Thank you, Michelle. Good afternoon, everyone, and welcome to the call.

Our results and shareholder letters have been published on the exchanges as well as uploaded on the company's IR website. Before we begin the call, I would like to remind all the attendees that some statements or comments made on the call today by the management can be deemed as forward-looking and hence may involve certain risks, and are not subject to any review.

Such statements or comments are not guarantee of future performance, and the actual results may differ. With that, I would like to invite Lalit for the opening remarks.

Hello. Thanks, Shiv.

Hello, everyone. Good afternoon and welcome to our Q1 FY27 earnings call.

This is our fourth call after we got listed. This past May, we reached an important milestone in our company.

We completed 10 years of our journey. When we started Groww, we had a very simple and very, very big goal to democratize wealth in India.

As I mentioned in my last call, that every quarter, you will hear the same thing again and again, and and we'll be we'll continue following the same purpose for many more years. Our strategy has also been consistent throughout last 10 years, and that is to improve the user experience and keep launching more and more products that our customers want.

This customer-focused strategy has also led to the create to creation of a platform that is loved by like millions of millions of customers. That strategy is also taken from starting from mutual funds to stocks, derivatives, MTF, and many more products, the most recent one being commodities, where we achieved like more than 28% market share, retail market share in in terms of notional ADTO.

The first 10 years of our journey was more about giving access to wealth, to investing to millions of Indians, and managing their wealth. The the next one will move beyond just being an execution platform or a very, very good user experience platform to actually becoming like a true wealth management company.

As part of that, we over last few quarters, we have been kind of building multiple products, including MF Prime and W, where we help customers on multiple fronts in building wealth. A lot of these products are basically very research-backed, where we help customers in figuring out the best investments, rebalancing, tax considerations, and many more things.

That was that is the kind of big focus area for us. Secondly, we continue doing multi-product on the platform.

We continue launching more products, the the last one being bonds, which is scaling really, really well. This quarter also, you will see another new product coming.

On credit, as as we have spoken, like it's a it's a good compounding business for us. The focus there over over last few months, or last few quarters, like LAS is showing good growth.

Now it constitutes 34% in our disbursement, and very relevant for our our investors. On AMC, last time we had kind of announced about the SSG, State Street Global, partnership investment.

One development there is that now we have got SEBI and CCI approval as well. Lastly, on AI, like we we remain focused on it on various fronts, in both serving customer customer experience, and also on how we build products.

We believe that it is it will fundamentally reshape the investing experience, as well as, how things are built, and we kind of continue kind of focusing on that. We are leveraging it across multiple places.

So 10 years in, we believe we are still early in the journey, and we are glad to have you with us in it. With that, let's open to the Q&A.

Thank you.

Hi. This is Dipanjan here from Citigroup Global Markets.

Few questions from my side. First, if I look at your employee expense number, it seems that you have been onboarding some employees to the overall organization, maybe because of the new product segments or post-integration with Fisdom.

Just wanted to get some color, if I were to take a two to three-year view, how should one think of the employee additions given your aspiration to transition into more of a digital-savvy wealth sort of a company out there? That's the first question.

The second question, if I look at your MTF growth, obviously, the momentum has been sustained. Having said that, I think a large part of the growth has been driven by increase in ticket size.

Two subparts to this question: one is in terms of customer acceptance of the product, how much more acceptance rate do you expect? Secondly, is the increase in MTF actually yield-accretive for the cash business given the ceiling in terms of brokerage can be relatively higher?

Third question is on the active derivative customers. If I look at sequentially and look at the active derivative customer data, there seems to have been a little bit of softness in that number.

Just wanted to get your sense of the underlying customer behavior in that segment. Those were the three questions.

One data-keeping question: was there any ESOP expense during the quarter?

Let me take, I think, one at a time. I actually note down this time.

The first question on the employee side, I think we are onboarding employees, but at the same time, if you look at the expense increase in employees, it's largely pertaining to the appraisal cycle that happens during April. The increase is actually primarily coming from that.

It is not because of there is a significant increase in head count. In longer run also, we don't expect there will be a crazy increase in head count.

