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    BSE

    BSE
    Financial Services·13 Aug 2025
    Management Summary

    BSE delivered its best-ever quarterly financial performance in Q1 FY26, driven by robust growth in its derivatives segment, record SME listings, and strong performance from BSE StAR MF. Despite some economic fragility impacting equity cash volumes and a decline in treasury income, the company achieved significant revenue and profit growth, alongside substantial margin expansion. Management highlighted strategic focus on customer-centricity, governance, and expanding product offerings.

    Highlights

    8

    • Topline reached a historic high of ₹1,045 crores for the first time ever.

    • Consolidated operational revenues grew 59% YoY to ₹958 crores from ₹602 crores.

    • Net profit attributable to shareholders surged 104% YoY to ₹539 crores from ₹265 crores.

    • Operating EBITDA increased to ₹626 crores from ₹282 crores, with margins expanding to 65% from 47%.

    • Transaction charges increased 84% to ₹737 crores from ₹400 crores.

    • BSE StAR MF revenues grew 30% YoY to ₹61.2 crores, processing 18.3 crore transactions (up 30% YoY).

    • Crossed 600 SME listings, with July 2025 seeing a record 18 new listings raising ₹880 crores.

    • Index derivatives segment recorded its highest ever average daily premium turnover of ₹15,084 crores.

    Concerns

    3

    • Treasury income from clearing and settlement decreased 27% to ₹45 crores from ₹62 crores.

    • Cash market trading volumes remained at long-term normalized levels of ₹7,180 crores in Q1 FY26, down from ₹9,005 crores in the same period last year.

    • Economic fragility impacted equity cash volumes this quarter.

    What Changed3

    vs Q2 FY26

    Guidance items3 → 0 (-3)Risks discussed4 → 3 (-1)Q&A highlights3 → 7 (+4)

    Key financials

    Single quarter

    07 metrics
    1. 01Topline Revenue₹1,045 Cr
    2. 02Operational Revenue₹958 Cr+59%YoY
    3. 03Operating EBITDA₹626 Cr+121.9%YoY
    4. 04Operating EBITDA Margin65%
    5. 05Net Profit₹539 Cr+103.4%YoY

    Derivatives Regulatory Process

    next quarter
    CurrentConsultative and evolving, no new processes started yet for further regulations.
    TargetAny new consultative processes or regulations announced/implemented.

    Why it matters

    Potential regulatory changes could impact derivative market structure and volumes.

    You will be right to say that at this point of time, no consultative process has been started at all on this. If any changes have to be made and asked to be done, certainly a consultative process will happen and the regulators will co-create a meaningful regulatory framework, good for all of us.

    How to verify

    risks_and_concerns[risk='Evolving regulatory landscape for derivatives']

    Risks & concerns

    3
    RiskSeverity

    Economic fragility impacting equity cash volumes

    Economic fragility impacted equity cash volumes this quarter, though derivatives market showed strength. — Management acknowledged

    medium

    Global macroeconomic volatility

    Volatile quarter marked by trade tariff stresses and conflicts in West Asia, and significant FII sell-off. — Management acknowledged

    low

    Evolving regulatory landscape for derivatives

    Regulatory process for derivatives is consultative and evolving, with potential for new regulations impacting market dynamics. — Both acknowledged

    medium

    Q&A highlights

    7

    “The contract size has gone up. When the contract size goes up, the value traded goes up. And in times of volatility, which we saw in the last quarter, as you would appreciate, because of multiple reasons, including global issues with regard to people fighting with each other, countries fighting, trade tariffs etc. So, because of the volatility, the premium traded when it goes up, that is one thing, where the revenue goes up. When the contracts continue to grow, but the contracts are of larger size, so larger volume processed with lesser cost and larger revenue because of increased premium, this results in clearing and settlement cost as a percentage of revenue coming down.”

    Analyst questioned the sequential decline in clearing and settlement costs despite stable contract numbers. Management clarified that increased contract size, higher premium due to volatility, and a shift from expiry-day to non-expiry day volumes led to lower costs relative to revenue.

    asked by Prayesh Jain

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY26 Financial Performance Highlights

    BSE reported its best-ever quarterly financial performance in Q1 FY26, achieving a topline of ₹1,045 crores for the first time. Consolidated operational revenues grew significantly by 59% YoY to ₹958 crores from ₹602 crores in the previous year. This strong revenue growth translated into a 104% YoY increase in net profit attributable to shareholders, reaching ₹539 crores from ₹265 crores. Operating EBITDA also saw substantial growth, rising to ₹626 crores from ₹282 crores, with margins expanding impressively to 65% from 47%.

    02

    Derivatives Market and Transaction Charges Growth

    The robust financial performance was primarily driven by the strength of BSE's derivatives market. Transaction charges, including equity cash, equity derivatives, mutual fund, and clearing house income, increased by 84% to ₹737 crores from ₹400 crores. The index derivatives segment achieved its highest-ever average daily premium turnover of ₹15,084 crores. Management noted that increased contract sizes, higher premiums due to market volatility🌐, and a shift from expiry-day to non-expiry day trading contributed to better revenue realization and optimized clearing and settlement costs.

    03

    SME Platform and Capital Formation Success

    BSE's SME platform continued its strong growth trajectory, crossing the landmark of 600 SME listings. July 2025 was a record-breaking month with 18 new listings, raising a total of ₹880 crores. Since its inception in March 2012, the platform has facilitated Indian entrepreneurs in raising ₹10,652 crores. The last 100 SMEs alone raised ₹4,071 crores, accounting for 38% of the total amount raised on this platform, demonstrating increasing investor confidence.

    04

    BSE StAR MF and Market Participation

    BSE StAR MF delivered another quarter of record revenues and performance, with revenues up 30% YoY to ₹61.2 crores. The platform processed 18.3 crore transactions in Q1 FY26, a 30% increase from 14.1 crore transactions in the previous year, averaging 6.1 crore transactions per month. Overall market participation also saw significant growth, with members increasing from 200 in Q1 FY24 to 528, registered UCCs growing from 1 lakh to 7.9 million, and FPIs rising from 10-15 to 330.

    05

    Regulatory Environment and Co-location Services

    Management discussed the evolving regulatory environment, noting that the process is consultative and co-created, with BSE participating to shape the atmosphere. Regarding co-location services, BSE has allotted 350 racks, with an estimated 75-80% utilization, and plans to add another 140 racks in two tranches, with the first expected within a month. The estimated revenue from co-location for Q1 FY26 is approximately ₹12 crores, based on annual charges of ₹12 lakh for a 6 kVA rack and ₹25 lakh for a 15 kVA rack.

    06

    Investor Awareness and Digital Initiatives

    BSE emphasized its commitment to empowering investors through education and awareness. In Q1 FY26, BSE IPF conducted around 1,026 investor awareness programs. The company also introduced the Nivesh Mitra mobile app, an educational offering designed to help users learn about trading, DMAT accounts, risk profiling, and simulated investments, reinforcing its efforts to promote financial literacy and protect investor interests.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.