BSE - BSE

📊 NSE: BSE 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 19:59

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue reached a record INR 1,139.5 Cr in Q2 FY26, up 40% YoY. Transaction charges grew 57% YoY to INR 794 Cr. Services to Corporates increased 16% YoY to INR 138.5 Cr. Other Operating Income (co-location, index services) surged 82% YoY to INR 93.2 Cr. Treasury income from clearing/settlement funds declined 32% YoY to INR 42.8 Cr.

Geographic Revenue Split

Primarily India-based operations; however, the company is expanding via India International Exchange (IFSC) Limited (62.87% stake) and India International Bullion Holding (10% stake) to capture global capital flows. Specific regional % splits are not disclosed.

Profitability Margins

Net Profit Margin for continuing operations stood at 49% in Q2 FY26 compared to 42% in Q2 FY25. Consolidated Net Margin for H1 FY26 was 50%. The improvement is driven by operating leverage as revenue grew 40% while operating expenses increased only 7%.

EBITDA Margin

Operating EBITDA margin (including Core SGF contribution) expanded to 64% in Q2 FY26 from 52% in Q2 FY25. Operating EBITDA reached INR 680.3 Cr, driven by high-margin derivative volumes and revised co-location pricing.

Capital Expenditure

Not disclosed as a single aggregate figure, but the company highlighted ongoing investments in data centers, enhanced connectivity operations, and scaling trade capacity (Equity: 2 Cr to 10 Cr trades/day; Derivatives: 4 Cr to 9 Cr trades/day).

Credit Rating & Borrowing

Subsidiary ICCL maintains AAA credit ratings from India Ratings and Care Ratings. Specific borrowing costs are not applicable as the company is net cash positive with investment income of INR 65.7 Cr in Q2 FY26.

⚙️ Operational Drivers

Raw Materials

Technology infrastructure and regulatory costs. Regulatory fees and clearing/settlement expenses represent 51% of total operating expenses.

Import Sources

Not applicable for an exchange; however, technology hardware and software licenses are sourced globally to maintain a 6-microsecond trading speed.

Key Suppliers

Not specifically named, but includes technology vendors for data center management and connectivity, and SEBI for regulatory oversight.

Capacity Expansion

Daily trade capacity scaled significantly: Equity capacity increased from 2 Cr to 10 Cr trades; Derivatives capacity increased from 4 Cr to 9 Cr trades. Throttled message charges were revised effective July 1, 2025, to optimize throughput.

Raw Material Costs

Operating expenses were INR 410 Cr in Q2 FY26, a 7% YoY increase. Regulatory and clearing costs are the primary drivers, directly correlated to transaction volumes.

Manufacturing Efficiency

Trades per second per member improved 9x (from 3,000 to 27,000), enabling faster trade processing and higher volume handling.

Logistics & Distribution

Not applicable; digital distribution via 81,805 Mutual Fund Distributors and 1,256 registered members.

📈 Strategic Growth

Expected Growth Rate

40%

Growth Strategy

Expansion of the derivatives segment (average daily premium turnover >INR 15,000 Cr), scaling the StAR MF platform (24% transaction growth), and increasing co-location revenue (up 70% QoQ to INR 46 Cr). Growth is also supported by the SME platform which listed 657 companies and the successful implementation of common contract notes to attract FII/DII participation.

Products & Services

Equity cash trading, equity derivatives, mutual fund distribution (StAR MF), SME listing services, index services, co-location services, and debt/bond platforms.

Brand Portfolio

BSE, BSE StAR MF, India INX, ICCL (Indian Clearing Corporation Limited), BSE SME, BSE Index Services.

New Products/Services

Launch of two new debt indices and expansion into the Social Stock Exchange. Expected revenue contribution from new co-location pricing and data dissemination fees (currently 4-5% of revenue vs 10-25% globally).

Market Expansion

Focus on GIFT City via India INX and expansion of the passive product suite which has INR 2.54 lakh Cr in AUM as of Sept 2025.

Market Share & Ranking

Leading venue for SME listings; maintaining a strong position in equity cash and rapidly growing share in index derivatives.

Strategic Alliances

Joint ventures and stakes in ONDC (4.63%), Hindustan Power Exchange (22.62%), and EBIX Insurance Broking (40%).

🌍 External Factors

Industry Trends

Shift toward passive investing (INR 2.54 lakh Cr AUM) and digital mutual fund distribution. The industry is evolving toward multi-venue trading and smart order routing, where BSE is gaining share among DIIs and FIIs.

Competitive Landscape

Competes with NSE, MCX, and MSEI. Competitive advantage gained through the common contract note effective June 2025.

Competitive Moat

Network effects from 223 million registered investors, 150-year brand legacy, and high switching costs for clearing members. Sustainable due to regulatory licenses and the 'fastest exchange' technological edge.

Macro Economic Sensitivity

Highly sensitive to capital market activity and retail participation; SIP inflows reached a record INR 29,529 Cr in Oct 2025, supporting platform volumes.

Consumer Behavior

Increasing retail 'financialization' of savings, evidenced by 383.9 million mutual fund orders in H1 FY26.

Geopolitical Risks

Global geopolitical landscape impacts FII flows and IPO pipeline vibrancy, though BSE saw 97 new listings in Q2 FY26 raising INR 53,548 Cr.

⚖️ Regulatory & Governance

Industry Regulations

Subject to SEBI stress test requirements for SGF. Compliance with ISO 22301 (Business Continuity) and ISO 27001 (Information Security).

Environmental Compliance

Managed through BSE CSR Integrated Foundation (100% subsidiary); specific ESG costs not disclosed.

Taxation Policy Impact

Effective tax rate not explicitly detailed, but net profit of INR 558 Cr is reported after all statutory dues.

Legal Contingencies

Not disclosed in the provided financial summaries; focus remains on listing compliance and investor protection via #SEBIvsScam initiatives.

⚠️ Risk Analysis

Key Uncertainties

Market volatility impacting transaction volumes (70% revenue risk). Sudden spikes in SGF requirements due to SEBI stress tests could impact quarterly profits.