BSE shares rose 6.15% to ₹3,822.90 at about 12:45 PM on Thursday, among the top gainers on the Nifty 50, after the exchange reported its September-quarter results.
Consolidated net profit rose 44.9% to ₹809.15 crore from ₹558.43 crore a year earlier. Revenue from operations rose 34.1% to ₹1,432.66 crore. EBITDA rose about 42% to ₹984 crore, and the EBITDA margin widened to about 68%.
Transaction charges remained the main source of income at ₹1,127.8 crore. Equity derivatives recorded average daily premium turnover of ₹22,531 crore.
For the first half, profit rose 53% to ₹1,680 crore and revenue 48% to about ₹2,999 crore.
A smaller slowdown than NSE
Like every exchange, BSE was affected by slower trading in July–September, when foreign selling and the Iran war weighed on markets. Compared with the June quarter, BSE’s profit fell 7.4% from ₹874.02 crore, and revenue fell 8.5% from ₹1,566.02 crore.
That decline was much milder than NSE’s. NSE, which reported its first results as a listed company on Tuesday, saw profit fall 17.4% and transaction revenue 16% from the June quarter.
The difference suggests BSE has continued to take market share in derivatives, where it has grown rapidly over the past two years by offering its own index options as an alternative to NSE’s. A larger share of a slowing market is cushioning BSE more effectively.
Why the stock rose
Several factors explain the 6% rise.
October looks better. Motilal Oswal raised its earnings estimates for BSE by 3% for FY27 and 5% for FY28, citing strong trading volumes in October, according to Business Standard. With the market rallying in early November, the December quarter could see a recovery from the September dip.
New products. BSE entered a partnership with MSCI to develop and expand MSCI-linked derivatives products. That could open a new source of trading volume.
Mutual fund platform growth. BSE StAR MF, its mutual fund transaction platform, processed 24.52 crore transactions in the quarter, up 21.9%. That business is steadier than derivatives trading and benefits from rising SIP flows.
Real estate. BSE’s board approved accepting a plot offered by the Mumbai Metropolitan Region Development Authority in Bandra Kurla Complex, Mumbai’s main financial district.
The market mood. Exchange stocks benefit when markets rally, since higher activity means more trading fees. With the Sensex up more than 1,500 points, investors bought stocks linked to market activity.
The main risk for BSE remains regulation. Like NSE, BSE earns a large part of its revenue from equity derivatives, particularly options, which SEBI has been tightening for two years. Any further restrictions would affect BSE’s fastest-growing business. For now, though, BSE’s results show it is gaining ground on its larger rival, and investors rewarded it accordingly.
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