The stock exchange’s price hit a new 52-week high on May 8, rising to Rs 3,994 apiece following strong Q4FY26 results. In its quarterly results, the company’s profit jumped 61 per cent to Rs 795.47 crore.
Following its result on Thursday, the exchange’s stock surged nearly 3 per cent as it hit the upper circuit on robust earnings momentum. Over a five-year time frame the stock has surged nearly 5,000 per cent. In year-to-date, the the index delivered a robust 75.52 per cent return, while over a three-year period, it has generated 2,091.24 per cent return.
Brokerages On BSE Q4FY26 Result
The brokerage noted that BSE delivered Q4FY26 index options ADPTV MS of 29.9 per cent (+57bp QoQ) driving up revenue by 84.7 per cent YoY/25.7per cent QoQ. Operating leverage drove up EBITDA margins by 580bp QoQ to 66.6 per cent resulting in EBITDA of Rs 10.4bn (114.9 per cent YoY/37.7 per cent QoQ), a beat of 6.2 per cent. With five expiries in Apr-26 (versus four for NSE) and sustained ADPTV of Rs 331 bn (Rs 330 bn in Mar-26), its MS surged 922bp MoM to 37.1 per cent.
“We are tweaking ADPTV estimates incorporating early STT hike impact, lifting our FY27E and 28E APAT by 12.3 per cent and 15.9 per cent, yielding a target price of Rs 4,570 (earlier Rs 3,760) i.e. PE of 45x plus 15 per cent stake in CDSL. Post-NSE listing, there shall be further upgrades in earnings. At current market price, the stock trades at FY27E and 28E PE of 45.6 times and 38.9 times; maintain ‘Buy’.
The brokerage noted that BSE has delivered another strong quarter, driven by sustained market share gains and robust growth in equity index options volumes. Revenue from operations rose 85 per cent YoY in Q4FY26 and 63 per cent YoY in FY26. Co-location revenue more than doubled in FY26, with rack count reaching 500, while BSE’s diversified revenue mix continued to support growth. Key strategic priorities remain increasing non-expiry volumes, improving participation in monthly contracts, and attracting long-term institutional/FPI investors. PAT grew 61 per cent YoY in Q4FY26 and 89 per cent YoY in FY26. Dividend payout is expected to remain relatively low as the company continues to invest aggressively across technology, co-location infrastructure, and capacity expansion initiatives.
The brokerage noted that the stock is currently trading at 45 times FY28E EPS; “we now value BSE at 44x (vs 42x earlier), implying a revised target price of Rs3,902 (vs Rs3,331). However, given the recent sharp run-up in the stock price, we downgrade the stock from ‘Buy’ to ‘Neutral’.”
BSE Ltd reported a 61 per cent jump in its consolidated net profit to Rs 795.47 crore for the January-March quarter of FY26, on the back of higher income. The company had posted a consolidated net profit of Rs 493.67 crore in the corresponding quarter of the previous financial year. Revenue from operations stood at Rs 1,563.51 in Q4 FY26 against Rs 846.64 crore in the year-ago period, representing a growth of 84.67 per cent YoY.
The company’s total revenue during the January-March period rose to Rs 1,630 crore from Rs 926.38 crore in the year-ago period, according to a regulatory filing. On a sequential basis, BSE’s PAT increased 32 per cent in Q4 FY26 from Rs 602 crore in Q3 FY26. Th e exchange’s topline grew by 26 per cent compared to Rs 1,244 crore posted in the October-December quarter of FY26.
BSE earned Rs 1,311 crore from transaction charges, recording a 114 per cent surge in the reporting quarter against Rs 953 crore posted in the year-ago period. The gains accounted for 38 per cent quarter-on-quarter against Rs 612 crore in Q3 FY26. For the full financial year 2025-26, the bourse’s net profit jumped 88 per cent to Rs 2,487 crore as against Rs 1,322 crore in FY25.
The BSE said it recorded its highest-ever performance in its 150-year history in FY26, with revenue rising 59 per cent year-on-year to Rs 5,148 crore from Rs 3,236 crore in the preceding fiscal year. BSE’s equity derivatives segment posted strong growth in FY26, with revenue more than doubling to Rs 3,134 crore, aided by a rise in average daily premium turnover to Rs 19,522 crore from Rs 8,977 crore in the previous financial year.
The exchange’s mutual fund distribution platform, BSE StAR MF, also delivered a robust performance during the year, with revenue rising to Rs 285 crore and transactions increasing to 84.1 crore. The registered investors stood at 24.8 crore and its equity cash segment average daily turnover (ADTO) stood at Rs 7,950 crore. BSE also helped companies mobilise Rs 26.9 lakh crore in FY26.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