We want to build wealth also in a slightly different way where it is more tech-driven, more AI-driven compared to a traditional wealth that is done with more RM focus. We will definitely have RMs also along with the AI and the technology.

In longer run also, we don't expect the org count to significantly increase in wealth as well as in Groww. On the second part of your question on MTF, I think there is still lot of adoption pending.

There are a lot of nuance kind of problems that we are solving, which mostly, I think, on the infra side internally. I think as we kind of do better on some of those things, we expect that the penetration can increase, as well as the ticket size can also expand further.

MTF, I think, is growing slightly better than what we were expecting, partially due to the markets, and we think we can keep on continuing the growth on MTF the way it has been happening from last year or two. On the third part of your question was on derivatives.

I think last quarter was relatively a exception, we should not read too much into the last quarter, actually. As a trend, what we are seeing is it is relatively stabilizing.

Even last quarter, when I say last quarter, I'm talking about Q4 of FY26. Q1 of FY27 also has some bit of kind of uniqueness because of war.

Large part of that war also started in Q4 FY26, there is some, you can say, exception that is built into Q4 FY26. If you compare it with Q3, you will see that there is a improvement there, but obviously, over time, it'll stabilize.

On the last question, I think on the ESOP side, definitely, I think roughly 10% of our employee cost is actually coming from ESOPs.

Sorry, Ishan. Just one small clarification.

That is this 10% number is true for this 1Q quarter? Just to be clear?

Yes.

Okay. Sorry, one part of the question that maybe got missed was on the cash yields due to the ticket size accretion

in MTF? Cash yields are improving.

We've been seeing that on a year-on-year basis, I think cash yields has improved by roughly 5%, and we expect that to kind of increasing every quarter a percentage or two as the penetration of MTF keep on increasing.

Got it. Thank you, Ishan and the team, and all the best.

Hi. Thanks a lot for the opportunity.

I'm Supratim from Jefferies. I had three questions, starting with the first one.

You have secured the license to provide US stock options through the GIFT City route. Just wanted to understand that when are you planning to launch that service?

Would it be limited to only US stocks, or you are looking at expanding it to other markets as well? If you could give us some color on how would the pricing of this service be compared to domestic markets?

That's the first bit. Secondly, there has been an article today indicating that margin requirements on expiry day could go up.

Now, in November '24, additional margin requirement was introduced on stock options. Wanted to understand what impact did you see from that in an implementation, if any?

Lastly, you have launched Groww Prime, W by Groww has been there for some time now. If you could give us some color with respect to client addition, traction that you are seeing of these two services, that would be very helpful.

Thank you.

On US stocks, I think we got the licenses. We, I think, are in kind of mode of testing the product.

I think we will launch it soon, but generally, it's very difficult to put a exact time when it'll come for the customers. We'll start with US stocks, and obviously, if it works, we'll figure out if there is a demand for other geographies, accordingly we'll kind of take it forward from there.

It's a kind of a learning curve with the new product, and we'll kind of figure it out once we have more data. Once we launch it, we'll have more data, and we accordingly kind of proceed further.

On F&O piece, I think honestly, this is news for us also because we are not hearing anything from SEBI perspective that they are thinking something like that, but news is news, we can't comment on news, actually. The third thing you talked about, sorry, I forgot the third part.

Prime and wealth customer number.

Yeah. Lalit, you want to take it?

The wealth piece.

Yeah. It's a bit early, Supratim.

I think if you look at our history, our process is build product 10x, and same thing applies for US stocks also, right? Build customer experience that is 10x better than whatever exists, and go slow initially, and once you find the right direction, then run very fast.

I think on all these three products, be it US stocks, Prime, and W, I think this quarter is a bit too early to kind of comment about them, but maybe in coming quarters, we'll talk more about them.

Absolutely. Just one last follow-up, see on the F&O bit, I do understand it's too early to comment on news.

Given there was a similar kind of increase in November '24, did you see any change in behavior because of that additional 2% ELM margin requirement?

Not exactly. I think because it came with a lot of other changes as well.

It's very difficult to attribute basically the change to a particular regulation because there were five things that happened parallelly.

Makes sense. Thank you.

Hi. Good afternoon, everyone.

