Earnings Review
BSE Apr-Jun consol PAT tops estimates as expenses fall QoQ
This story was originally published at 22:36 IST on 7 August 2025
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--Apr-Jun consol net profit INR 5.39 bln vs INR 4.94 bln qtr ago
--Analysts saw BSE Apr-Jun consol net profit at INR 4.70 bln
--Apr-Jun consol revenue INR 9.58 bln vs INR 8.47 bln qtr ago
--Q1 avg daily premium turnover INR 150.84 bln vs INR 117.83 bln qtr ago
--Q1 equity derivatives revenue INR 5.98 bln vs INR 4.75 bln qtr ago
--Q1 consol transaction charges INR 7.38 bln vs INR 6.12 bln qtr ago
--Q1 consol services to corporates INR 1.05 bln vs INR 1.25 bln qtr ago
--Q1 consol operating EBITDA INR 6.26 bln vs INR 5.94 bln qtr ago
--Apr-Jun consol operating EBITDA margin 65% vs 70% qtr ago
By Anshul Choudhary & Sunil Raghu
MUMBAI/AHMEDABAD – BSE Ltd.'s consolidated net profit in the June quarter topped expectations as the company's expenses declined on quarter. In a surprise, the company did not report any outgo towards the core settlement guarantee fund, which also aided profitability.
BSE's consolidated revenue for the quarter rose 59% on quarter to INR 9.58 billion, in line with expectations. At the same time, its expenses declined 8% on quarter to INR 3.59 billion.
Higher revenue and lower expenses helped the company report quarter-on-quarter growth in net profit while analysts had expected the net profit to fall. The company's consolidated net profit rose 9% on quarter to INR 5.39 billion. Analysts had expected the company to report a net profit of INR 4.70 billion. This growth came on the high base of the March quarter, when the exchange had reported a one-time income of INR 1.10 billion on reversing a provision made towards the core settlement guarantee fund.
The fund is a safety reserve maintained by clearing corporations to cover settlement defaults by trading members or brokers. BSE had made a contribution of INR 1.47 billion towards the fund in the December quarter and reversed the entry to the tune of INR 1.09 billion in the March quarter. The company did not make any provision for the fund in the June quarter.
The exchange's revenue saw the second slowest sequential growth in seven quarters. Sequential growth in revenue was slowest in the December quarter.
Consolidated revenue for the quarter was INR 9.48 billion, up nearly 12% from INR 8.47 billion in the trailing quarter. The company's investment income for the June quarter fell over 31% on quarter to INR 653.8 million, but the total income was up 9.4% sequentially at INR 9.48 billion.
The company's total expenditure for the June quarter fell over 8% to INR 3.59 billion from INR 3.92 billion in the trailing quarter. The regulatory contribution expense for the quarter rose nearly 11% on quarter to INR 1.16 billion. Clearing and settlement expenses fell over 10% to INR 555.0 million from INR 618.9 million in the March quarter. The technology expenses were INR 498.9 million, up nearly 9% on quarter.
The company's employee benefit expenses rose over 5% on quarter to INR 700.3 million. The other expenses incurred by the company for the June quarter fell nearly 51% on quarter to INR 407.8 million. Depreciation for the June quarter was INR 268.8 million, down almost 10% on quarter.
Analysts and investors largely track the exchange's growth in revenue, profitability, and net profit on sequential rather than year-on-year basis as trading volumes on the stock exchanges have grown rapidly over the past few years. Further, there is no seasonality in securities market activity.
BSE earns nearly two-thirds of its revenue through transaction charges. Income from transaction charges increased to INR 7.38 billion for the June quarter, up almost 21% from INR 6.12 billion in the trailing quarter, the company said in an investor presentation. The exchange's income from services to corporations fell 16% on quarter to INR 1.05 billion.
BSE's average daily premium turnover in the June quarter was INR 150.84 billion, compared with INR 117.83 billion in the March quarter. Sales from equity derivatives in the June quarter amounted to INR 5.98 billion, up from INR 4.75 billion a quarter ago.
BSE's consolidated operating earnings before interest, tax, depreciation, and amortisation for the June quarter was INR 6.26 billion, up 5.4% on quarter, with an operating EBITDA margin of 65%.
BSE reported its earnings for the June quarter after market hours Thursday. Shares of the company closed 2.3% higher at INR 2,442.20 on the National Stock Exchange. End
Edited by Rajeev Pai
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