Shares of Billionbrains Garage Ventures Ltd, the parent company of Groww, fell sharply on Monday ahead of the expiry of its shareholder lock-in period. The stock declined 4.93 per cent to settle at Rs 194.50.

Despite the fall, the stock is still up 94.50 per cent from its initial public offering (IPO) upper price band of Rs 100. Groww had made its stock market debut on November 12 last year.

According to Nuvama Alternative & Quantitative Research, around 418.19 crore shares of Groww, representing nearly 68 per cent of its outstanding equity, will become eligible for trading from Tuesday, May 12.

The expiry of the lock-in period often raises concerns in the market about potential selling pressure from early investors, which can weigh on stock prices in the near term.

The Securities and Exchange Board of India (Sebi) mandates a minimum lock-in of 20 per cent of post-issue promoter capital for 18 months from the date of allotment or trading approval.

For non-promoter pre-IPO shareholders, Sebi requires a six-month lock-in period following a company's listing.

However, the expiry of the lock-in period does not necessarily mean that all eligible shares will immediately be sold in the open market. It only makes them eligible for trading.

Key investors in Groww include 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.

Q4 earnings

Meanwhile, Groww reported a strong set of earnings for the quarter ended March 31, 2026 (Q4 FY26).

The stock broking platform posted a 122 per cent year-on-year (YoY) jump in consolidated net profit at Rs 686 crore for Q4 FY26, compared with Rs 309 crore in the corresponding quarter last year.

Total income rose 80.73 per cent YoY to Rs 1,536 crore from Rs 850 crore in Q4 FY25, supported by strong business momentum despite softer market conditions.

Operating performance also improved significantly, with EBITDA climbing 141.81 per cent YoY to Rs 939 crore from Rs 388 crore a year ago. Groww’s platform EBITDA margin stood at 66.93 per cent during the quarter.

The company said its active user base increased 19.86 per cent YoY despite weakness in the broader market. Customer assets, including stocks and mutual funds, grew 34.7 per cent annually.

Mutual fund SIP inflows rose 34.85 per cent, while mutual fund assets under management (AUM) increased 38.91 per cent YoY.

Groww also highlighted diversification in its revenue mix through margin trading facility (MTF) and commodity trading. The contribution of equity derivatives to total income eased to 55 per cent in Q4 FY26 from 57 per cent in the year-ago quarter.