BSE LimitedNSE: BSE · Exchange operator (formerly Bombay Stock Exchange)
CMPRs 3,313
Mkt CapRs 1,35,144 cr
P/E TTM47.7x
VerdictTRACK

BSE Limited NSE: BSE · India · Rs crore

The stock-exchange operator (Asia's oldest exchange, est. 1875), itself listed only on NSE. Not the Sensex index; not companies listed on BSE. Data as of 9 Oct 2026; latest results FY26 (audited, 7 May 2026) and Q1 FY27 (unaudited, 4 Aug 2026). Q2 FY27 not yet reported.

FY26 Revenue from ops
Rs 4,834 cr
+63% YoY; total income Rs 5,148 cr; Screener "sales" Rs 5,124 cr
FY26 PAT (reported)
Rs 2,487 cr
+88%; attributable Rs 2,497 cr; continuing ops Rs 2,475.5 cr
FY26 Op. EBITDA margin
64%
Company def. incl. Core SGF (Rs 3,079 cr); Screener OPM 67.9%
RoE / RoCE
46% / 60%
Screener TTM; StockAnalysis RoE 36% (net-worth basis differs)

Quick Verdict Scorecard

Business
Strong
regulation-dependent
Management
Strong
CEO succession by Jan-28
Financial
Strong
debt-free, 46% RoE
Valuation
Expensive
47.7x TTM / 43x FY27E
Overall
TRACK
Neutral

Market data

ItemValue
CMP (9 Oct 2026, Screener)Rs 3,313 (prints Rs 3,310-3,318 across sources)
Market capRs 1,35,144 cr (40.79 cr shares) ~US$14 bn (at Rs 96.6/US$, 9 Oct 2026)
52-week highRs 4,446.80 (27 May 2026, record)
52-week lowRs 2,326 (Screener, trailing window). Earlier low Rs 2,021.50 (26 Sep 2025) has rolled out of the window; one aggregator print shows Rs 2,210 [unverified]
From high / from low-25.5% / +42%
P/E TTM (EPS Rs 69.55)47.7x (StockAnalysis 48.5x)
P/E FY26 company EPS Rs 60.6154.7x
Forward P/E FY27E / FY28E (consensus EPS Rs 76.98 / 88.83)43.0x / 37.3x
P/B20.2x (Screener BV Rs 164) / 16.9x (StockAnalysis BV ~Rs 194)
EV / EV/EBITDA (TTM)~Rs 1,29,640 cr / ~37x
Dividend yield (FY26 DPS Rs 10)0.30%
ListedNSE only, 3 Feb 2017 (100% OFS IPO)
Index membershipNifty 50 from 30 Sep 2026 (replaced Wipro); FTSE Russell eligible (Aug 2026)
Street consensus (19 analysts)"Buy" 10/5/4; mean TP Rs 3,704 (+12%)

Company overview

ItemDetail
HQ / Regd officeP.J. Towers, Dalal Street, Fort, Mumbai 400001. CIN L67120MH2005PLC155188
Founded9 Jul 1875; demutualised and corporatised 19 May 2007
Employees850 permanent (standalone, 31 Mar 2026, FY26 AR)
PromoterNone - widely held, professionally managed SEBI-regulated MII. Pledge: N/A
Largest holderLIC 5.57% (insurer 15% cap under SECC); Vanguard PAC 2.16%
Chair / MD & CEOProf. Subhasis Chaudhuri (PID, from 21 Nov 2024) / Sundararaman Ramamurthy (from 4 Jan 2023)
CFODeepak Goel (from 11 Sep 2023)
SectorCapital-market infrastructure: exchange, clearing (BSE Clearing / ICCL), index (BSE Index Services), MF rails (StAR MF), GIFT City (India INX/ICC); 15% of CDSL
AuditorS.R. Batliboi & Co. LLP (rotating to KKC & Associates LLP; board-proposed 4 Aug 2026 for a term from the 22nd AGM (2027), shareholder approval pending)
Credit ratingBSE Ltd: Not Applicable (no rated debt). ICCL: CARE AAA; Stable (7 Feb 2025)
DebtNil

What BSE is, in plain English

BSE runs India's second stock exchange. Until 2023 it was a cash-equities and mutual-fund-platform utility with under 1% of derivatives. After relaunching SENSEX and BANKEX options in May 2023 with smaller lots and a non-clashing expiry day, it became India's #2 equity-options venue. Its share of options premium went from ~3% (FY24) to ~25.3% (FY26) and ~31.5% (Q1 FY27) [Est., derived from NSE RHP]. BSE charges a fee on options premium turnover, so equity derivatives (essentially one product, the SENSEX weekly option expiring Thursday) now make up ~74% of consolidated revenue from operations (Q1 FY27: Rs 1,155 cr of Rs 1,566 cr) [Est.]. It also earns listing fees from 5,600+ companies and 750+ SME issuers, StAR MF order fees (>85% share of exchange MF platforms), colocation, data and index licensing, and treasury income on clearing funds. It has no debt, 14 straight quarters of record revenue, and earnings that depend heavily on SEBI, RBI and Finance Ministry decisions.

Q1 FY27 snapshot (Jun-26 quarter)

MetricQ1 FY27Q1 FY26YoYQ4 FY26QoQ
Revenue from operations1,566.1958.0+63.5%1,563.5+0.1%
Total income1,706.71,044.5+63.4%1,630+4.7%
Transaction charges1,327.7737.5+80%1,311+1%
Operating EBITDA (incl. Core SGF)1,046.0 (67%)625 (65%)+67%1,040.7 (67%)+0.5%
PAT attributable874.0539.4+62%797.3+9.6%
Premium ADPT (Rs cr/day)29,61515,004.5+97%~28,921 (unverified)~+2.4%
Cash ADTV (Rs cr/day)9,9557,180+39%--

Data reconciliation register (contested figures shown, not silently resolved)

ItemValue AValue B / CTreatment in this report
FY26 EPSRs 60.61 company, on 411.98 mn issued shares (incl. demutualisation abeyance shares)Rs 61.22 Screener, on 407.88 mn outstandingBoth shown; P/E on TTM Screener basis; company EPS for FY26 P/E
FY26 PATRs 2,487.25 cr reportedRs 2,496.98 cr attributable; Rs 2,475.5 cr continuing opsLabelled each time
Cumulative buybacksRs 653.5 cr (FY18, FY19, FY20, FY24; investor deck)~Rs 640 cr (Rs 166 cr + Rs 460 cr + ~Rs 9-14 cr)Unresolved discrepancy - definitions may differ (e.g. buyback tax)
FY26 net worthRs 6,673 cr (Screener)Rs 8,042 cr + Rs 122 cr MI (StockAnalysis)Gap ~Rs 1,250-1,370 cr; likely Core SGF / earmarked reserve classification. RoE and P/B are source-dependent
Revenue basisRev. from ops Rs 4,834 crScreener sales Rs 5,124 cr (incl. investment income ~Rs 290 cr); total income Rs 5,148 crLabelled
FY26 EBITDARs 3,079 cr (64%), company, incl. SGFScreener Rs 3,480 cr (67.9%); press "Rs 3,393 cr / 48%"Press figure dropped (does not reconcile)
Derivatives share of revenue~74% (Q1 FY27, consolidated rev. from ops) [Est.]65% (FY26 consolidated); 70% (FY26 standalone)Denominator labelled each time
StAR MF share89% (FY25)>85% among exchange platforms (FY26 AR); 87.4% (Q3 FY26)Dated each time
Q1 FY27 book-building incomeRs 10.1 crRs 12.4 cr (other write-up)Shown as conflicting
SGF step-down base"5% of transaction-related revenue" (Q2 FY26 call)"5% of profits" (Q4 FY26 call); cut to 3.5%Base unclear; flagged
52-week lowRs 2,326 (Screener)Rs 2,021.50 (26 Sep 2025, outside window); Rs 2,210 (one aggregator print, unverified)Rs 2,326 used

Data freshness: prices 9 Oct 2026 close; shareholding Jun-26 (Sep-26 pattern not filed as of 9 Oct; due ~21 Oct); financials Q1 FY27.

Analyst Notes

One-line thesis [Analyst View]: BSE is now a high-quality, debt-free, 64-67%-margin options franchise. But its growth engine has stalled sequentially, and that engine is set by regulators, not by the company. At 47.7x TTM and 43x FY27E, the stock prices in more share gains than the latest data shows. TRACK, do not ENGAGE yet.
Update to 9 Oct 2026 (news sweep): Nuvama (6 Oct preview) puts Q2 FY27 index-options ADPT at ~Rs 22,500 cr/day (-23.9% QoQ) [broker estimate], below the Rs 25,000 cr/day test this report sets. Nuvama sees revenue ~Rs 1,430 cr (-8.5% QoQ) and adjusted PAT ~Rs 740 cr (-13.5% QoQ), which would be the first QoQ decline of the up-cycle. Pulling the other way, Reuters reported on 6 Oct that SEBI is likely to stop using the closing auction for derivatives settlement for at least a year (no circular yet). The stock rose 4.4% and 3.9% on 5-6 Oct (+8.5% in two sessions) to Rs 3,305. The trading window closed on 1 Oct; the Q2 board date had not been intimated as of 9 Oct. No change to the TRACK verdict: the weak Q2 estimate reinforces waiting for the print, and the CAS rollback is the main upside swing factor.

