Mumbai, May 8: BSE Limited reported strong financial performance for Q4FY26 and FY26, supported by sharp growth in derivatives trading, transaction revenues, and improving operating leverage.
For Q4FY26, revenue from operations increased 84.7% year-on-year to Rs 15.64 billion, while EBITDA surged 119.2% to Rs 10.61 billion. EBITDA margins improved significantly to 67.9% compared to 57.2% in the corresponding quarter last year.
Profit After Tax (PAT) for the quarter rose 61.1% year-on-year to Rs 7.96 billion, broadly in line with market expectations. For the full financial year FY26, BSE reported revenue growth of 63.5% to Rs 48.34 billion, while PAT increased 88.1% to Rs 24.87 billion.
The company announced a dividend of Rs 10 per share.
BSE’s operational performance remained strong during the quarter, with Cash Average Daily Turnover (ADTO) increasing 65.7% year-on-year to Rs 90.3 billion, while Index Premium ADTO surged 145.5% to Rs 289.2 billion.
Transaction revenues rose 114.3% year-on-year to Rs 13.11 billion, accounting for 83.8% of overall revenues during the quarter. Equity derivatives remained the largest contributor, with revenues from the segment increasing 137.6% year-on-year to Rs 11.28 billion.
The exchange also reported healthy growth in mutual fund transactions, which rose 34% year-on-year during the quarter.
Management highlighted a strong IPO pipeline for FY27 with over 250 applications and potential fundraising exceeding Rs 1.75 trillion. The company also announced plans to launch three new monthly index derivative contracts, including Focused IT, Focused Midcap, and Sensex Next 30.
The company stated that participation from Foreign Portfolio Investors (FPIs) and members continues to increase, with member count crossing 580 by March 2026 and a target of reaching 700 by FY27-end.
At the current market price of Rs 3,964, the stock trades at approximately 53x FY27E EPS and 44x FY28E EPS based on previous estimates. Analysts have maintained an “ADD” rating on the stock, with the target price currently under review.
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