FIIs and mutual funds increase stakes in Groww. Should you buy, sell, or hold?

Shares of Billionbrains Garage Ventures, the parent company of digital investment platform Groww, have been volatile. Yet behind the short-term price swings, a bigger trend is emerging: institutional investors are showing increasing confidence in the company’s growth story. Foreign Institutional Investors (FIIs) and Mutual Funds both raised their holdings in Groww during the June 2026 quarter, signalling that large investors are optimistic about the company’s ability to benefit from India’s rapidly expanding retail investment market.

The optimism is also supported by Groww’s strong Q1FY27 performance. The company delivered a strong Q1FY27 performance, with net profit surging 94% year-on-year and revenue climbing 66%. Following the results, several leading brokerages maintained a positive view on the stock, with some raising their price targets.

With institutional ownership rising and earnings momentum improving, the key question for investors is — should you Buy, Sell, or Hold Groww shares?

Groww Q1FY27 Results: Profit nearly doubles, Revenue jumps 66%

The company reported a 94.44% year-on-year jump in Q1FY27 net profit to Rs 735 crore, compared with Rs 378 crore in the corresponding quarter last year.Groww’s revenue from operations also witnessed a sharp uptick, rising 66% to Rs 1,504 crore from Rs 904 crore in the corresponding quarter of the previous financial year.

What are brokerages saying after the Q1FY27 results?

Global brokerage Jefferies has maintained a positive stance on Groww and assigned a target price of Rs 250, indicating a potential upside of around 21%.According to Jefferies, Groww is well positioned to benefit from the structural shift in household savings from traditional fixed-income products toward equity and market-linked investments. The brokerage highlighted Groww’s product-agnostic platform, noting that expansion into newer products and services could increase customer engagement and improve wallet share.

Jefferies has raised its FY27-FY29 earnings per share (EPS) estimates by 1-6%, with the revised target price also reflecting a valuation roll-forward to September 2028. The brokerage noted that the stock currently trades at around 45 times FY27 estimated earnings, with an expected three-year EPS compound annual growth rate (CAGR) of about 30%.JM Financial has turned more positive on Groww, upgrading its rating from Sell to Buy and increasing the target price to Rs 250 from Rs 170. The brokerage said its confidence in Groww’s growth outlook has improved after the company delivered a resilient performance despite a slowdown in retail trading activity compared with the previous quarter’s peak.JM Financial highlighted improving operational efficiency, with Groww’s cost-to-income ratio declining by 3 percentage points quarter-on-quarter to 36%. The brokerage has raised its FY27, FY28, and FY29 EPS estimates by 4%, 6%, and 11%, respectively. It now values Groww at a 50% premium to Angel One, compared with 20% earlier, citing stronger earnings growth, better margins, and a larger customer asset base.Motilal Oswal has also retained its Buy rating on Groww with a revised target price of Rs 250. The brokerage expects Groww’s broking order volumes to grow by more than 20% during FY27 and FY28, supported by continued market share gains and improving revenue per order. It believes additional growth drivers could come from businesses such as Margin Trading Facility (MTF), Loan Against Securities (LAS), and wealth management services.

Motilal Oswal has increased its earnings estimates by 1% for FY27 and 3% for FY28, factoring in improved operating efficiency. The revised target price is based on a valuation of 38 times FY28 estimated EPS.

The rise in institutional ownership, strong customer growth, improving operational efficiency, and positive brokerage commentary indicate growing confidence in Groww’s long-term story.

For long-term investors, Groww’s expanding ecosystem, rising retail participation in equities, and institutional backing remain key positives. Short-term investors may need to monitor valuation comfort and market volatility before taking fresh positions.

Groww shares doubled investor wealth since listing

Billionbrains Garage Ventures made its stock market debut on November 12, 2025, listing on both the NSE and BSE. The company’s IPO was priced at Rs 100 per share, while the stock opened at a listing price of Rs 112 per share. Since then, the stock has delivered strong returns. Currently trading around Rs 203 per share, Groww has more than doubled investor wealth from its issue price in just about eight months.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)