What happened. In three years BSE went from a sub-1% derivatives also-ran to roughly a third of Indian options premium. FY26 revenue from operations rose 63% to Rs 4,834 cr and attributable PAT 88% to Rs 2,497 cr. Equity-derivatives revenue went from about Rs 180 cr in FY24 to Rs 1,415 cr in FY25 and Rs 3,134 cr in FY26. Operating leverage was dramatic: company-defined operating EBITDA margin rose from 51% to 64%, and RoE reached ~45%. The three listed exchanges' revenue pool grew ~11% in FY26 while NSE's income fell 2.4%, so BSE took almost all of the incremental equity fee growth.

What changed in Q1 FY27. It was the 14th straight record quarter, but the first in this up-cycle where revenue from operations (+0.1% QoQ) and transaction charges (+1% QoQ) did not grow. The 10% QoQ PAT rise came below the operating line: investment income nearly doubled on a bond mark-to-market reversal (Rs 135 cr vs ~Rs 67 cr), and Q4's ~Rs 40 cr ECL provision on an old Rs 80 cr NSE receivable at ICCL did not recur. Monthly premium turnover peaked in April 2026. July averaged ~Rs 25,401 cr/day (~15% below the Q1 average), and August options ADTO fell 12% MoM after the Closing Auction Session (CAS) started on 3 Aug. In short, the slope has flattened [Analyst View].

Regulation sets the price, and five shocks hit in 12 months. These were the Budget STT hike (Apr-26), RBI bank-guarantee and prop-lending norms (1 Jul 2026, with legacy BGs still running off), CAS (3 Aug 2026), the SEBI settlement-price consultation (12 Sep 2026), and the still-live idea of moving weekly expiries to monthly (floated Sep-25). BSE's share is partly a regulatory gift (the Thursday expiry slot from 1 Sep 2025) and partly price (an implied yield of ~Rs 3,200 per crore of premium vs NSE's ~Rs 3,500). Domestic prop traders are ~50% of BSE notional, and SEBI's own data shows ~90% of individual F&O traders lose money. The social licence is thin. One offsetting positive: Reuters reports SEBI will likely suspend CAS for derivatives settlement and revert to a 30-minute VWAP for at least a year (reported again on 6 Oct; an end-Oct start cited in earlier coverage is unconfirmed). No circular has been issued yet.

What the market is pricing. The stock is down 25.5% from its Rs 4,446.80 peak (27 May 2026), more than the 5-17% EPS cuts across houses. Consensus expects EPS +27% in FY27E (Rs 76.98) and +15% in FY28E (Rs 88.83). At Rs 3,313 that is 43x and 37x. NSE listed on 24 Sep 2026 at a lower multiple (~42x FY26, ~35x annualised Q1), so BSE has lost its scarcity premium as the only listed Indian exchange. Street targets cluster at Rs 3,750-4,060 (~40x FY28-29E). The PL Rs 4,850 / Bernstein Rs 2,820 spread is 72%, which says the volume outlook is genuinely uncertain.

What tempers the bear case. The franchise beyond options is real and sticky, though small (~15-20% of revenue): listing (5,600+ companies, 750+ SME), StAR MF (234 m orders/qtr, +28%), index IP (SENSEX, 200+ indices, Rs 9.78 lakh cr tracked), colocation (Rs 51 cr/qtr, priced at ~20% of market for order flow), and data, which goes in-house from 1 Jan 2027 after 13 years with Deutsche Börse. The 15% CDSL stake (~Rs 3,940 cr) and ~Rs 5,500 cr of own net cash cover ~7% of market cap. Core SGF contributions step down from 5% to 3.5%. About 54% of opex is volume-linked, which cushions margins in a downturn. Domestic MFs (UTI, Nippon) took a Rs 1,678 cr block at Rs 3,200 on 29 Sep, and Nifty 50 inclusion brought ~US$660 m of passive demand.

What amplifies the bear case. Q1 FY27 margins are 66.8% vs NSE's 82.5%. BSE has a higher cost ratio and a lower price, and NSE can match the ~8-9% discount at will. There are recurring one-offs: Q3 FY26 labour-code (Rs 22 cr) and SGF (Rs 45.6 cr) charges plus an impairment, Q4 FY26's NSE ECL, and Q1 FY27's MTM gain. Core PAT is therefore noisier than the headline. Management's tone moved from celebratory (Q4) to guarded (Q1 FY27): it "does not track market share as a primary metric", "hard to isolate" regulatory effects, and declined to say whether costs are at a steady state. The CEO's term ends by Jan 2028 at the latest, and no extension filing exists.

How to read the rest of this report. Watch three things. (1) Q2 FY27 premium ADPT vs the ~Rs 25,000 cr/day threshold after CAS and RBI norms; Nuvama (6 Oct preview) puts Q2 FY27 index-options ADPT at ~Rs 22,500 cr/day (-23.9% QoQ) [broker estimate], below it. (2) Monthly premium share (~31.5% in Q1 FY27) for signs of a plateau. (3) Any SEBI paper on expiry frequency. The financial quality is not in doubt. The open question is the durability of a regulator-allocated revenue stream at ~43x forward [Analyst View].

Business Deep-Dive

BSE is a vertically integrated market-infrastructure institution (MII). It does trading (BOLT Plus, ~6 microsecond claimed response), clearing (BSE Clearing, formerly ICCL, CCP since Feb 2012), index provision (BSE Index Services, wholly owned since 1 Jun 2024), MF distribution rails (StAR MF, a business line inside BSE Ltd and not a separate entity), listing, and GIFT City venues (India INX, India ICC). It also holds 15% of CDSL. History: founded 9 Jul 1875; demutualised 19 May 2007; listed on NSE 3 Feb 2017. Member of the World Federation of Exchanges. Head of IR: Anand Sethuraman.

3.1 Equity derivatives (SENSEX, BANKEX, sectoral F&O)

ItemDetail
ProductsSENSEX weekly options (flagship, Thursday expiry for contracts expiring on or after 1 Sep 2025); BANKEX monthly; BSE Focused IT Index derivatives (launched 11 May 2026, India's first sector-index derivative; three expiries by early Aug-26); two more indices approved; 16 new indices created
HistoryRelaunched May 2023 with smaller lots; BANKEX expiry to Monday Aug 2023; pre-relaunch F&O share <1%. Earlier pushes (~2010-11, 2015-16) failed. Bankex and Sensex-50 weeklies discontinued from 14 Nov 2024 (SEBI one-weekly rule)
How BSE earnsTransaction fee on options premium turnover (both sides); futures on notional (BSE charges zero on futures)
Implied yield~Rs 6,400 per crore of premium (both sides) = ~Rs 3,200/side [Est.]: Rs 1,155 cr / (Rs 29,615 cr x ~61 days). FY26 cross-check ~Rs 6,470 [Est.]. Rate card ~Rs 3,250 vs NSE ~Rs 3,503
Q1 FY27 ADPTRs 29,615 cr (all-time high, +97% YoY from Rs 15,004.5 cr)
FY26 ADPT / revenueRs 19,523 cr vs Rs 8,978 cr (+117%) / Rs 3,134 cr vs Rs 1,415 cr (+121%)
Q3 FY26772 cr contracts, Rs 784 cr revenue; index-options ADPT Rs 19,459 cr
Participation~600-610 members (vs ~200 in Q1 FY24); 11.2 m UCCs (0.1 m Q1 FY24); ~650 FPIs (target 800); FPIs 100 to 520 in FY26
StrategyBuild non-current-week and monthly contracts to cut expiry-day dependence (5x contracts, 10x premium Jan-25 to Jul-26; ~5-6% of contracts)
PipelineMore index derivatives; commodity derivatives "once current offerings stabilise" (first gold/silver derivatives Oct 2018); no timeline

3.2 Equity cash market

MetricQ1 FY27Q1 FY26FY26FY25
ADTV (Rs cr)9,955 (record, +39%)7,1807,950 (+2.4%)7,766
Cash transaction charges (Rs cr)65.4 (+19%)54.8250.2 (-18%, standalone)303.6
- at normal rates44.632.4--
- at special (incentive) rates20.8 (~32%)---
Market share~7% [Est.] (NSE 93.05%)~6.2% [Est.]~7% (NSE 92.99%); mgmt 7-8%NSE 93.57%
Implied yield~Rs 1,080/cr ADTV [Est.]---

5,600+ listed stocks (5,647 per Wikipedia). Target: "meaningful double-digit" cash share by early CY2027, via the common contract note (live 27 Jun 2025, achieved "on paper") and best-price execution (pending). Tick sizes were cut for ~650 stocks, lifting share in those from <10% to ~12%.

