Another solution is to simply use two repeaters, one nested within the other. You can pass your groups with the child records to the first repeater, and on the ItemDataBound of the groups repeater, pass the child records to the child repeater and call DataBind() there.
This is more code but does actually give you more control over the layout without having HTML creation code in your code-behind.
As you can see here, we have a parent repeater and in the item template we can customise each group as we see fit. In the ChildRepeater, we have our item template in which we can customise each item inside the grouping. Very clean and all with declarative UI.
<asp:Repeater runat="server" id="GroupRepeater">
<ItemTemplate>
<asp:Literal runat="server" id="HeaderText" />
<asp:Repeater runat="server id="ChildRepeater">
<ItemTemplate>
<asp:Literal runat="server" id="InfoGoesHere" />
</ItemTemplate>
</asp:Repeater>
</ItemTemplate>
</asp:Repeater>
In the code behind we can have something like this:
private void GroupRepeater_ItemDataBound(object sender, RepeaterItemEventArgs e)
{
//Get the child records, this can be any data structure you want
SomeChildCollection children = ((SomeGroupCollection)e.Item.DataItem).Children;
//Find the child repeater
Repeater childRepeater = e.Item.FindControl("ChildRepeater") as Repeater;
childRepeater.ItemDataBound += SomeMethod;
childRepeater.DataSource = children;
childRepeater.DataBind();
}
After binding each child you can subscribe to the ItemDataBound event and do the child binding to controls as you see fit.