This is Prayesh Jain from Motilal Oswal. Just extending the previous question on F&O, we've seen some slow down in terms of your premium turnover on a daily basis, if we look at the first few days of July data.

I would presume that is to a certain extent the impact of the BUDG regulations, or how are you seeing this kind of trend impacting your Q2 performance? Just an extension to that, even if we back-calculate the cash segment orders, assuming that the ₹20 per order on derivatives and commodities, then we are seeing a 9% decline in number of orders for the cash segment.

Is that roughly right? I think

coming to the first one, there is a I think dip in F&O in the early July like you said. I think it was there in the end part of the June as well.

I think it was more correlated with, again, war than anything else is what our estimation is, because we saw that change. Once again, there was a news on Iran war, and the volatility again came back, and then suddenly volume also went up.

We are seeing higher correlation with volatility than actually any regulations as of now. Again, I think our understanding is this regulation doesn't impact retail business anyways, and overall also, from a market perspective, the impact looks relatively smaller compared to what everyone was else estimating.

Definitely, there is some impact for industry, but not for us. Sorry, the second part on the orders on cash side, I think you're right.

I think this is primarily you can think of gold and silver has a significant delta in this because if you look at stock orders includes ETFs as well. ETF was a significant volume in both Q3 and Q4, and we are seeing that that trend has kind of now slowing down relatively because both these silver and gold are not performing, and hence there is a drop in number of orders.

Okay.

Another question was on your broader strategy, right, Lalit and probably Ishan, you all can pitch in on here. Earlier when we started, we started with one product which was mutual funds, then we added cash delivery, cash intraday, derivatives.

It was one product that we were adding at a time, right? Now today as we are working, we're building commodities, we're building wealth, we're building the AMC, we're building the new product that you've mentioned, we're looking into getting into US stocks.

How are you kind of ensuring that the cost and the team tech bandwidth is kind of well-controlled, and how confident you are with respect to execution of each of these things, particularly wealth management is something that you've spoken a lot about, what are your aspirations there in terms of anything that you can mention with respect to AUM or size that can be seen in the next two or three years?

I'll take this, Prayesh. Overall strategy wise, see first thing I want to clarify that while we talk about all so many products, all products are at a different life stage.

Commodities, for example, is now almost adoption is more or less fierce adoption, if I can say that, and so on. It started not now, but maybe two years back.

When we were private, then we are not talking about products every quarter, right? We are always building multiple products, but every product, it is a different kind of life stage, right?

Number two is that on the people and cost side and everything, see what we have realized is one our core business, our established businesses, they get more and more efficient in terms of building. The team sizes and everything, they get more efficient.

Then all the new products, if you see, so many new products that we have launched, effectively, it's all coming from the existing team. We create new pod structure and so on.

It works more like a multithreaded kind of org if you have read about our pod structure philosophy, there are multiple parallel engines that keep running with very common simple single top-level strategy. That is on second.

Then as I said, all products are at a different kind of point. Commodities is very advanced.

US stocks is just starting, hopefully, we'll be launching in few months or we can't promise right now, but depending on the experience, how experience kind of comes. W is again we are kind of refining the experience, although there is some traction there and so on.

On your last question on the projections and stuff, I think, again, as I said in my previous answer, it's kind of a bit early to kind of give those. We are very confident.

We are very happy with whatever we are seeing right now on the progress.

No, that's helpful. Last question from my side.

When we think about say over the next couple of years, what could be possibly the important point in terms of cost if you want to highlight, or in terms of revenue line items that you see as the risk to your earnings profile in the next couple of years?

Ishan?

If there is anything, we will let you know. I think as of now, there's nothing top of the mind.

Sure. Thank you and wish you all the best.

Hi. Thank you for the opportunity.

Good afternoon, everyone. This is Swarnab from 360 ONE Capital.

Two, three questions from my side. On the MTF side, I wanted to understand we had a very strong run in 1Q, but as we move into 2Q, the first 15 days odd, the trend looks fairly flattish, and possibly you are not very divergent from what it was in the industry.