3.3 Listing and primary-market services

ItemDetail
Q1 FY27 listing incomeRs 88.1 cr (+7%): annual listing fees Rs 63.0 cr; processing/other Rs 25.1 cr
Q1 FY27 book-buildingRs 10.1 cr (one source Rs 12.4 cr) vs Rs 19.0 cr [conflict]
Q4 FY26 listing servicesRs 119 cr (-5% YoY, -24% QoQ)
FY26 (AR)Listing fees Rs 388.7 cr (+10%); book-building software Rs 104.1 cr (+9%); other listing fees Rs 26.2 cr (-34%)
BSE SME750+ listings Q1 FY27 (600 a year earlier); ~700 and Rs 14,735 cr mobilised by Q3 FY26; 700th listing 1 Feb 2026; last 150 raised Rs 6,323 cr (~38% of cumulative)
Pipeline250+ companies seeking ~Rs 1.75 lakh cr; 13 mainboard IPOs raised Rs 18,348 cr in Jul-26; Rs 6.2 lakh cr raised via BSE platforms in Q1 FY27 (equity, debt, CPs, REITs/InvITs, municipal bonds)
Q1 FY27 industry IPOs47 mainboard raised Rs 13,900 cr (vs 9 raising Rs 10,900 cr); 24 SME raised Rs 900 cr
Q3 FY2699 new equity listings raised Rs 97,657 cr
NoteGarbled "1,771 IPOs" counts in secondary write-ups excluded. NSE itself listed on BSE (24 Sep 2026)

3.4 BSE StAR MF and StAR NPS

MetricQ1 FY27Q3 FY26FY26FY25FY24
Orders / transactions234.4 m (+28%)21.7 cr (+21%)84.1 cr (+27%)66.3 cr (+61%)41.1 cr
Revenue (Rs cr)73.3 (+20%)72.5 (+14%)285 (284.9 standalone, +24%)230.7 (+80%)~128 [Est.]
Order valueRs 2.96 lakh cr----
Share-87.4%>85% (exchange platforms, AR)89%-
Distributors / AMCs / schemes / cities84,150 / 50 / 15,504 / 721-83,280 / - / 15,268 / 721--

FY26: 4.74 cr new SIPs; 2,951 distributors added; 28.1 cr registered investors (293 m Q1 FY27). StAR NPS launched Apr 2026 (connecting CRAs and PFMs). Department of Posts MoU (signed 12 Dec 2025; reported Jan 2026) uses India Post as an MF distribution channel. Rivals: NSE NMF-II, MF Utilities (AMC-owned); share excludes MFU and AMC-direct.

3.5 Colocation and connectivity

PeriodRevenueRacks / pricing
Q4 FY25-~300 racks; 200 more in two tranches (~650 6-kVA equivalents)
Q1 FY26Rs 27 cr (CEO off-the-cuff ~Rs 12 cr)350 allotted, 75-80% used, ~140 more coming. Rent Rs 12 lakh/yr (6 kVA), ~Rs 25 lakh (15 kVA). Throttle: 40 MPS free from 30 Jun 2025, then Rs 50,000/yr per 100 MPS
Q2 FY26Rs 46 crThrottle charges revised from 1 Jul 2025
Q3 FY26Rs 48 cr"Add 20 racks by Q4 to reach 500" (HSIE) vs "500 plus 80" (forum) [conflict]
FY26Rs 171.1 cr (+130% vs Rs 74.3 cr); standalone Rs 169.0 cr vs Rs 72.6 cr300 to 500 racks
Q1 FY27Rs 51 cr (~Rs 204 cr annualised [Est.])500 racks, "sufficient for at least 1.5 years"; order-flow charging at ~20% of market rates, to be "reconsidered at the right time"; split rack vs order-flow not disclosed

3.6 Index, data, clearing, GIFT City

LineDetail
BSE Index Services (formerly Asia Index)Wholly owned from 1 Jun 2024 (bought S&P DJI's 50%; price not disclosed). 200+ indices, Rs 9.78 lakh cr AUM tracked; 103 passive products on 36 indices, Rs 2.6 lakh cr AUM (Rs 2.54 lakh cr Q2 FY26). Revenue ~2x post-acquisition. RBI-authorised Financial Benchmark Administrator. FY26 index services revenue Rs 36.6 cr (+52%)
Market data~4-5% of revenue vs 10-25% at developed-market exchanges. FY26 data services Rs 67.6 cr (+34%). 13-year Deutsche Börse marketing partnership ends 1 Jan 2027; in-house global distribution thereafter
Other operating incomeColo + data + index + subscription/software: Rs 349 cr FY26 vs Rs 220 cr (+59%); Q1 FY27 Rs 97.7 cr (+14%)
BSE Clearing (ICCL)CCP since Feb 2012; rebrand announced on Q1 FY27 call; FY26 AR (signed 7 May 2026) still names "Indian Clearing Corporation Limited". TPS per member per client 3,000 to 27,000 (9x); equity trades 2 cr to 10 cr/day; derivatives 4 cr to 9 cr/day; risk-system upgrade in progress. Jun-26 equity turnover Rs 4,027 bn; derivatives peak Rs 5,676 bn (Feb-26); 1.36 bn contracts settled Jun-26. Q3 FY26 settled Rs 8.14 lakh cr equity and Rs 12.57 lakh cr premium (364 cr contracts). ~8.8% of equity-derivatives cleared value (NSE Clearing 91.2%)
Treasury on clearing fundsFY26 Rs 171.4 cr (-21%); Q4 FY26 Rs 40 cr (-9% YoY); Q1 FY27 Rs 40.0 cr (-12% YoY)
India INX (GIFT City)India's first international exchange (30 Dec 2016). SENSEX F&O from 3 Feb 2025; Jun-26 US$1,229 m (16,187 contracts). India INX Global Access routes to 135+ global exchanges: 56,381 trades, US$584 m (Jun-26). Loss-making

3.7 Subsidiaries (FY26 AR, Form AOC-1; Rs cr)

EntityFY26 turnoverFY26 PATBSE holdingNote
Indian Clearing Corp (BSE Clearing)424.6169.8100%Net worth ~Rs 828.6 cr (capital 354 + reserves 474.6); total assets Rs 5,674 cr; CARE AAA
BSE Technologies Pvt Ltd82.316.2100%Absorbed BSE Investments and BSE Administration & Supervision w.e.f. 23 Apr 2026
India International Exchange (IFSC)2.3-25.865.27%Reserves -Rs 205.9 cr on capital Rs 320.5 cr; BSE invested Rs 41.28 cr in FY26
India International Clearing Corp (IFSC)0.023.360.53%Treasury income; profitable
India INX Global Access IFSC0.70.0565.27% (via INX)Small
BSE Index Services Pvt Ltd38.823.9100%Subsidiary from 1 Jun 2024
Sold / ceased FY26BSE Institute (sold to FinX for Rs 16.9 cr; Rs 15.9 cr exceptional gain); BSE Institute of Research Development & Innovation (sold); BFSI Sector Skill Council (now associate)

3.8 Associates (AOC-1 Part B; FY26 share of profit, Rs cr)

AssociateStakeShare of profit
CDSL group (3,13,50,000 shares; mcap Rs 26,269 cr; stake ~Rs 3,940 cr [Est.])15.00%+68.4
Countrywide Commodity Repository24%-0.6
EBIX Insurance Broking (sold; associate until 8 Dec 2025)40%+0.7
Hindustan Power Exchange22.62%+1.0
India International Bullion Holding (IIBH)12.58% (group)-4.3
BSE E-Agricultural Markets26.09%+0.2
BFSI Sector Skill Council (Section 8)48.78%not consolidated
Total share of associates (consolidated P&L)-65.4 (FY25 82.6)

IIBH: in Aug-26 the board approved buying 50 cr IIBH shares from India INX and India ICC for Rs 50.50 cr cash. This takes BSE's direct stake from 3.33% to 20% (SEBI cleared 13 Jul 2026). Completion is not confirmed.

