Groww and BlueStone Surge Amid Mixed Week for New-Age Tech Stocks
The Indian tech stock market experienced a turbulent week, with 22 out of 56 new-age tech stocks under Inc42’s coverage showing gains, while 34 saw declines. This fluctuation led to a dip in the cumulative market cap of these stocks, falling from $133.72 billion to $131.25 billion. The market’s volatility was influenced by geopolitical tensions in West Asia, the Q4 earnings season, and persistent selling by foreign institutional investors.
Groww’s Strong Performance
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Groww emerged as a standout performer this week, with its shares reaching an all-time high of ₹223.65. The stock gained around 10% to close at ₹218.05, driven by impressive Q4 FY26 financial results. The company reported a 122% year-on-year increase in net profit to ₹686.4 crore, bolstered by operating leverage and expanding margins. Revenue surged 88% to ₹1,505.4 crore, while EBITDA increased by 142% to ₹938.7 crore.
The stockbroking platform’s growth was fueled by robust trading activity, with equity derivatives contributing 55% of total income. Groww ended the quarter with 2.2 crore transacting users, a 25% increase year-on-year, and customer assets rising 36% to ₹3 lakh crore. Despite losses in newer ventures like Fisdom and Groww MF, the company remains optimistic about scaling these businesses.
BlueStone’s Profitable Fiscal Year
BlueStone also saw positive momentum, with shares climbing 4.68% to end the week at ₹546.75. The omnichannel jewellery company reported its first profitable fiscal year, posting a net profit of ₹31.2 crore in Q4 FY26 compared to a loss of ₹51.3 crore a year ago. For the fiscal year, BlueStone recorded a profit of ₹26 crore, reversing a previous loss of ₹219.2 crore.
The company’s Q4 revenue grew 48% year-on-year to ₹681.5 crore, with adjusted EBITDA increasing 3.5 times to ₹147.4 crore. However, profit was impacted by non-cash ESOP expenses and lease-related charges. BlueStone ended FY26 with 340 stores across 134 cities, focusing on entry-level products amid rising gold prices.
Implications for India’s Startup Ecosystem
The performance of Groww and BlueStone highlights the resilience and potential of India’s new-age tech companies despite broader market challenges. Groww’s success underscores the growing appetite for digital financial services, while BlueStone’s profitability reflects the potential in the omnichannel retail space.
These developments occur against a backdrop of mixed economic signals for India. The index of eight core industries contracted, and Moody’s revised India’s GDP growth forecast downward. However, the composite PMI rose, indicating some economic resilience. The ongoing correction in tech stocks suggests a cautious investment climate, influenced by global uncertainties and domestic economic indicators.
Looking Ahead
As the market navigates this period of correction, the focus will likely remain on companies that can demonstrate strong financial performance and adaptability. The trajectory of Groww and BlueStone could serve as a benchmark for other startups aiming to capitalize on digital transformation and consumer trends in India.
