More Stories

Informist, Monday, Nov. 10, 2025

By Anshul Choudhary

MUMBAI - A change in derivative contracts' expiry day on BSE Ltd to Thursday from Tuesday hit the company's premium turnover in September, leading to the company reporting a marginal quarter-on-quarter fall in average daily premium turnover during Jul-Sep. Growth in the cash market turnover somewhat helped offset the impact of lower turnover from derivatives but couldn't prevent a slowdown in revenue growth and fall in profits, estimates by brokerages show.

The exchange's consolidated revenue during the September quarter is expected to rise 6-9% on quarter to INR 10.14 billion-INR 10.46 billion, according to estimates by three brokerages. The highest revenue estimate is from Nuvama Wealth Managament Ltd. and the lowest estimate is from Motilal Oswal Financial Services. In the June quarter, the exchange had reported a consolidated revenue from operations of INR 9.58 billion.

Estimates show the sequential revenue growth in the September quarter will be the slowest rise in three quarters. BSE will announce its earnings on Tuesday.

Compared to the previous year, the company's revenue during the quarter is seen jumping 36-40%, driven by market share gains in the derivatives segment over the past several quarters. However, the year-on-year rise in revenue will be the slowest in nine quarters due to slower growth in options turnover and as cash market turnover has not recovered to the previous year's level.

The slowdown in revenue growth hit profit and estimates show the consolidated net profit will be either unchanged from the June quarter or will fall slightly. BSE's consolidated net profit is expected to come in at INR 5.08 billion-INR 5.29 billion with the lowest estimate from brokerage Motilal Oswal and the highest from Nuvama. The exchange had reported a consolidated net profit of INR 5.27 billion for the June quarter from its continuing operations.

The likelihood of an outgo towards the core settlement guarantee fund may eat into the exchange's profits, estimates from Motilal Oswal and HDFC Securities showed. Brokerage Motilal Oswal expects an outgo of INR 300 million towards the fund in the reporting quarter. The company had not made any provision towards the fund during the June quarter.

Compared to the previous year, the net profit is expected to continue to see a rise with an estimated growth of 46-53%. However, the growth in net profit will be the weakest in five quarters.

CASH, F&O TURNOVER

According to data from the BSE's website, the company's average daily options premium turnover during the September quarter declined marginally to INR 150 billion as compared to the June quarter. This is the first time in several quarters that the company failed to grow its turnover in the options segment sequentially. Compared to the previous year, the daily options premium turnover was up nearly 83% during the quarter. The rise was slower than in the June quarter when it had more than doubled the turnover.

The exchange's derivatives business was hit after it changed the expiry day of futures and options contracts to Thursday from Tuesday following a circular by the Securities and Exchange Board of India which limited the expiry day to only two days in a week--Tuesday and Thursday. This change took effect in September and data showed BSE's average daily options premium turnover declined 8.5% on month in September itself.

This was anticipated by the market and shares of the company had fallen in September. This came on the back of another fall in August which was driven by concerns that SEBI was mulling curbing weekly derivative contracts .

Shares of the company had fallen in each month during the September quarter before recovering partially so far in the December quarter. The stock is up over 11% since it announced the June quarter earnings on Aug. 8. At 1317 IST, shares of the company traded 1.6% lower on the National Stock Exchange at INR 2,636 per share.

Turnover from the cash market improved in the September quarter sequentially but it has still not reached the level of last year--when trading activity was higher as the Nifty 50 kept hitting fresh lifetime highs every day. The Nifty 50 has come off highs since it touched a lifetime high in September last year and this has also meant a decline in traded volumes in the market. The average daily cash market turnover in the September quarter was up nearly 11% on quarter but down over 18% on year to INR 79.68 billion.

Out of the three brokerage reports on the company available with Informist, Nuvama and HDFC Securities have a 'buy' or an equivalent rating on the stock with target prices of INR 2,820 and INR 2,600, respectively. Motilal Oswal has a 'neutral' rating with a target price of INR 2,250.

Following are the Jul-Sept earnings estimates for BSE Ltd. from three brokerages in descending order of the estimate of net profit in INR billion:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Vandana Hingorani

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.