3.9 Technology, facilities, certifications, IP

FacilityLocationFunctionCapacity
HQ and exchange operationsP.J. Towers, Dalal Street, Fort, MumbaiExchange HQ, trading opsArea not disclosed
ColocationNot disclosedMember racks beside matching engines500 racks (~1.5 yrs headroom)
BSE ClearingMumbaiCCP, risk, settlement10 cr equity / 9 cr derivatives trades per day; 27,000 TPS per member-client
India INX / India ICCGIFT City, GandhinagarInternational exchange and clearingSee 3.6
DR siteNot disclosedDR/PR expansion under way-
LandMumbaiExploring purchase of a land plot (Q4 FY26 call)-
Certification / IP / ratingDetail
ISO 22301, ISO 27001BSE Clearing (business continuity, information security)
Credit ratingBSE Clearing AAA (India Ratings and CARE); CARE AAA; Stable reaffirmed 7 Feb 2025
Benchmark authorisationBSE Index Services: RBI Financial Benchmark Administrator
IPSENSEX (since 1986) and BANKEX trademarks; 200+ in-house indices
PatentsNone disclosed
Tech programmeBOLT Plus; 80+ peripheral systems being replaced; clearing segregated from trading; message loads ~100 mn to 18 bn/day; tech cost Rs 60.8 cr Q1 FY27 (+22%); FY26 Rs 203.1 cr; tech budget ~Rs 300 cr "almost going to be doubling"; vendors not disclosed
CapexFixed assets Rs 300 cr (Mar-25) to Rs 642 cr (Mar-26); FY26 capex Rs 515 cr; CWIP ~Rs 313 cr H1 FY26; D&A Rs 159 cr (+41%)
Foreign footprint~650 FPIs; data licensing in-house from Jan-27; SENSEX F&O at India INX; foreign revenue not disclosed

Segment Analysis

BSE does not report segment EBITDA. The revenue lines below are used as proxy segments. FY26 mix of consolidated revenue from operations: transaction charges 78.5%, listing services 10.7%, other operating income 7.2%, treasury income 3.5%. Standalone, equity derivatives were 70% (Rs 3,134 cr of Rs 4,470 cr) vs 54% in FY25. Consolidated FY26: 65%. Q1 FY27: ~74% [Est.]. FY24: ~13% [Est.].

4.1 Revenue lines (Rs cr)

LineFY24FY25FY26FY26 YoYQ1 FY26Q1 FY27Q1 YoY
Revenue from operations1,3712,9574,834+63%958.01,566.1+63%
Total incomen/a3,2365,148+59%1,044.51,706.8+63%
Transaction charges (all)n/a2,0303,795+87%737.51,327.7+80%
- Equity derivatives~1801,4153,134+121%598.01,155.0+93%
- Equity cashn/a303.6250.2-18%54.865.4+19%
StAR MF~128 [Est.]230.7285+24%61.273.3+20%
Colocationn/a74171+131%2751+89%
Other operating income (colo+data+index+subscription/software)n/a220349+59%7097.7+14%/+40%*
Listing feesn/a354.7388.7+10%~82 [Est.]88.1+7%
Book-building softwaren/a95.4104.1+9%19.010.1-47%
Treasury on clearing fundsn/a217.8171.4-21%45.440.0-12%
Data / Index servicesn/a50.4 / 24.067.6 / 36.6+34% / +52%---
Investment incomen/a254.7290.3+14%79.1135.2+71%

*Press reports +14%; Rs 97.7 vs Rs 70 cr is +40%. The definitions differ. FY24 revenue from operations of Rs 1,371 cr is confirmed by the Q1 FY27 deck. FY25/FY26 lines are verified against FY26 AR consolidated note 22 and the standalone MD&A split.

4.2 FY26 revenue mix chart (Rs cr, AR note 22)

FY26 revenue from operations by line (Rs cr) - total 4,834 Transaction charges3,795 Listing fees388.7 Treasury (clearing)171.4 Colocation171.1 Book-building104.1 Subscription/software73.2 Data services67.6 Index services36.6 Other listing fees26.2 Scale: 400 px = Rs 3,795 cr. Source: FY26 AR consolidated note 22.

4.3 Profitability (company definitions)

MetricFY25FY26Q3 FY26Q4 FY26Q1 FY27
Operating EBITDA (after Core SGF)1,500 (1,590 excl. SGF, 54%)3,079 (+105%)7321,040.7 (1,061.4 excl. SGF)1,046 (+67%)
Operating EBITDA margin51%64%59%67% (68% excl.)67% (vs 65%)
Operating expenses1,4581,755 (excl. D&A, incl. SGF)511 (+40%)557 incl. D&A / 523 excl. D&A incl. SGF536.8 incl. D&A (+49%) / 520 call basis
PAT attributable1,326 (reported 1,322)2,497 (reported 2,487)602 (+174%)797 (+61%)873-874 (+62%)
Net margin on total income~41%~48%--51%

Dropped figures: "FY26 EBITDA Rs 3,393 cr at 48%" (3,393/5,148 = 66%) and "77% Q1 EBITDA margin" do not reconcile. Long run: total income Rs 654.7 cr (FY21) to Rs 5,148 cr (FY26), ~51% CAGR. PAT Rs 141.7 cr to Rs 2,475.5 cr (continuing). Standalone Q1 FY27: total income Rs 1,601 cr (+69%), PAT Rs 801 cr (+71%).

4.4 Cost structure - the "COGS" of an exchange (Q1 FY27, Rs cr)

Cost lineQ1 FY27Q1 FY26YoY% of opexFY26FY25
Regulatory contribution192.8116+66%36% [Est.]649.7410.5
- of which SEBI regulatory fees----566.2331.4
Clearing and settlement90.355+64%17%280.4348.1
Employee87.170+24%16%297.8236.6
Technology60.850+22%11%203.1164.3
Other expenses63.241+54%12%247.3208.2
Depreciation42.627+58%8%159.0113.0
Core SGF contribution25.90--77.090.0
Total opex (incl. D&A, excl. Core SGF)536.8359+49%100%--

Regulatory plus clearing costs = 52.7-54% of opex in Q1 FY27 (51% Q3 FY26, 53% FY26, 48% Q1 FY26). Labour codes added ~Rs 22 cr to employee cost in Q3 FY26. Gross-profit proxy (revenue less volume-linked costs): Q1 FY27 Rs 1,283 cr (81.9%) vs Q1 FY26 Rs 787 cr (82.2%).

4.5 Fastest grower vs under pressure

Fastest growers. Equity derivatives (FY26 +121%, Q1 FY27 +93%); colocation (+131% FY26, small base); index services (+52%); data (+34%); investment income (+71% Q1 FY27, MTM-aided).
Under pressure. Listing services (Q4 FY26 -5% YoY / -24% QoQ; Q1 FY27 +7%); book-building roughly halved; treasury on clearing funds (-21% FY26); equity cash charges (-18% FY26; low yield ~Rs 1,080/cr, slow share gains); options ADTO -12% MoM in Aug-26.

Management focus by segment

Financials: P&L

Two revenue definitions. Screener's annual "Sales" = revenue from operations + investment income (FY26 Rs 5,124 cr). Its quarterly "Sales" = revenue from operations only. Company total income FY26 = Rs 5,148 cr. Annual tables use the Screener annual basis; quarterly tables use revenue from operations.

5.1 Five-year annual P&L (consolidated, Screener annual basis, Rs cr)

Rs crFY22FY23FY24FY25FY26TTM Q1 FY27
Revenue (ops + investment income)8419251,5683,2125,1245,442
YoY growth+33.5%+10.0%+69.5%+104.8%+59.5%+61%
Gross profitn.m.n.m.n.m.n.m.n.m.n.m.
Operating expenses4896098571,3361,6441,943
EBITDA3523167111,8763,4803,499
EBITDA margin41.9%34.2%45.3%58.4%67.9%64.3%
Other income52784172224437
Depreciation486095113159175
EBIT3042566161,7633,3213,324
EBIT margin36.1%27.7%39.3%54.9%64.8%61.1%
EBIT incl. other income3553341,0341,7863,3453,761
"Finance cost" (actually bank charges)2837393234~0
PBT3272979951,7543,3113,761
PBT margin38.9%32.1%63.5%54.6%64.6%69.1%
Tax rate25%31%22%25%25%~25%
PAT2452067721,3222,4872,822
PAT margin29.1%22.3%49.2%41.2%48.5%51.9%
PAT YoY+72.5%-15.9%+274.8%+71.2%+88.1%+79%
EPS (Screener, bonus-adj.)6.275.4319.1732.6561.2269.55
EPS (company, attributable, 411.98 mn issued)---32.1860.61 (60.32 continuing)-
Dividend payout72%74%26%23%16%-

TTM column basis note: TTM revenue (Rs 5,442 cr = 1,068 + 1,244 + 1,564 + 1,566) and TTM EBITDA (Rs 3,499 cr) are sums of Screener quarterly figures, which use revenue from operations only; investment income sits in TTM other income (Rs 437 cr). The FY26 67.9% vs TTM 64.3% EBITDA margin gap is therefore a definition change, not margin erosion.