I just wanted to understand what has changed or what difference you are seeing from say the end of the quarter till now. Also, for the particular quarter, I wanted to understand that in terms of the active users for MTF, also, there has not been much change, although the assets have gone up quite sizeably.

How to read into this? That's the first one.

The second is again in the shareholders' letter, you have mentioned about the NSE actives and the focus in terms of building that. When I look at, for example, in terms of the MAUs and DAUs, those numbers look fairly stagnant.

In fact, DAUs have come off slightly from what it was in 4Q. How should we read into this?

These are the two questions on operating trends, and then I have couple of smaller questions. Maybe I'll take it after this.

Got it. I think first one, I was not sure that I understood the question, that end of quarter to today you are looking at trends from F&O perspective or you are looking at trends from cash equities perspective?

No, from the MTF book.

Okay. The challenge, I think, from end of the quarter and anytime when we are looking at in between is MTF specifically is a end of period number compared to if you look at even in last quarter because markets were down literally on the last day, and there is a effect on MTF indirectly that comes.

Similar is in this kind of last two weeks as well. The market when they closed in 30th June versus what it is today is very different.

Hence, that shows up in the MTF book as well. It was a bullish trend to kind of now a more volatile trend, and which has a negative impact on the MTF book.

The second part of the question was on the Sorry, I forgot.

On the MTF active users. What I see is it remains at around 0.13 million.

You talked about DAU as well, right? I think you talked about the DAU also.

I think, again, if you compare it with Q4, Q4 had a lot more volatility compared to Q1. If you compare it with Q3, you will still see a better trend.

I think that is probably a anomaly in Q4.

Understood. Because MTF is cash delivery oriented, even still you'd think that Q4 would have been an anomaly from that sense?

Q4 was anomaly because I think when quarter ended, actually, it ended at a negative note, hence the number was actually slightly lower. Q1 ended at a positive note, and hence the number was slightly better.

We are seeing that roughly ₹600 crore to ₹700 crores getting added on a quarterly basis on the book side, and which is continuing. If you average it out, I think it will come to the similar number.

Understood. The other queries that I had was one was that the cash yields improving, where do you think it is likely to stabilize when you evaluate from your side?

Second is that given that this quarter, 1Q versus 4Q, we have seen some softening in volumes because 4Q was more volatile, etc., on both the stock side as well as on the derivative side. Still our float income has gone up quite substantially this quarter.

Just wanted to understand that, what is playing out there? Is there more margin despite that, people willing to maybe keep it in their pooled accounts, etc.?

If you could give some color on that.

Actually, float income has another variable which is interest income as well. If interest rates have also changed between last quarter and this quarter, we saw the yields going up, which has benefited on the revenue side.

Average balance also, I think was probably not significantly higher than last quarter, hence the yield are up just because of the interest part of it.

Understood. If you could take the question on the cash yield?

Cash yield, I think it's, again, very difficult to estimate where it'll end because there is one variable because of MTF, it is doing well. There are multiple other variables like the average ticket size has also gone up over a period of time, which is also boosting the cash yield.

Our expectation is that in the near term, it'll definitely go up, but difficult to kind of estimate where will it stop.

Got it. Understood.

Very helpful. Thank you so much, and all the best.

Thank you for the opportunity. This is Sanketh from Avendus Spark.

My first question is on CAC. If I look at the CAC number per new NTU added, it seems to be around ₹1,900, and that number was around ₹1,400 in 1Q and around ₹1,000 in 4Q.

It seems to be a sharp jump in acquiring new customer. Just want to understand this could be the new normal, or is it you spent a little more on advertisement for any event, and that's the reason it went up?

That's my first question.

I think you probably already know that we do IPL in this quarter, and there's a significant amount of our marketing spends which goes into IPL, especially in Q1. If you look at it, it's not really directly correlated with how much acquisition that will happen.

There is a branding benefit out of it, then there are you can say if markets are doing well, probably we would have acquired significantly more. Hence, without the IPL spends, this number would have been significantly lower or more closer to what you were seeing earlier.

Okay. The reason I asked, Ishan, this question was that even in 1Q, you had IPL, right?

So ₹1,400 going to ₹1,900 is still a big jump per customer acquired, Ishan Bansal (Co-founder and CFO):

Only one week of IPL was there in Q4. This had almost two months of IPL, so that is the delta.

