October 30, 2025

Hold on tight, investment lovers! SEBI’s new curbs on retail futures and options (F&O) trading are the talk of the town, and guess who’s weathering the storm better? It’s Groww! According to a spicy note by Nuvama Institutional Equities, the Bengaluru-based investment platform will face a smaller hit than Angel One if F&O orders drop by 5%. Nuvama’s magic numbers say Groww’s revenue would fall by only 2.5% and its after-tax profit by 4.4%. Angel One, on the other hand, could see a 2.3% revenue drop but a steeper 5.2% fall in profit! But hold your breath — the pressure on earnings before depreciation and tax (Ebdat) margins will also be gentler for Groww, at 122 basis points compared to Angel One’s 135. Why? Groww’s secret sauce: its dependence on derivatives is reducing. Back in FY24, a whopping 90.2% of Groww’s broking revenue came from F&O deals, but by June quarter FY25, that number dipped to 62%. That’s a cool decline! For Angel One, although their F&O share also shrank, it went from 84.4% down to 74.5%, which is a smaller fall. SEBI’s crackdown aims to protect you, the retail investor, from heavy losses and to keep the markets stable and safe. And Groww, which recently took the crown from Zerodha and Angel One as India’s largest retail broker, has been growing like a rocket. Its active client share hit 26.3% by September 2025, and the client base exploded at a crazy compound annual growth rate of 101.7% since FY21 — way ahead of the industry average of 27%. But Groww isn’t just resting on broking. The platform is also venturing into exciting new corners like margin trading, loans against securities, personal loans, and wealth management. Though these are still budding, they hint at a broader business future. And here comes the big news! Groww is all set to dazzle the market with its massive Rs 6,000-7,000 crore initial public offering (IPO). The company has submitted its updated draft red herring prospectus to SEBI and is eyeing a November listing. The valuation? A whopping $7-9 billion! So, while SEBI’s rules shake up the derivatives space, Groww’s mix of smart moves and strong growth keeps it ahead in this thrilling race.

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Tags: Groww, Angel one, Futures and options, Sebi, Retail trading, Ipo,