Revenue (black) and PAT (gold), Rs cr, Screener annual basis 2,000 4,000 841245925206 1,5687723,2121,322 5,1242,487 FY22FY23FY24FY25FY26

5.2 Longer history and CAGR

Rs crFY15FY16FY17FY18FY19FY20FY21
Revenue584635572676652609630
PAT177177265702*199121142

*FY18 PAT includes Rs 529 cr other income, mainly the CDSL IPO stake-sale gain.

CAGR (Screener)10y5y3yTTM/1y
Revenue23%52%77%61%
Profit32%69%126%79%
Stock price-86%91%43%
RoE average20%28%36%46% (current)

5.3 FY26 line items (FY26 AR consolidated notes 22, 23, 27; Rs cr)

LineFY25FY26YoY
Transaction charges2,029.93,795.0+87%
Listing fees354.7388.7+10%
Book-building software charges95.4104.1+9%
Other listing fees39.926.2-34%
Treasury income on clearing and settlement funds217.8171.4-21%
Colocation and connectivity74.3171.1+130%
Data services50.467.6+34%
Index services24.036.6+52%
Annual subscription, processing, software, auction71.073.2+3%
Revenue from operations2,957.34,834.0+63%
Investment income254.7290.3+14%
Other income24.323.9-2%
Total income3,236.35,148.1+59%
Employee236.6297.8+26%
Technology164.3203.1+24%
Regulatory contribution (SEBI fees 331.4 / 566.2)410.5649.7+58%
Clearing and settlement348.1280.4-19%
Other expenses (incl. bank charges Rs 34.3 cr FY26)208.2247.3+19%
Depreciation113.0159.0+41%
Finance cost0.030.16-
Core SGF contribution90.077.0-14%
Share of associates82.665.4-21%
PAT total ops (attributable)1,322.3 (1,325.9)2,487.3 (2,497.0)+88%
EPS company (Rs)32.1860.61+88%

Standalone split (MD&A): equity derivatives Rs 3,134.4 cr vs Rs 1,415.5 cr; StAR MF Rs 284.9 cr vs Rs 230.8 cr; equity cash Rs 250.2 cr vs Rs 303.6 cr; colocation Rs 169.0 cr vs Rs 72.6 cr. Q1 FY27 deck (slide 25): transaction 1,327.7; treasury 40.0; listing 100.7; other op. 97.7; investment 135.2; other 5.5; employee 87.1; tech 60.8; regulatory 192.8; clearing 90.3; other exp. 63.2; D&A 42.6; Core SGF 25.9; operating EBITDA 1,046.0 (67%); PAT attributable 874.0.

5.4 Last 8 quarters (consolidated; revenue = revenue from operations; Rs cr)

QuarterRevenueYoYQoQEBITDAMarginEBITDA YoYEBITDA QoQPATPAT YoYPAT QoQEPS
Q2 FY25 (Sep-24)813+124.6%+35.0%45656.1%+141.3%+61.7%346+193.2%+31.1%8.54
Q3 FY25 (Dec-24)768+80.3%-5.5%23630.7%+61.6%-48.2%219+106.6%-36.7%5.41
Q4 FY25 (Mar-25)847+57.1%+10.3%48457.1%+220.5%+105.1%494+361.7%+125.6%12.17
Q1 FY26 (Jun-25)958+59.1%+13.1%62565.2%+121.6%+29.1%538+103.8%+8.9%13.28
Q2 FY26 (Sep-25)1,068+31.4%+11.5%68063.7%+49.1%+8.8%557+61.0%+3.5%13.75
Q3 FY26 (Dec-25)1,244+62.0%+16.5%73258.8%+210.2%+7.6%597+172.6%+7.2%14.82
Q4 FY26 (Mar-26)1,564+84.7%+25.7%1,04166.6%+115.1%+42.2%795+60.9%+33.2%19.55
Q1 FY27 (Jun-26)1,566+63.5%+0.1%1,04666.8%+67.4%+0.5%873+62.3%+9.8%21.43 (co. 21.22)

Base quarters Jun-23 to Jun-24 (Screener): revenue 260/362/426/539/602; EBITDA 114/189/146/151/282; PAT 440/118/106/107/264. Other income per quarter Q2 FY25 to Q1 FY27: 30, 83, 205, 115, 91, 108, 78, 160. Expenses: 358, 533, 362, 332, 388, 512, 523, 520.

Quarterly revenue from ops (bars, Rs cr) and EBITDA margin (gold line, %) 56%31%57%65%64%59%67%67% Q2'25Q3'25Q4'25Q1'26Q2'26Q3'26Q4'26Q1'27 8137688479581,0681,2441,5641,566

5.5 PAT definitions by source

PeriodScreener / reportedAttributableOther prints
Q1 FY26538539.4DSIJ "PAT" Rs 526.22 cr
Q4 FY26795.47797.33-
Q1 FY27872.66874.0+62% attributable; +65.8% reported per one source; IANS "+9.7%" is QoQ mislabelled as YoY
FY251,322.321,325.89-
FY262,487.252,496.98Continuing ops Rs 2,475.5 cr; Sahi Rs 2,497 cr

5.6 Quarter detail

Q1 FY27 (4 Aug 2026)

  • Revenue from ops Rs 1,566.02 cr; total income Rs 1,706.72 cr (+63.4% YoY, +4.7% QoQ)
  • Transaction charges 85% of revenue from ops
  • Investment income Rs 135 cr vs Rs 79 cr (+71%), bond MTM reversal; other income Rs 5 cr
  • Expenses Rs 537 cr vs Rs 359 cr (+49%)
  • PBT Rs 1,163.66 cr (+65.9%); before Core SGF Rs 1,170 cr vs Rs 685 cr (+71%)
  • Tax Rs 291 cr (25%); net margin 51%
  • Deck figures of Rs 11,867 mn / Rs 12,100 mn EBITDA include investment income; Rs 1,046 cr used
  • Standalone: total income Rs 1,601.44 cr (+68.9%), PBT Rs 1,073.13 cr (+71.4%), PAT Rs 801.15 cr (+71%), EPS Rs 19.45 vs Rs 11.37
  • Stock closed Rs 3,618 (+1.2%); trailing P/E 59.1x that day (NiftyTrader); 16 analysts: 7 Hold, 7 Buy, 2 Strong Buy
  • Nuvama: EBITDA margin 66.8% (+24 bp QoQ); Goodreturns 68.4%

Q4 FY26 (7 May 2026)

  • Revenue from ops Rs 1,563.51 cr (vs Rs 846.64 cr; Q3 Rs 1,244.10 cr)
  • Total income Rs 1,630 cr vs Rs 926.38 cr
  • Transaction charges Rs 1,311 cr (+114% YoY vs 612; +38% QoQ vs 953). Bajaj had labels swapped
  • Treasury Rs 40 cr (-9% YoY, -6% QoQ); listing Rs 119 cr (-5%, -24%); other op. income +43% YoY
  • Expenses Rs 557 cr (Q3 Rs 511 cr; Q4 FY25 Rs 392 cr)
  • EBITDA Rs 1,061 cr / 67.9% (press, excl. SGF) vs Screener Rs 1,041 cr / 66.6%
  • PAT Rs 795.47 cr; attributable Rs 797.33 cr (+61% YoY, +32.5% QoQ)
  • ~Rs 40 cr ECL provision on Rs 80 cr old NSE receivable at ICCL
  • Final dividend Rs 10 (FV Rs 2), record 10 Jul 2026, AGM 19 Aug 2026, paid by 17 Sep 2026
  • Stock record high post results; closed Rs 3,981 (+3.35%); Rs 3,904.80 (-1.5%) on 8 May

5.7 One-offs to normalise

PeriodItemAmountTreatment
FY18CDSL IPO stake-sale gain (other income)~529Non-recurring
Q1 FY24 / FY24Exceptional gain (deck: Rs 367.5 cr post-tax); Q1 FY24 PAT Rs 440 cr vs ~Rs 110 cr run-rate; FY24 other income Rs 417 cr (standalone Rs 538 cr)367.5FY24 PAT ex-item ~Rs 400-430 cr (deck: Rs 416 cr), not Rs 772 cr. CDSL still a 15% associate (correction)
Q4 FY24SEBI regulatory-fee arrears on notional (Rs 68.64 cr + GST FY07-23 incl. Rs 30.34 cr interest at 15%; Rs 96.30 cr + GST FY24; ~Rs 165 cr + GST)169.77 bookedQ4 FY24 expenses Rs 388 cr, OPM 28%. Payment not separately confirmed
Q3 FY25Group Core SGF provision (BSE 53, ICCL 147)~200OPM 31%
Q4 FY25ICCL Rs 147 cr reversed (SEBI allowed surplus currency-segment SGF); Rs 37.6 cr paid to NSE Clearingnet +109Explains Q4 FY25 rebound
Q3 FY26Labour code (Rs 22 cr), Core SGF (Rs 45.6 cr), impairment (amount not found)~48 net (adj. PAT ~650 vs 602)HSIE adj. margin 65.6%
Q4 FY26ECL on NSE receivable at ICCL~40Inter-CCP dispute, not member default
FY26 standaloneBSE Institute sale gain15.9Exceptional
Q1 FY27Bond MTM reversal in investment income (~Rs 67 cr to Rs 140.7 cr per call)~+70Reversible treasury gain

