Shares of BSE Ltd. rose as much as 10% on the National Stock Exchange to a 52-week high after the company reported a near five times on-year increase in the consolidated net profit for the March quarter. The listed stock exchange’s consolidated revenue for the last quarter of FY25 rose 75% on year.
The company’s investment income also soared near 28% on year to Rs 70.33 crore. The board declared a total dividend of Rs 23 per share. This includes a special dividend of Rs 5 and a normal dividend of Rs 18. Sequentially, BSE consolidated net profit as more than doubled, while its revenue rose over 10%.
Future and Options regulations have been beneficial for BSE with respect to a rise in non-expiry trading activity, leading to improvement in premium turnover, Motilal Oswal said in a report. “Decline in notional turnover boosted the profitability with lower regulatory costs.” The brokerage further said that the rise in member participation, collocation monetisation and sustained momentum in premium turnover will be key growth drivers for the company.
Motilal Oswal reiterated its ‘buy’ call on the stock as it raised its earnings estimates by 9% and 13% for FY26 and FY27, respectively. The brokerage has pegged Rs 7,600 as the target price for the stock.
BSE reversed Settlement Guarantee Fund provision of Rs 109 crore in the March quarter on SEBI's approval for a one-time transfer of SGF from currency segment to the derivatives segment, but had to pay almost Rs 37 crore to SGF.
Excluding the SGF reversal the net profit would have risen nearly four times on year. “Future trajectory for contribution to NCL is difficult to predict as the SGF contribution is a complex calculation and does not have a linear correlation with volumes,” the company’s management said.
Nuvama Institutional Equities expects much stronger volumes in FY26-FY27. The brokerage raised the target price of the stock to Rs 7,200 from Rs 6,730, while keeping the ‘buy’ rating unchanged.
