Motilal Oswal Raises Price Target for Neutral BSE to Rs 4400

BSE Reports Strong Operating Revenue Growth in Q4FY26

Motilal Oswal's research report highlights a robust performance by the Bombay Stock Exchange (BSE) in the fourth quarter of fiscal year 2026. According to the report, BSE's operating revenue reached approximately INR15.6 billion, reflecting a growth of 85% year-over-year (YoY) and 26% quarter-over-quarter (QoQ).

This significant growth was driven primarily by a 114% YoY increase in transaction charges, while revenue from services to corporates declined by 5% YoY. For the fiscal year 2026, BSE's revenue grew by 63% YoY, reaching INR48.3 billion. Operating expenses (Opex) came in at INR5 billion, a 39% YoY and 13% QoQ increase, which was in line with expectations. This led to an earnings before interest, taxes, depreciation, and amortization (EBITDA) of INR10.6 billion, more than doubling YoY. The EBITDA margin stood at 67.9%, higher than the expected 67.1% and 57.2% in the fourth quarter of fiscal year 2025.

Outlook and Recommendations

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Motilal Oswal has raised its earnings estimates by 17% and 20% for fiscal years 2027 and 2028, respectively, based on the robust performance in the first two months of the fourth quarter of fiscal year 2026. However, the report does not factor in any potential impact from RBI regulations on proprietary trading. The research firm maintains a Neutral rating on the stock with a target price of INR4,400, premised on 40 times the estimated earnings per share for fiscal year 2028.

Revenue Comparison

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Note: Revenue growth percentages are based on year-over-year (YoY) and quarter-over-quarter (QoQ) comparisons.