Okay. Understood.

Perfect. Second, just two data-keeping questions: in cash, ₹254 crores of revenue what you made in the current quarter, can you break it down as a percentage how much came from ₹20 per order and how much came ad valorem, which is linked to MTF book?

That's one question. Second, if you can give a data-keeping, the revenue from Fisdom and AMC will be useful.

We actually, on the first one, we don't kind of disclose those kind of numbers. That's too much detail.

It's not relevant. Also, there is a ₹5 minimum, there is MIS which has a slightly different kind of ticket size.

There's a lot of complications there, hence, I think average is probably what you have to work with. On the income or revenue from Fisdom plus AMC, I think it is part of the other income.

Roughly, I think between both of them, we are lesser than 2% is or closer to that number.

The reason I asking is that Fisdom, have you seen, after you acquired, a momentum improving? That's the reason I was asking, because in the PR it says

No, no. We haven't yet seen the significant improvement in revenue on Fisdom side.

I think it is still in the kind of more of a gestation stage, and we will kind of talk about it once it kind of becomes more relevant.

Perfect. That's it from my side.

Thank you.

Hi. This is Abhijeet from Kotak.

A couple of number questions. One is if you could comment on the cost to operate line which declined this quarter, and how should we think about the run rate going forward?

The second number question is, we had disclosed this data last quarter on new customer assets on the platform, close to about 25,000-odd crores. If you could disclose that number for this quarter if possible.

Then a qualitative question: so at the time of the IPO, we had disclosed a number on the affluent customer base and the overall contribution to the assets. Just wanted to understand the behavior of this customer profile, because as a platform, there is still a bit of a limitation in terms of offering assisted services or the wealth platform itself is sort of just starting to build up.

Just in terms of retention of these type of customers, if you could comment on that, that would be helpful as well. Thank you.

On cost to operate, versus last quarter, if you can see a slight improvement because last quarter had some one-time risk cost which were taken. We expect this cost to continue as is, with slight inflationary increase over coming quarters.

Sorry, there was one more question. I think on the affluent retention,

I think affluent

retention is actually significantly better compared to the other guys, because I think once you have AUM sitting with the platform, typically customer tends to kind of stick with it, and these are the customers who have been probably there with us also for a longer period of time. There is a habit also that they have formed and they probably really like it.

That's why they would have stick. It's a relatively a quality base, and there is a that's why their retention is very, very high.

When I say very, very high, it's almost 100%.

Got it. Sorry, one number on the customer assets?

Sorry, you are talking about the affluent assets?

Last quarter, we had the change in customer assets broken down into net inflows and market movement.

This time also

it is

actually the shareholders' letter. When you see the AUM, we talk about the inflows.

If you subtract it, then you will find the delta.

So

27,000 or something was the inflow, I think.

Sorry. I missed that.

Thank you.

Thanks for the opportunity. I am Nidhesh from Investec.

My question is on certain data point questions. Firstly, in RHP, you have disclosed year-wise customer revenue contribution on a yearly basis.

If you can share that data for FY26, that will be very useful, how FY26 revenue contribution is coming from the year of origination of the customer. That will be very very useful.

Secondly, can you comment on how the ARPU trends are there for the customer that you acquired in FY26 and the customers that got acquired in Q1 FY27?

Q1 FY27 is actually too nascent to kind of comment on the ARPU side, but overall, if you look at in FY26, the customer acquisition quality was better, and which we have seen across every year, that as the platform has become richer and bigger, the quality of the customer has been improving. We, as of now, haven't kind of built that data yet, but we will let you know once we have the data, we'll share it with you.

FY26 ARPU, customer acquired in FY26, the ARPU is better than previous year, first year ARPU?

Correct.

Correct. Thank you.

That's it from my side. Thank you.

Thank you. My name is Manish Ostwal from Nirmal Bang Securities.

My question on the first data-keeping question: what is the average yield on MTF book? The second question is on AI front, use of AI, where do you see the impact materially, running the business?

Operating cost will go down, or better cross-selling of opportunities, or maybe much more role in the wealth management business? Where do you see the AI is impacting in your business in a much bigger way?