5.8 Standalone P&L (Screener)

Rs crFY22FY23FY24FY25FY26
Revenue6987091,2582,8834,801
Operating profit2772544551,6263,248
OPM40%36%36%56%68%
Other income2633538-61-25
PAT1951677531,1122,334
EPS (Rs)4.814.1118.5527.3957.23
Earnings quality [Analyst View]. Revenue growth is entirely organic and volume-led (premium ADPT +117% in FY26 at a fixed rate card; transaction charges flat QoQ in Q1 FY27 on a flat rate card). There is no inorganic contribution beyond the Index Services consolidation (Jun-24). Three of the last three quarters carry non-recurring items, so use core PAT for run-rate. Cash backing: standalone OCF/PAT 1.14x in FY26 after three weak years. See Tab 6.

Balance Sheet, Cash Flow & Ratios

6.1 Five-year balance sheet (consolidated, 31 Mar, Rs cr)

Rs crFY22FY23FY24FY25FY26
Fixed assets incl. intangibles (Screener)161252285300642
- PP&E (StockAnalysis)99.8154.9209.5262.9595.1
- Other intangibles30.961.252.152.385.4
CWIP102155477
Goodwill37.437.437.438.138.1
Inventorynilnilnilnilnil
Trade receivables147.4197.1338.8584.9798.7
Cash and equivalents886.9477.02,112.51,551.01,671.6
Short-term investments625.6919.21,440.21,649.31,620.9
Long-term investments598.11,019.91,540.51,275.62,678.0
Investments (Screener total)1,9681,4532,3902,8453,837
Net cash (StockAnalysis)2,7071,7564,1084,3815,503
Total debt~0~0~0~0~0
Net worth (Screener)2,6542,7013,3024,4246,673
Net worth (StockAnalysis)3,4313,5874,4105,7088,042
Minority interest135128152152122.5
Other liabilities (clearing margins, settlement, SGF)3,5313,2936,1485,9186,773
Accounts payable72.980.4190.6114.0130.9
Total assets6,1855,9949,45010,34213,446
Equity share capital2727272782
Book value/share (StockAnalysis, Rs)81.285.1104.8136.8194.2

6.2 Cash flow and PAT-to-OCF reconciliation (consolidated, Rs cr)

Rs crFY22FY23FY24FY25FY26
PAT2452067721,3222,487
D&A30416689137
Change in working capital+1,194-418+2,403-820+586
- receivables+24-42-122-122-306
- payables-25+8+110-79+17
- other (mainly clearing margins)+1,196-384+2,415-619+875
OCF1,442-1372,6434143,104
Capex-32-143-131-153-515
FCF1,410-2802,5132622,589
CFI-980-111-871-758-2,678
Net investment in securities-967-38-876-703-2,463
Dividends paid-96-186-165-206-316
CFF+9-186-149-206-304
FY-end market cap12,7695,83834,08174,1841,09,456
FCF yield on FY-end mcap11.0%-4.8%7.4%0.35%2.4%
OCF/PAT5.9x-0.7x3.4x0.31x1.25x

Standalone cash flow (the cleaner conversion measure)

Rs crFY22FY23FY24FY25FY26
Standalone PAT1951677531,1122,334
Standalone OCF202874925162,652
Standalone FCF180-263843892,187
OCF/PAT1.04x0.52x0.65x0.46x1.14x
Divergence flags. (1) Consolidated OCF is not a quality signal. Cumulative OCF of Rs 7,466 cr vs PAT of Rs 5,032 cr (1.48x) is driven by clearing-margin float, so the 7-11% FCF yields in FY22/24/26 are inflated. (2) Standalone OCF was below PAT in FY23-FY25 (0.52x/0.65x/0.46x). FY24 included ~Rs 538 cr non-operating other income (core conversion ~2.3x [Est.]). FY25 had receivables +Rs 122 cr, payables -Rs 79 cr, and likely SEBI arrears and SGF payments. It recovered to 1.14x in FY26. (3) Receivables rose 5.4x FY22-26 vs revenue 6.1x; debtor days 33 to 39; Q4 FY26 ECL. (4) Capex stepping up: 10% of revenue in FY26 vs ~5%; 500 racks last ~1.5 years. Current FCF yield: 1.9% consolidated (Rs 2,589 cr / Rs 1,35,144 cr), 1.6% standalone; FCF/share Rs 62.8.

6.3 Working capital (consolidated)

DaysFY22FY23FY24FY25FY26
Debtor days (Screener)2836493339
Debtor days (standalone)2724352738
Inventory daysnilnilnilnilnil
Creditor days [Est.]5448813129
CCC (debtor - creditor)-26-12-32+2+10
CCC (Screener, ignores payables)2836493339
Working-capital days (incl. clearing float)-1,148-846-1,107-452-333

Negative WC days reflect the margin float at ICCL. The move to -333 is a ratio effect (revenue up 6x, float up ~2x), not deterioration. Receivables are ~2.3x payables.

6.4 Ratios

RatioFY22FY23FY24FY25FY26Current
RoE (avg Screener NW) [Est.]9.5%7.7%25.7%34.2%44.8%46.0%
RoE (StockAnalysis)7.5%5.9%19.2%26.0%36.0%-
RoCE (Screener)15%12%23%47%60%60%
RoCE (standalone)12%10%16%47%66%-
RoIC (StockAnalysis)19.6%14.7%61.8%199.9%153.6%133.5%
RoA3.3%2.8%6.9%13.7%20.8%-
Debt/equity0.000.000.000.000.000.00
Net debt/equity-0.79-0.49-0.93-0.77-0.68-
Interest coverage (on bank charges)12.7x9.0x26.5x55.8x98.4xn.m.
Current ratio1.811.611.191.591.53-
Asset turnover (YE)0.14x0.15x0.17x0.31x0.38x-
Asset turnover (avg)0.160.150.200.330.43-
Fixed-asset turnover5.2x3.7x5.5x10.7x8.0x-

6.5 Debt, rating, contingent items

ItemDetail
BorrowingsNil FY18-FY26; no term loans, WC lines, or lenders. Finance cost Rs 0.16 cr (AR); Screener "interest" ~Rs 34 cr = bank charges (Rs 34.33 cr)
LeasesAR note 32: no contracts requiring Ind AS 116; no lease liabilities (earlier lease inference withdrawn)
BSE Ltd rating"Not Applicable" (FY26 AR corporate-governance report)
ICCL ratingCARE AAA; Stable, reaffirmed 7 Feb 2025. Drivers: BSE parentage, SEBI-recognised Qualifying CCP, nil gearing. TNW Rs 1,179 cr (Sep-24) incl. Core SGF Rs 981 cr vs minimum Rs 47 cr. Downgrade triggers: weaker BSE linkage, SGF shortfall, weaker BSE credit
Core SGFRs 1,144 cr (Q1 FY26), Rs 1,159 cr (Oct-25), Rs 1,202 cr (Jan-26). P&L charges continue; SEBI can require top-ups as stress-test MRC rises with OI
SEBI regulatory feeOn options notional since Apr-24; Rs 193 cr in Q1 FY27
Contingent liabilities (AR note 37)Rs 330.2 cr (Mar-26) vs Rs 239.1 cr: income tax Rs 135.0 cr (111.7), indirect tax Rs 59.3 cr (22.1), claims not acknowledged Rs 135.7 cr (105.0), guarantees Rs 0.2 cr. Standalone Rs 207.9 cr. ~4% of net worth
ICCL counterparty~Rs 40 cr ECL on old Rs 80 cr NSE receivable (inter-CCP)

