BSE Shares Decline by 1% Amid Q4 Earnings, Analyst Sees Potential 11% Gain

BSE Posts 61% YoY Rise in Net Profit in March Quarter

Shares of the Bombay Stock Exchange (BSE) were trading in mild red in morning trade on May 8, after the stock exchange reported a 61% year-over-year (YoY) rise in net profit in the March quarter.

Notable Financial Performance

BSE reported a 61% jump in consolidated net profit at Rs 796 crore for the March quarter, driven by higher income. This represents a significant improvement from the previous financial year, when the company posted a consolidated net profit of Rs 493.67 crore in the corresponding quarter.

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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.

Share Price and Dividend

At 10:15 am on May 8, BSE shares were trading 1.2% lower at Rs 3,917 apiece. The board has recommended a final dividend of Rs 10 per equity share for FY26, subject to shareholders' approval at the ensuing annual general meeting.

Year-Over-Year Comparison

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Key Segments

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.

Brokerage Views

Domestic brokerage Motilal Oswal Financial Services sees up to 11% upside for the stock and said the results were in-line with its estimates. The brokerage raised its earnings estimates by 17%/20% for FY27E/FY28E, factoring in higher volume assumptions based on the robust Mar'26/Apr'26 run rate.

Motilal Oswal maintained its Neutral rating on the stock with a target price of Rs 4,400 (premised on 40x FY28E EPS). Nuvama, on the other hand, raised BSE target price by 21.5% to Rs 4,570 crore and maintained its 'buy' call. Nuvama also increased BSE FY27 adjusted PAT view by 12.3% and FY28 estimates by 15.9%.