Thank you.

I'll quickly take the first question and then I'll push it to Lalit. On the yield side, our pricing is fixed, actually.

It is 14.95%, and which is charged on this. There is a small delta between closing balances and average and stuff, hence, the yield slightly varies between that, but roughly the number is around 14.95%.

On AI, Manish, you answered the question partly yourself. First, let's talk about building the business, right?

All the product development and everything, like all engineers use AI a lot. It helps in kind of building things faster, higher quality, and so on, and a lot more things in parallel and so on.

That is one big leverage. Then on customer experience side, you can think of support services.

Now, earlier, if customer would call you, if everybody's busy, then you'll have to wait. Now, with AI, that kind of helps customers reach out to you faster, help their queries faster, the context that is available to our support executive is much, much higher, customer delight is much higher.

Then we have today, Groww's UX is it serves 80% of the use cases. For example, if you want to check your portfolio, you can open Groww and see.

Let's say if you want to know, 'Okay, I want to list all my stocks in the format in the ranking of magic formula,' which is high ROC or low P/E, and so on. Or you want to see, 'Okay, I want to check the latest quarterly some updates from the management,' and so on.

They are few use cases which are very, very edge cases which you can't kind of accommodate in UX. There, AI can quickly kind of go through all the data and then kind of help you faster.

That is GR1 and so on. Likewise, across the product, we see that.

Over time, we'll continue figuring out a lot more use cases that helps customers to kind of make better investing decisions as well.

Hi. Thanks a lot for the opportunity.

I represent TVS Capital. My two questions are I just wanted to understand what is a leg of product velocity beyond the products which you have spoken about?

We see FDs, bonds, etc., which are where other players are probably doing better in the market. I just wanted to understand what are those two or three new products which the company is thinking from a three to four-year standpoint beyond what you have spoken about?

Secondly, how is company currently using existing customer data? Is there some sort of personalization in the way the engagement is happening?

Because today the newsletter or even the app interface is probably more standardized. Is company trying to build something more personalized with the kind of data which Groww has today?

Just wanted to understand what is the thought process there, and maybe if you can elaborate more use cases on the AI, that would be helpful as well.

I think AI we already spoke, and as more use cases come, we'll kind of keep talking about them. On the new products, see, I think we are very thoughtful about launching products.

If you look at our sequencing also, we could have launched a lot of products three years back, but we assess the demand, then we assess our experience, and then we kind of do internal launches and then go, and so on. It's very hard for us to talk about next three to four years because a lot of products that we are launching, they will have their own new versions, next versions, and so on.

For next two years, for example, the current pipeline is looks very strong next one to two years, right? W is going to be a mammoth very large product.

It's not actually a product, it's mixture of multiple products within W, right? It's the full kind of set of products for affluent customers and HNI customers, and so on.

Then bonds we already launched last quarter, and we are seeing a very strong uptick there, and we are very kind of confident and happy about how it is progressing. US stocks we are going to launch now that it's GIFT City thing has kind of come around, and so on.

From product perspective, there is a very strong pipeline for us over next year and two. When we say products, as I said, best products are never kind of done.

You continue building them, kind of keep improving the customer experience further.

Got it. Any numbers here, Lalit, as in from example, bonds, how many customers have shown some positive response or even W for that matter, any indications on how the market is reacting to it, what click

We see good kind of, as I said, very good indication. Numbers, it's a bit kind of it will not make sense.

Numbers will not give you the right data. We will kind of talk about numbers in couple of basically in coming calls.

Got it. What about the user data which the second question which I asked

That's quite bit tricky also. See, basically, user data, user privacy is very important for us, but we do things which help customers in multiple ways, and so on, right?

We have to take care of a lot of things there while doing anything. We use some bit of kind of data to improve the customer experience.

We might do it more, but we have to be very careful about how customer thinks about this, which is very important for us.

Understood. Got it.

Thanks.

Thank you, Michelle. Thank you, everyone, for attending the call.

We appreciate all the questions, and please do feel free to reach out to our email on the shareholders' website for any further questions or clarifications. Thank you so much, and have a good week.