6.6 Equity dilution and share-count history

Date / FYEventEffect
Feb 2017 (FY18)IPO, 100% OFSNo dilution
FY19 (2018)Open-market buyback ~Rs 166 cr, max price Rs 1,100 pre-bonus (aggregator avg ~Rs 822, single source)Equity capital Rs 11 cr to Rs 10 cr; FY19 CFF -Rs 352 cr
FY20 (Aug-Sep 2019)Tender: 67,64,705 shares at Rs 680, Rs 460 cr; record date 29 Jul 2019Rs 10 cr to Rs 9 cr; CFF -Rs 618 cr
FY22Bonus 2:1Rs 9 cr to Rs 27 cr (FV Rs 2)
FY24 (Sep-Oct 2023)Tender at Rs 1,080 (revised from Rs 816; size Rs 374.8 cr); only 86,532 shares bought (~Rs 9.3 cr + tax; StockAnalysis Rs 14 cr)Immaterial
May 2025 (FY26)Bonus 2:1; record 23 May 2025; 27.08 cr shares allotted 26 May 2025 (StockAnalysis "3-for-1 split")13.54 cr to 40.61 cr shares; capital Rs 27 cr to Rs 82 cr
FY2617,55,000 demutualisation-scheme abeyance shares allotted (three cases); not ESOP406.13 mn to 407.88 mn (+0.43%); issued incl. abeyance 41,19,79,077
Current40,78,84,077 outstanding (FV Rs 2)No QIP, preferential, warrants or rights since listing; ESOP not material
Buyback discrepancy (unresolved): the investor deck shows cumulative buybacks of Rs 653.5 cr (FY18, FY19, FY20, FY24). The bottom-up sum is ~Rs 640 cr (Rs 166 + Rs 460 + ~Rs 9-14 cr). The difference may be buyback tax or definitions. Dividends FY16-FY26: Rs 1,773 cr. The FY25 AR comparative of 68,51,237 shares = 67,64,705 + 86,532.

Balance-sheet risks: SGF top-ups as derivatives OI grows; inter-CCP receivables; rising capex intensity; earmarked funds mistaken for free cash; P/B and RoE depend on how Core SGF is classified.

Management, Ownership & Governance (no-promoter MII)

No promoter. BSE was demutualised and corporatised on 19 May 2007 under a 2005 SEBI scheme. It is a professionally managed MII governed by the SEBI SECC Regulations, 2018. Promoter holding 0% and pledge 0% in every quarter. The Jul-26 postal-ballot scrutiniser recorded that "promoter group did not vote". Instead of promoter quality, this tab analyses the regulator-approved board and MD, the separation of regulatory and business verticals, and shareholder concentration.

7.1 The control framework that replaces a promoter

ControlRuleBSE status
Board compositionAt least 2/3 Public Interest Directors (PIDs); chair must be a PID6 PIDs, 1 shareholder director, 2-3 executives; PID chair
AppointmentsSEBI approves MD & CEO, PIDs, regulatory-vertical KMPsMD approved Nov 2022; EDs by SEBI letter 25 May 2026
Ownership caps5% any person; 15% for stock exchange/depository/bank/insurer/PFI; 49% aggregate for trading membersLIC 5.57% (insurer, within 15%); no other holder near 5%
Vertical structureVertical 1 Critical Operations; Vertical 2 Regulatory, Compliance, Risk, Investor GrievancesEDs appointed 2026 (Shukla V1; Raghavan V2)
KMP payNRC under SEBI MII compensation norms; 50% variable deferred 3 years; clawbackApplied
Mandated committeesRegulatory Oversight, Member Selection, SGF, Risk Management, Technology, Advisory, Investor GrievanceConstituted
Depository stakeExchange stake in a depository capped at 15%CDSL at 15% (4.54% sold Jun-23)

7.2 MD & CEO - Sundararaman Ramamurthy

ItemDetail
TenureFrom 4 Jan 2023 (SEBI approved Nov 2022; postal ballot Dec 2022). Term: 5 years or age 65, whichever first. Ends by Jan 2028 at latest. No reappointment filing found. MarketScreener "since 20/03/2015" is an aggregator error
Age / qualifications~63; cost accountant, member of Indian Institute of Bankers; ~40 years' experience
CareerNSE founding team (mid-1990s, ~2 decades); MD & COO Bank of America India; earlier SBI, IDBI
Track recordRelaunched Sensex/Bankex derivatives May 2023 (F&O share <1% to ~15.3% by Feb-24); met 300-350 brokers; ~50 FPIs and 350 brokers active by early 2024; tick-size cut on ~650 stocks. Consolidated revenue Rs 1,568 / 3,212 / 5,124 cr and PAT Rs 772 / 1,322 / 2,487 cr (FY24-26)
Pay (FY26 AR)Rs 8.65 cr short-term (FY25 Rs 7.35 cr), +17% SECC basis; 79.16x median employee; median pay +26%
PredecessorAshishkumar Chauhan, now MD & CEO of NSE

7.3 Executive Directors (SEBI-mandated, 2026)

NameRoleTermBackgroundApproval
Gopalan S. RaghavanED, Vertical 2 (Regulatory, Compliance, Risk, Grievances); KMP, board member18 Jun 2026 - 18 May 203030+ yrs; ex-ED and Interim MD NSDL; CLSA India; SEBI founding team; FCA, ACS91.44% for (11.35 cr for / 1.06 cr against), 24 Jul 2026
Saurabh ShuklaED, Vertical 1 (Critical Operations); KMP4 Sep 2026 - 3 Sep 2031Not disclosed (GAP); board seat unconfirmed91.18% for (11.35 cr / 1.10 cr against)

ED pay per ballot notice: Rs 3.45 cr/yr (Rs 2.59 cr fixed, Rs 0.86 cr variable); not clear if per ED. ~8.6-8.8% dissent is notable for routine appointments. Ballot sent 24 Jun 2026 to 9,55,613 members; 9,85,365 eligible (excl. trading members); scrutiniser Bhaskar Upadhyay (N L Bhatia & Associates); e-voting via CDSL.

7.4 CFO, KMP and senior management

NameDesignationSince / notes
Deepak GoelCFO11 Sep 2023 (~44); FY26 pay Rs 2.08 cr (FY25 1.60), +30%, 19.01x median. Succeeded Nayan Mehta [unverified]
Vishal Kamalaksha BhatCompany Secretary & Compliance Officer15 Mar 2022; Rs 0.48 cr (0.39), +21%, 4.36x median
Sunil RamrakhianiChief Business Officer-
K. KamalaChief Regulatory Officer-
Usha SharmaDeputy CRO-
Khushro BulsaraChief Risk Officer & Head, IPF-
Subhash KelkarCIO-
Viral DavdaCTO4 Nov 2025 (~58); replaced Sameer Narkar (1 Jun 2024 - ~Nov 2025)
Geetha GangadharanGeneral Counsel5 Jun 2026; replaced Shailesh Jain
Vivek JainHead HR3 Mar 2025; earlier Ritu Kundu
Rajeev GargSales & Marketing~49
Gopalkrishnan IyerEVP, Listing Automation-
Anand SethuramanHead of IR-

Headcount 850. Average non-managerial raise 31% vs managerial 20%. CTO, GC and HR head changed in 2024-26 (moderate churn); no adverse resignation letters found.

7.5 Board of Directors (Oct 2026)

#NameRoleCategorySinceBackgroundFY26 sitting fees
1Prof. Subhasis Chaudhuri (~63)ChairpersonPID21 Nov 2024IIT Bombay EE professor, ex-Director [unverified]; replaced Pramod AgrawalRs 37 lakh
2Sundararaman RamamurthyMD & CEOExecutive4 Jan 2023See 7.2-
3Gopalan S. RaghavanED (V2)Executive18 Jun 2026Ex-NSDL interim MD-
4Jagannath Mukkavilli (~63)DirectorShareholder director13 Feb 2024Ex-LIC [unverified]; Audit, NRC, CompensationRs 21 lakh
5Justice (Retd.) Shiavax Jal Vazifdar (~70)DirectorPID19 May 2022Ex-Chief Justice, Punjab & Haryana HC [unverified]Rs 30 lakh
6Dr. Padmini SrinivasanAudit Chair from 1 Aug 2025PID14 Feb 2023Finance/treasury [unverified]Rs 33 lakh
7Shamanna BalasubramanyaDirectorPID23 Jan 2025Ex-RBI [unverified]Rs 34 lakh
8Rajiv Bansal (~63)DirectorPID1 Apr 2025Retd. IAS, ex-Civil Aviation Secretary [unverified]Rs 24 lakh
9Dr. Santanu PaulNRC & Compensation ChairPID14 Jan 2026Tech/ed-tech entrepreneur [unverified]Rs 7 lakh
10Saurabh ShuklaED (V1)Executive4 Sep 2026 (seat unconfirmed)Not disclosed-
-N. Saravade (resigned 21 Aug 2025)-PID--Rs 12 lakh
DateBoard change
2018Shareholder director Roland Schwinn (Deutsche Börse-linked) resigned [unverified]
May 2022S.S. Mundra (ex-RBI DG) appointed Chairman
8 Nov 2024Pramod Agrawal resigned as Chairman and PID (no adverse reason found)
21 Nov 2024Prof. Chaudhuri appointed Chairman (successor within two weeks)
Jan 2025 / 1 Apr 2025Balasubramanya / Bansal joined
24 Apr 2025Jayshree Vyas completed term
21 Aug 2025Nandkumar Saravade resigned
14 Jan 2026Santanu Paul joined
Jun / Sep 2026Raghavan / Shukla (EDs)

Committees: Audit (Srinivasan chair; Chaudhuri, Balasubramanya, Mukkavilli); NRC and Compensation (Paul). One woman director (meets the minimum). Board attendance: not retrieved.

