BSE

BSE achieved a landmark financial year in FY26, with total revenues crossing Rs. 5,000 crores for the first time, reaching Rs. 5,148 crores, representing a 59% year-on-year growth. Operational revenues also saw a significant increase of 63% to Rs. 4,834 crores. This robust top-line growth translated into substantial profitability improvements, with operating EBITDA more than doubling to Rs. 3,079 crores and margins expanding to 64% from 51%. Net profit attributable to shareholders grew by 88% to Rs. 2,497 crores, with profit margins reaching 49%.

The derivatives market was a key growth driver, with the BSE index derivatives segment recording an average daily premium turnover (ADPTV) of Rs. 19,523 crores in FY26, an impressive 118% year-on-year increase. BSE also demonstrated strong leadership in the IPO market, ranking first globally for listings in FY26, welcoming 255 new listings across main board and SME markets and raising Rs. 1.8 lakh crores. The IPO pipeline remains robust with over 250 active applications to raise Rs. 1.75 lakh crores.

BSE's total investor accounts surpassed 25 crores, with 3.53 crores new investor accounts added in the past year, indicating deepening retail participation. The BSE STAR MF platform continued its strong performance, with revenues increasing 24% year-on-year to Rs. 285 crores and total transactions growing 27% to 84 crores. A significant step towards financial inclusion was the partnership with the Department of Post, onboarding them as a member on BSE STAR MF, with Dak Sevaks executing over 1,500 transactions to date. The launch of StAR NPS further aims to simplify retirement planning for millions of Indians.

Management highlighted that the company's cash is being strategically utilized for growth and shareholder value enhancement. In the last two years, Rs. 500 crores were invested as gross block for capacity increase. The FY26 technology budget of Rs. 300 crores is expected to potentially double due to rising hardware costs. The Board recommended a final dividend of Rs. 10 per equity share for FY26, totaling Rs. 412 crores, representing a 67% increase excluding the prior year's special dividend. This reflects a shift from historical high payout ratios to retaining capital for growth initiatives.

Despite overall growth, BSE's market share in the cash segment remains at 7-8%, below the desired double-digit. Management attributed this partly to pending Smart Order Routing (SOR) applications at the competing exchange, which hinder clients from accessing best prices on BSE. Additionally, the Sensex premium to notional ratio is lower compared to comparable indices, primarily due to the nascent stage of its monthly contracts, as the Sensex product is only three years old compared to 26-year-old competitors.

BSE is focused on deepening its market participation, aiming for 700 broker members (up from 587) and 800 FPAs (up from 520). The company targets increasing FPI participation to 9% of total volumes from the current 5-6%. Management also expressed a strong intent to explore commodity derivatives, aiming to develop a unique value proposition and engage with regulators 'very soon' to advance this agenda. The launch of new monthly index derivatives like BSE Focused IT, Focused MidCap, and Sensex Next 30 is expected to further expand product offerings.