More Stories

Informist, Tuesday, May 5, 2026

By Shweta

NEW DELHI – BSE Ltd. is expected to see a strong on-year growth in its top line and bottom line for the March quarter on a healthy rise in index options revenue, according to analysts. The exchange is likely to report robust earnings for a "sixth consecutive quarter" as average daily traded volumes for the March quarter surged nearly 49% on quarter, Nuvama Wealth Management Ltd. said in a report.

BSE is expected to report a consolidated net profit of INR 7.56 billion-INR 7.97 billion for the March quarter, up 53-61% on year, according to three brokerages. The company had reported net profit of INR 6.26 billion in the December quarter. The highest estimate for the exchange's net profit is INR 7.97 billion from Motilal Oswal Financial Services Ltd. The lowest estimate is INR 7.56 billion from HDFC Securities Ltd. The exchange will detail its March quarter earnings on Thursday.

The exchange is likely to report consolidated revenues of INR 15.33 billion-INR 15.80 billion, up around 67-72% on year and 15-19% sequentially, according to the average of estimates. Estimates for the exchange's net sales range from a high of INR 15.80 billion from Motilal Oswal to a low of INR 15.33 billion from Nuvama.

The derivatives segment is estimated to contribute around 72% to the total revenue at INR 11.28 billion, Motilal Oswal said. "The regulatory concern around weekly options are now behind and BSE has been gaining market share."

HDFC Securities sees the exchange's growth in revenues to be "partly offset by softer cash and decline in IPO (initial public offering) revenue."

During the March quarter, BSE recorded a strong index option average daily traded volumes, "surging 48.6% quarter-on-quarter to INR 289 billion," Nuvama said. The growth in options premium drove transaction revenue, HDFC Securities said in a report. Motilal Oswal said the exchange may see strong transaction revenue growth on the back of robust expansion in the equity derivatives volumes.

In the options segment, the exchange's notional market share was 48.5% and its premium market share was 30% in January. However, the notional market share came down to around 44% and premium market share to 26% in the remaining two months of the quarter.

The exchange's consolidated earnings before interest, tax, depreciation, and amortisation are expected at INR 9.8 billion-INR 10.6 billion for the March quarter, according to Nuvama and Motilal Oswal's estimates. Its EBITDA margins are estimated at 67% for the period, higher than 57% a year ago and 63% a quarter ago. "EBITDA margin is anticipated to improve sequentially, led by strong growth in revenue," Motilal said.

For the financial year 2025-26 (Apr-Mar), BSE's net profit is estimated to grow over 89% on year to INR 24.98 billion and its revenue projected to rise 51% to INR 48.50 billion, according to Motilal Oswal.

Analysts at Nuvama said that they will track the impact of a hike in securities transaction tax on market volumes. In the Budget for FY27, the government had raised the securities transaction tax on futures transactions to 0.05% from 0.02% and that on options premium and exercise of options to 0.15% each from 0.10% and 0.125%, respectively. The new tax rates came into effect from Apr. 1.

Shares of BSE have risen nearly 18% since it announced its December quarter earnings on Feb. 9. At 1207 IST, shares of the company traded at INR 3,743.30 on the National Stock Exchange, up 0.8% Tuesday.

Out of the five brokerage reports on the company available with Informist, three have a 'buy' or an equivalent recommendation on the stock with a target price of INR 3,539. This is nearly 3% higher than the current market price. The other two brokerages have a 'hold' or an equivalent recommendation with a target price of INR 2,950.

Following are the March earnings estimates for BSE Ltd. from three brokerages in ascending 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 Akul Nishant Akhoury

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 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.