BSE Limited

BSE reported its highest-ever quarterly revenues on a consolidated basis, reaching ₹835.4 crores, a 94% increase year-on-year. Operational revenues also saw a significant jump of 108% to ₹773.5 crores from ₹371.5 crores in the previous year. This strong revenue growth translated into a 103% increase in net profit attributable to shareholders, which stood at ₹219.7 crores, up from ₹108.2 crores. The operating EBITDA expanded to ₹236.5 crores, with margins improving to 31% from 25% in the corresponding quarter last year.

Operating expenses for the quarter grew by 86% to ₹567 crores, primarily due to a higher contribution to the core Settlement Guarantee Fund (SGF) amounting to ₹199 crores. This increase, accounting for 35% of total operating expenses, is a direct result of a new SEBI circular dated October 3, 2024, which introduced a new methodology for computing the Minimum Required Corpus (MRC) for the Equity Derivatives segment. The net core SGF requirement for the quarter was ₹199 crores, with ₹147 crores contributed by ICCL and ₹53 crores by BSE, facilitated by a one-time^📎 inter-segment fund transfer.

The BSE Derivatives segment recorded its highest-ever average daily premium turnover of ₹8,758 crores for the quarter. However, following regulatory changes, Bankex volumes significantly declined by approximately 95%, while Sensex notional volumes marginally fell. Despite this, premium volumes remained stable and showed an increasing tendency on non-expiry days. BSE is committed to rebuilding liquidity in its Bankex contracts and continues to upgrade its trading systems to enhance efficiency and risk management capabilities.

BSE StAR MF delivered another quarter of record performance, with revenues growing 92% year-on-year to ₹63.5 crores. The platform processed a total of 17.99 crores transactions in Q3 FY25, a 39% increase from 10.99 crores in the prior year. On average, the platform processed 5.37 crores transactions per month in the current financial year, compared to 3.21 crores last year, with a new high of 6.15 crores transactions in December 2024. BSE continues to invest in StAR MF for scalability and functionality improvements.

BSE platforms remained a preferred choice for Indian companies to raise capital, facilitating ₹20.9 lakh crores through various instruments. In Q3 FY25, BSE welcomed 30 new listings, raising a record ₹95,512 crores, which is a 261% increase year-on-year. The IPO market remains healthy with 108 active applications, indicating a strong pipeline for future listings. BSE continues to promote high standards of corporate governance and disclosure practices among listed issuers.

The company acknowledged the ongoing discussion around the potential demerger of clearing corporations, noting that regulators aim for independent entities with diversified shareholding to prevent monopoly and concentration risks. While the impact on BSE's revenue stream is uncertain, management views it as an early-stage process. Delays in the implementation of the common contract note, now extended to March, continue to affect efforts to improve market share in the equity cash segment, which management believes is crucial for a level playing field.

BSE is actively working on providing additional colocation space to address a significant waiting list, currently having around 200-220 racks. While rack rent is being monetized, charges for order flow are minimal, with plans to increase them when the market is ready. Asia Index Private Limited (AIPL) launched 15 new indices in the current financial year and plans to launch more before year-end. India INX, BSE's subsidiary at GIFT City, expanded its product offerings with the launch of Sensex derivatives contracts on February 3, 2025, aiming to attract international investors.