Shares of Billionbrains Garage Ventures Ltd, the parent company behind the popular investment platform Groww, experienced a significant decline on Monday, May 11, 2026. The stock slumped 4.93% to settle at Rs 194.50, driven by market anticipation of an impending shareholder lock-in period expiry.
Despite this daily drop, Groww's stock still maintains a strong position, trading 94.50% above its initial public offering (IPO) upper price band of Rs 100. The company made its stock market debut on November 12 last year.
Lock-in Expiry Fuels Selling Pressure Concerns
A primary factor contributing to today's slump is the upcoming expiry of the shareholder lock-in period. According to Nuvama Alternative & Quantitative Research, an estimated 418.19 crore shares of Groww, constituting nearly 68% of its total outstanding equity, will become eligible for trading starting Tuesday, May 12.
The expiration of such lock-in periods often triggers market concerns about potential selling pressure from early investors, who may choose to offload their holdings once they are free to do so. This can lead to downward pressure on stock prices in the short term.
The Securities and Exchange Board of India (Sebi) mandates specific lock-in periods for pre-IPO shareholders. Promoters are typically required to hold a minimum of 20% of post-issue capital for 18 months, while non-promoter pre-IPO shareholders face a six-month lock-in period following a company's listing. Key investors in Groww include prominent names such as Peak XV Partners (formerly Sequoia Capital India), YC Holdings, Ribbit Capital, Internet Fund managed by Tiger Global Management, Propel Venture Partners, and Sequoia Capital Global Growth.
Strong Q4 FY26 Earnings Reported
The recent stock decline occurs even as Groww announced a robust financial performance for the quarter ended March 31, 2026 (Q4 FY26). The stock broking platform reported a substantial 122% year-on-year (YoY) increase in consolidated net profit, reaching Rs 686 crore, up from Rs 309 crore in the corresponding quarter of the previous year.
Total income for Q4 FY26 climbed 80.73% YoY to Rs 1,536 crore, compared to Rs 850 crore in Q4 FY25. This growth was supported by strong business momentum, despite what the company described as softer market conditions. Operating performance also saw significant improvement, with EBITDA soaring 141.81% YoY to Rs 939 crore from Rs 388 crore a year ago, achieving a platform EBITDA margin of 66.93% for the quarter.
Groww further highlighted an increase in its active user base by 19.86% YoY, alongside a 34.7% annual growth in customer assets, including stocks and mutual funds. Mutual fund SIP inflows rose 34.85%, and mutual fund assets under management (AUM) expanded by 38.91% YoY. The company also noted a diversification in its revenue mix, with contributions from margin trading facility (MTF) and commodity trading, while the contribution of equity derivatives to total income slightly eased to 55% in Q4 FY26 from 57% in the year-ago quarter.