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Informist, Wednesday, Jul. 15, 2026

 

--Billionbrains Garage: Don't see significant rise in headcount next 2-3 yrs
--CONTEXT: Comments by Billionbrains' mgmt in post-earnings analyst concall
--Billionbrains Garage:Saw softness in F&O active users Q1 due to W Asia war
--Billionbrains Garage:F&O turnover for co highly correlated with volatility
--Billionbrains Garage: Fair client adoption in co's commodity F&O offering
--Billionbrains Garage: Float income rose Q1 on higher yields vs Q4
--Billionbrains Garage: Q1 average yield on MTF book around 14.95%
--Billionbrains Garage:To launch US stocks trading from GIFT City in some mos
--Billionbrains Garage: Seeing a strong client uptick in bonds offering
 

By Eshitva Prakash and Rajesh Gajra

 

MUMBAI – Billionbrains Garage Ventures Ltd. said futures and options turnover on its platform fell in the first week of July and at the end of June, primarily due to a decline in market volatility as the war in West Asia seemed to be headed for an end. Client engagement with this product has a high correlation with volatility, and with the resumption of war in West Asia, volumes on equity derivatives have increased again, the brokerage firm, that operates under the Groww brand name, said in a post-earnings conference call with investors and analysts.

 

In the last few days the market has again seen news on the Iran war came back and volatility has again picked up, leading to client trades go up, a senior company execuitve said. "So, it is, we are seeing the higher correlation with volatility than actually any regulations as of now," he said. He added that its margin trading facility book was also impacted by the war in West Asia, as markets swung from "a bullish trend" to more volatile bearish trend which "had a negative impact on the MTF (margin trading facility) book."

 

On the reason behind the rise in float income of the company and its contribution to total revenue rising to 8.1% in the June quarter from 7.6% in the trailing quarter, the management said the float income was not higher because of an increase in average balance of client funds in the broker's pool account but on account of an increase in interest income on client funds with the broker. "We saw the yields going up which has benefited on the revenue said," a senior executive said.

 

The margin trading facility book of Billionbrains Garage rose to INR 37.75 billion in the June quarter from INR 28.14 billion in the trailing quarter on the back of product penetration, the company said in its earnings investor presentation. The margin trading facility's contribution to total revenue rose to 8% in the June quarter from 6.9% in the trailing quarter. The management said the company earned a yield of around 14.95% on its margin trading facility book in the June quarter, around the same fixed pricing it keeps on the product.

 

The company did not fare well in the equity derivatives segment, which contributes the most to the company's total revenue. This segment's contribution to revenue fell to 52% in the reporting quarter from 54.8% in the March quarter, as per the investor presentation. The management said in the conference call that this was "relatively an exception" and that one "should not read too much" into it. 

 

A senior executive said the June quarter was unique because of the West Asia war, but given that a large part of the war also took place in the March quarter, the shifting impact on market volatility and equity derivatives volume weighed on income from the segment.

 

The cash market segment's contribution to Billionbrains Garage's total income was sequentially flat at 16.4% in the June quarter. The management replied in the affirmative to an analyst's question on whether a back-of-the-envelope calculation indicated a 9?cline in the number of cash segment orders in the June quarter.

 

The commodity derivatives offering by the company, which was launched around two years ago, is now witnessing a "more or less adoption" by clients, a senior executive said. Sequentially, the commodity derivatives segment's contribution to total revenue increased to 4.9% in the June quarter from 4.5%.

 

The management also indicated that it would launch trading in US stocks from its GIFT City platform in a few months. On the recently-launched bonds platform, the management said it was seeing strong growth and the company was confident about how it was progressing. To an analyst's question on whether the rise in employee expenses in the June quarter indicated rising onboarding of employees, the management said the increase was due to employee appraisals and not because of any significant increase in headcount. "And in the longer run also, we don't expect there will be a crazy increase in headcount." 

 

For the June quarter, the company's consolidated net profit increased 7% on quarter and 94% on year to INR 7.35 billion, while its revenue from operations declined 0.3% on quarter and rose 66% on year to INR 15.01 billion. On Wednesday, shares of Billionbrains Garage closed 6.2% higher at INR 216.33 on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

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