BSE Limited — Q2 FY26 earnings call

Call held 11 Nov 2025

Management summary

BSE delivered another record-breaking quarter despite challenging global environment, demonstrating resilience through strong domestic investor participation and continued market share gains in derivatives. The SME platform momentum accelerated with record fund raising, while the exchange maintained leadership in capital formation amid FII selling pressure.

Highlights

  • 10th consecutive quarter of record revenue with Rs. 1,139 crores (40% YoY growth)

  • Operating EBITDA increased to Rs. 680 crores with margins expanding to 64% from 52%

  • Net profit grew 61% to Rs. 558 crores from Rs. 346 crores

  • SME platform achieved 657 listings with Rs. 13,083 crores raised, record October with 27 companies

  • Transaction charges increased 57% to Rs. 794 crores driven by derivatives growth

  • Total investor accounts crossed 23 crores with 10 states having over 1 crore investors each

  • Index business AUM reached Rs. 2.54 lakh crores across passive products

  • Domestic institutional investors infused Rs. 6.3 lakh crores countering FII outflows of Rs. 2.5 lakh crores

Key financials

  1. Total Revenue ₹1,139 Cr +40%YoY
  2. Operational Revenue ₹1,068 Cr +44%YoY
  3. Transaction Charges ₹794 Cr +57%YoY
  4. Operating EBITDA ₹680 Cr +75%YoY
  5. Net Profit ₹558 Cr +61%YoY
  6. Operating Expenses ₹410 Cr +7%YoY
  7. Other Operating Income ₹93 Cr +82%YoY

What they filed

Q1 FY27: revenue up 63.5%, net profit up 62.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue813 768 847 958 1,068 +31%1,244 +62%1,564 +85%1,566 +63%
EBITDA456 236 484 625 680 +49%732 +210%1,041 +115%1,046 +67%
Net profit346 219 494 538 557 +61%597 +173%795 +61%873 +62%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Core SGF Policy

  • SGF Contribution Core SGF Policy · Ongoing · High confidence 5% of transaction revenue monthly until 150% of minimum requirement
    BSE has decided to make voluntary core SGF contributions in line with the revenue as long as overall SGF is not exceeding 150% of the minimum requirement

    — S. Ramamurthy

Market Strategy

  • Market Participation Market Strategy · Medium-term · Medium confidence Increase institutional participation in derivatives, monthly options, and index futures
    We are planning to add more institutional participants... efforts are on for us to bring in more institutional participants who can help in building even more the growth trend

    — S. Ramamurthy

Business Focus

  • Strategic Objectives Business Focus · Long-term · High confidence Deepening and broadening of markets
    Our intention and our work continues to be in deepening and broadening of markets

    — S. Ramamurthy

Risks & concerns

  • FII Selling Pressure

    medium

    FIIs sold Rs. 2.5 lakh crores in 2025 vs Rs. 3 lakh crores entire previous year, but DIIs infused Rs. 6.3 lakh crores

    Well-cushioned by domestic flows

  • Volatility Impact on Margins

    medium

    Premium realization affected by volatility changes, compressing margins in Q2 vs Q1 due to subdued volatility

    Accepted as uncontrollable

  • Global Economic Headwinds

    medium

    Challenging global economic and geopolitical environment, elevated US tariffs, but Indian economy showing resilient growth

    Mitigated by domestic resilience

  • Treasury Income Decline

    low

    32% decrease in treasury income to Rs. 42 crores from Rs. 63 crores, but overall revenue growth strong

    Offset by other revenue growth

Q&A highlights

3 direct
Market Share and Institutional Participation Direct
our market share is 100% because our product is unique... We have been taking multiple steps in including more number of participants, more number of members, and more FPIs

Clarifies unique positioning in derivatives and ongoing efforts to expand institutional participation base

Asked by Amit Chandra - HDFC Securities

Premium vs Notional Margin Dynamics Direct
The premium that is received is a function of multiple things, including volatility... These events, being uncontrollable and unpredictable, no future trend in this regard could be predicted

Explains margin compression due to volatility changes and acknowledges unpredictability of this factor

Asked by Amit Chandra - HDFC Securities

Core SGF Contribution Policy Direct
some minimum amount on a quarterly basis out of our revenue should be contributed to the SGF... to put a cap, the 150% requirement has been put in place

Detailed explanation of SGF contribution smoothing mechanism to avoid sudden quarterly impact

Asked by Bhavya Sanghvi - Alchemy Capital

1 min read 5 chapters

Detailed narrative

Record Financial Performance and Market Leadership

BSE achieved its 10th consecutive quarter of record revenue at Rs. 1,139 crores (40% YoY growth), surpassing previous record of Rs. 1,045 crores. Operating EBITDA margins expanded significantly to 64% from 52%, while net profit grew 61% to Rs. 558 crores. Transaction charges increased 57% to Rs. 794 crores, primarily driven by robust derivatives trading activity.

Domestic Capital Market Resilience

Despite FII selling of Rs. 2.5 lakh crores in 2025 (vs Rs. 3 lakh crores entire previous year), domestic institutional investors provided strong counterbalance by infusing Rs. 6.3 lakh crores. SIP inflows reached all-time high of Rs. 29,529 crores in October 2025, with equity mutual fund inflows of Rs. 24,691 crores, demonstrating unwavering retail investor confidence.

SME Platform Accelerating Growth

SME platform continued strong momentum with 657 companies listed collectively raising Rs. 13,083 crores. October 2025 was record month with 27 companies listed raising Rs. 1,056 crores. Platform supports entrepreneurial landscape and contributes to Viksit Bharat vision through productive capital channelization into infrastructure development and employment generation.

Index Business and Product Innovation

Index business accumulated Rs. 2.54 lakh crores in AUM across passive products tracking BSE indices. Actively expanding customer base to insurance companies, market-linked debenture issuers, and foreign clients. Strong client adoption and product innovation driving rapid growth in this segment.

Risk Management and Financial Prudence

Implemented 5% monthly SGF contribution policy from transaction revenue with 150% cap to smoothen quarterly earnings impact and ensure financial prudence. Core SGF stood at Rs. 1,159 crores as of October 2025. This proactive approach addresses unpredictable SGF requirement fluctuations while maintaining adequate risk coverage.

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