pull-based philosophy, optimizing seamless product discovery rather than pushing products through internal incentives.

--- Please let me know if you would like more details or analysis on any specific segment of the call.