Grab Holdings Achieves First Full Year of Net Profit with Strong Revenue Growth February 27, 2026

Company Overview

Grab Holdings, Southeast Asia’s leading super-app platform, operates across mobility, deliveries, and financial services segments. The company has successfully transformed from a ride-hailing service into a comprehensive ecosystem-led monetisation model serving millions of users across the region.

Mobility Segment Driving Margin Expansion

Grab’s mobility division continues to deliver impressive results, with revenue growing 15% year-on-year and gross merchandise value (GMV) expanding 20%. The company has strategically expanded demand capture beyond its core app through partnerships with travel platforms including Trip.com and AliPay, resulting in over 10-fold growth in traveller monthly transacting users over three years. High-value airport trips now represent more than 10% of Mobility GMV.

Technology investments in AI dispatch and routing optimisation have enhanced marketplace productivity significantly. Driver earnings per online hour increased 29% whilst average trip fares decreased 16% from 2021-2025, as drivers complete more trips efficiently. This efficiency-led scaling has translated into meaningful operating leverage, with EBITDA margin expanding 20 basis points to 8.6%.

GrabMart Fuelling Deliveries Growth

GrabMart represents the next growth driver for Grab’s deliveries segment, expanding 1.7 times faster than GrabFood. This acceleration stems from deeper integration with major supermarket chains, improved fresh-item fulfilment capabilities, and refined merchant selection strategies that encourage users to shift from small top-ups to larger weekly shopping baskets.

The innovative GrabMore feature allows users to add groceries to food orders without additional delivery costs, strengthening cross-sell opportunities and usage frequency. GrabMart users increased 30% year-on-year in FY25, yet still represent only approximately 10% of Deliveries GMV, indicating substantial penetration potential as online grocery penetration in Southeast Asia remains in low single digits. Beyond growth, GrabMart provides margin accretion through larger basket sizes that improve cost absorption per trip and enhance fleet utilisation.

Strong Financial Performance Drives Analyst Confidence

Phillip Securities Research maintains its BUY recommendation for Grab Holdings with an unchanged DCF target price of US$7.00. The research house has rolled over valuations to FY26e and increased FY26e revenue and PATMI forecasts by 1% and 2% respectively, reflecting higher growth prospects and expanding margins across both on-demand and financial services divisions.

The fourth quarter of FY25 demonstrated robust performance, with revenue growing 19% year-on-year to US$906 million. This growth was driven by strong performances across key segments, with On-Demand services advancing 17% and Financial Services surging 34% year-on-year. Notably, 4Q25 PATMI outperformed expectations due to operating leverage and higher-margin monetisation through fintech and advertising services.

Frequently Asked Questions

Q: What is Phillip Securities Research’s recommendation and target price for Grab Holdings?
A: Phillip Securities Research maintains a BUY recommendation with an unchanged DCF target price of US$7.00.

Q: How did Grab perform in the fourth quarter of FY25?
A: 4Q25 revenue grew 19% year-on-year to US$906 million, with strong performances from On-Demand services (+17% YoY) and Financial Services (+34% YoY). PATMI outperformed due to operating leverage and higher-margin monetisation.

Q: What are the key growth drivers for Grab’s mobility segment?
A: Growth is driven by expansion beyond the core app through travel partnerships, technology investments in AI dispatch and routing optimisation, and improved marketplace productivity that has increased driver earnings per online hour by 29%.

Q: How is GrabMart contributing to the deliveries business?
A: GrabMart is growing 1.7 times faster than GrabFood, supported by deeper supermarket integration, improved fresh-item fulfilment, and the GrabMore feature. Users increased 30% year-on-year but still represent only 10% of Deliveries GMV.

Q: What efficiency improvements has Grab achieved in its mobility operations?
A: Driver earnings per online hour increased 29% whilst average trip fares decreased 16% from 2021-2025, as drivers complete more trips efficiently. EBITDA margin expanded 20 basis points to 8.6%.

Q: What is the growth potential for GrabMart?
A: GrabMart represents significant penetration potential as it accounts for only 10% of Deliveries GMV and online grocery penetration in Southeast Asia remains in low single digits, providing substantial runway for expansion.

Q: How has Grab’s business model evolved?
A: Grab has successfully transformed into a higher-margin, ecosystem-led monetisation model, moving beyond its original ride-hailing focus to encompass comprehensive on-demand and financial services with expanding margins.

Grab Holdings Achieves First Full Year of Net Profit with Strong Revenue Growth

This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.

Disclaimer

These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products.

Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance.

Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries.

The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries.

Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned.