November 20, 2025 : Shares of Groww (parent: Billionbrains Garage Ventures) extended their decline for a second straight day, plummeting as much as 9% on Thursday, November 20, 2025. This sharp downturn comes after a blistering post-listing rally, putting the stock approximately 20% below its recent record high. Market participants are closely watching Groww’s upcoming Q2 earnings and its share unlock timeline for fresh catalysts.
What’s Causing the Slide?
The drop is being widely attributed to profit-taking following a meteoric rise in Groww’s share price. The stock had surged nearly 90% above its issue price in a matter of days post-IPO.
At the same time, some investors and traders are exiting long positions, especially after witnessing the stock’s valuation zoom rapidly. According to market analysts, the recent rally was driven partly by technical factors, including a short squeeze due to Groww’s tight free float, which amplified volatility.
Market Cap Falls Below ₹1 Lakh Crore
As Groww’s share price slid, its market capitalization dropped below ₹1 lakh crore, according to trading data. For many early investors who loaded up during the rally, this correction may signal a pause in speculative momentum.
Q2 Earnings in Focus
A key trigger on investors’ radar is Groww’s first post-listing quarterly results, scheduled to be announced on Friday, 21 November 2025, as disclosed by the company. The earnings call is expected to provide a clearer picture of the platform’s financial health, profitability, and growth trajectory.
Given Groww’s rapid ascent, investors are keen to see whether the company’s fundamentals — revenue, margins, and customer acquisition — can justify its lofty valuation.
Lock-In Expiry Adds Pressure
Another point of concern is the upcoming expiry of a one-month lock-in period. On 10 December 2025, a significant portion of shares is expected to become tradable as the lock-in lifts. This could introduce further volatility and possible selling pressure as shareholders gain liquidity.
What Analysts Are Saying
Some market watchers caution that the post-IPO euphoria may have driven the stock to unsustainable levels. As quoted by Moneycontrol, Sunny Agrawal from SBI Securities said, “Risk-reward is still not favourable, and investors should wait for further dips and track upcoming quarterly results before adding the stock.”
Similarly, India Today pointed out that while Groww’s long-term story remains compelling — given its large user base and role in India’s retail investing boom — the short-term rally seemed less supported by fundamental drivers and more by speculative trading.
The Bigger Picture: Investor Caution Returns
Groww’s recent correction underlines a broader theme: speculative IPO euphoria can reverse quickly once profit-taking kicks in. For many new-age fintech firms, listing-day excitement often needs to be supported by real earnings and sustainable business metrics.
Furthermore, the company’s upcoming earnings report will be a litmus test for its ability to convert its retail investor base into profitable long-term customers. If the numbers disappoint, the current correction could deepen. But if Groww delivers strong growth, it may stabilize and regain investor confidence.
Key Risks & What to Watch
- Q2 Earnings (21 Nov): Will Groww’s financials back up its high valuation?
- Lock-in Expiry (10 Dec): The end of the lock-in period may trigger further selling pressure.
- Valuation Risk: Given the tight free float and high volatility, the stock remains sensitive to sentiment swings.
Overall, while Groww is still seen by many as a long-term play on India’s retail investing boom, the near-term outlook is cautious. Investors are now looking for a reset based on earnings clarity and calibrated liquidity before re-engaging aggressively.
Summary
Groww’s stock slid nearly 9% for a second straight day, dropping 20% from its record high amid profit-booking. Traders are watching closely as Q2 earnings and a lock-in expiry loom.