BSE Q1 FY27 earnings call

Indian capital markets demonstrated exceptional resilience in Q1 FY27, with the benchmark Sensex recovering robustly despite global uncertainties. This positive momentum is underpinned by strong domestic fundamentals, vibrant economic activity, and encouraging corporate earnings. Domestic institutions played a crucial role, deploying a historic ₹5 lakh crores, effectively countering foreign outflows of ₹3.6 lakh crores during the first seven months of 2026, highlighting the market's increasing self-sustainability.

BSE achieved its best quarterly results on record, marking the 14th consecutive quarter of record revenues. Consolidated revenues reached ₹1,707 crores, surpassing the previous quarter's record of ₹1,630 crores. Operational revenues grew by 63% YoY to ₹1,566 crores from ₹958 crores, primarily driven by an 80% increase in transaction charges to ₹1,328 crores. Operating EBITDA, including Core SGF, increased by 67% YoY to ₹1,046 crores, with margins expanding to 67% from 65%. Net profit attributable to shareholders surged 62% YoY to ₹873 crores, resulting in a net profit margin of 51%.

The total number of investor accounts registered on BSE reached an impressive 25.8 crores, reflecting a steady expansion of retail participation. Over the past year, 3.5 crores new investor accounts were added, with 11 states each contributing over 1 crore investors. BSE conducted 23 investor awareness programs during Q1 FY27, reaching over 4,900 participants, underscoring its commitment to financial literacy and informed investment decisions.

While mainboard IPO activity saw a moderation in H1 FY27, signs of recovery emerged in July 2026 with 13 mainboard IPOs raising ₹18,348 crores. The mainboard IPO pipeline remains strong, with over 250 companies targeting ₹1.75 lakh crores in fundraising. The SME segment remained vibrant, with BSE SME surpassing 750 listed companies in July 2026, up from 600 a year earlier. These 150 new listings alone raised ₹6,323 crores, contributing significantly to cumulative capital raised on the platform.

BSE witnessed strong momentum in both its cash and derivatives markets. The equity cash segment recorded its highest-ever quarterly average daily turnover of ₹9,955 crores in Q1 FY27. The derivatives segment achieved an all-time high average daily premium turnover of ₹29,615 crores, representing a 96% YoY growth. The successful launch of derivatives on the BSE Focused IT Index, the first of its kind in India, has resonated well with market participants, completing three expiry cycles and gaining momentum.

BSE's co-location business continued to perform well, generating ₹51 crores in Q1 FY27, with plans for further infrastructure expansion. The mutual fund distribution platform, BSE Star MF, processed ₹23.4 crores in transactions, a healthy 28% YoY increase. The Star NPS platform by BSE Technologies saw its revenues grow 20% YoY to ₹73.3 crores. Additionally, starting January 1, 2027, BSE will directly manage the distribution and licensing of its market data worldwide, concluding its 13-year partnership with Deutsche Börse.

Management noted that the STT hike and RBI circular, effective April 1st and July 1st respectively, have impacted overall market volumes, particularly in futures and options. However, the full effect of the RBI circular is still unfolding as bank guarantees mature. Regarding financial line items, technology expenses increased due to system modernization and higher transaction volumes (from ₹10 crores to ₹1800 crores daily processing). Other income saw a significant pickup due to the reversal of mark-to-market losses on bond investments from the previous quarter, while depreciation decreased due to the annual WDV reset.