21st AGM (19 Aug 2026) voting: all three resolutions passed. FY26 accounts and the Rs 10 final dividend passed with 99.999% in favour. The re-appointment of shareholder director Jagannath Mukkavilli passed with 83.37% for and 16.63% against; trading members were barred from voting on it under SECC Reg. 2(ka). SEBI approved the re-appointment on 11 Sep 2026. A one-in-six vote against is notable for a board seat at a no-promoter MII. The KKC auditor appointment was not on the AGM agenda. Investor meetings in Sep-26: J.P. Morgan (21 Sep), Schonfeld, Axis Max Life and William Blair (22 Sep), Westwood Global (24 Sep) and BlackRock (29 Sep, virtual).

7.6 Shareholding pattern

Category (%)Jun-24Mar-25Jun-25Sep-25Dec-25Mar-26Jun-26
Promoter0.000.000.000.000.000.000.00
FII / FPI11.1216.7818.1416.2517.4519.4221.32
DII total11.6012.3311.2719.9123.7425.0924.15
- Mutual funds---9.0411.6612.5211.69
- Insurance--~1.5410.2511.6011.8811.85
Government0.000.000.000.090.090.090.09
Public / non-institutional54.5248.7850.0163.7658.7355.4054.45
Others (SECC category, reclassified)22.7522.1120.580.000.000.000.00
No. of shareholders5,49,7586,68,1749,49,95312,91,81210,58,1449,75,4359,99,275

Classification break at Sep-25: the ~21% "others" bucket (LIC, strategic institutions, trading members) was reclassified. This is not buying. Institutional holding 45.55% (18.58 cr shares) Jun-26 vs 29.41% Jun-25 (22.7% Jun-24). FII trend since Dec-23: 12.0, 13.0, 11.1, 13.0, 16.0, 16.8, 18.1, 16.3, 17.5, 19.4, 21.3. MF schemes holding: 248 to 287 in Q1 FY27. Trading members' 7.7% (one source) is not a separate line in the NSE XBRL. Outliers excluded: Anand Rathi FII 9.63%, Choice DII 0.55%. Sep-26 pattern not filed as of 9 Oct.

Shareholding %, Sep-25 to Jun-26: Public (black), DII (gold), FII (navy) 63.858.755.454.5 19.923.725.124.2 16.317.519.421.3 Sep-25Dec-25Mar-26Jun-26

7.7 Top holders and retail breakdown (Jun-26, NSE XBRL)

Holder%SharesChange / view
Life Insurance Corporation of India5.572,27,29,500Flat; largest; also owns NSE
Vanguard (PAC)2.1687,96,590Newly disclosed; passive
Kotak Mahindra MF1.83~0.75 cr-0.60 pp QoQ (2.43%)
Siddharth Balachandran (Dubai NRI, Buimerc)1.7069.5 lakh-0.31 pp QoQ; ~3.01% in 2025; down ~44% in ~15 months; holds ~0.38% of NSE
SBI Life1.6567.5 lakh+0.21 pp
Tata AIA Life1.3756 lakh-0.36 pp
Nippon India MF1.3655 lakh-0.35 pp; bought ~0.62% on 29 Sep
Motilal Oswal MF1.3655 lakh+0.14 pp
HDFC Life1.3655 lakh+0.19 pp
Invesco India MF1.3455 lakh-0.26 pp
S. Gopalakrishnan (Infosys co-founder)1.1747,77,515Flat
New World Fund Inc (Capital Group)1.0944.6 lakhNew >1%
UTI MF<1 + ~0.6627.12 lakh bought29 Sep block
Zerodha Broking<1-~3.7% in 2022-Dec-23; exited/reduced [unverified]
Deutsche Boerse0-Exited Sep 2020 (12 lakh shares to Acacia/Ruane Cunniff at Rs 549)
Category (Jun-26)Holders%
Small individuals (<Rs 2 lakh)9,62,35429.76
Large individuals (>Rs 2 lakh)1218.71
Bodies corporate3,57010.90
NRIs15,8843.52
HUF, trusts, others-1.54
FPI Category I / II790 / 4720.08 / 1.24
MF schemes / insurers287 / 7411.69 / 11.85
AIFs / state govt / other institutions-0.33 / 0.09 / 0.69

7.8 Bulk deals, insider and SAST

DateSellerBuyerSharesPriceRs crStake
29 Sep 2026BNP Paribas Financial Markets-44.51 lakh3,199.541,424.3~1.09%
29 Sep 2026Goldman Sachs Inv. Mauritius I-23.81 lakh3,200762.1~0.58%
29 Sep 2026-UTI MF27.12 lakh3,200868.1~0.66%
29 Sep 2026-Nippon India MF25.29 lakh3,200809.5~0.62%
Total68.33 lakh sold (Rs 2,186.4 cr, 1.67%)52.41 lakh named MF buying (Rs 1,677.6 cr, 1.28%); Rs 509 cr (0.39%) unidentified----
Jan-Feb 2024Marshall Wace, SocGen, BNP Arbitrage (among themselves)--2,112-2,469 pre-bonus--

Interpretation: dealer and arbitrage books (P-note, swap and index-arbitrage hedges) exited into inclusion-day passive demand; domestic MFs accumulated at Rs 3,200. Stock closed Rs 3,092 (-3.4%) on 30 Sep (intraday low Rs 3,075). No director or KMP open-market trades identified (Trendlyne insider page 404). No LIC SAST trigger found. Trading window closed from 1 Oct 2026 until 48 hours after Q2 results. Investor meetings Sep-26: J.P. Morgan (21), Schonfeld, Axis Max Life, William Blair (22), Westwood Global (24), BlackRock (29, virtual). Block-deal history beyond this: GAP.

7.9 Related-party transactions (FY26 AR, Rs cr)

CounterpartyNatureFY26FY25
ICCL (100%)Clearing-house expenses paid by BSE126.0771.11
ICCLRent, software, cost recoveries, royalty received17.7713.34
ICCLDividend received35.40-
BSE TechnologiesTechnology expense paid48.0631.51
BSE TechnologiesDividend received10.0015.00
BSE Index ServicesIndex-management fee paid2.15-
BSE Index ServicesDividend received15.0012.00
BSE Institute (sold May-25)Dividend received0.7812.00
India INX (65.27%)Fresh equity investment41.28-
CDSL (15%)Dividend received39.1934.49
CDSLAdministrative expenses paid2.851.75
Hindustan Power ExchangeSoftware services by group10.215.17
IIBX (associate group)Rent and infrastructure received6.706.99
IIBHInvestment by group-20.00
BSE CSR Foundation, BIL-RyersonCSR contributions0.150.71
IIBH (4 Aug 2026)50 cr shares bought from India INX/ICC; stake 3.33% to 20%; ~Rs 1.01 per Re 1 share; IIBH FY26 turnover Rs 10.47 cr50.50 (FY27)-
BSEINV, BASL into BTPL (23 Apr 2026)Sec 233 fast-track merger (MCA RD order 8 Apr 2026); BTPL issues 27.74 cr shares; FY25 turnover BSEINV 0.51, BASL 0.34, BTPL 41.25share swap-

All RPTs ordinary course and arm's length; AOC-2 not applicable; balances unsecured and interest-free. Dividends upstreamed ~Rs 100 cr in FY26. The latest Reg 23(9) disclosure (13 Nov 2025, H1 FY26) could not be parsed.

7.10 Auditors

ItemDetail
StatutoryS.R. Batliboi & Co. LLP (EY), partner Pikashoo Mutha; second 5-year term ends at 22nd AGM (2027); first appointed ~2017 [unverified]
FY26 opinionUnmodified (report 7 May 2026); no emphasis of matter. Consolidated KAM: IT systems and controls. Standalone KAMs: IT systems; valuation/impairment of investments in subsidiaries and associates at cost Rs 854.69 cr
Q1 FY27Unmodified limited review
RotationKKC & Associates LLP (FRN 105146W/W100621) proposed by the board 4 Aug 2026 for 5 years (from the conclusion of the 22nd AGM to the 27th AGM), subject to shareholder approval. It was not on the 19 Aug 2026 (21st) AGM agenda, which had three resolutions only, and no postal ballot was filed to 9 Oct; approval is expected at or before the 22nd AGM (2027). Mandatory rotation, not a red flag. Unrelated: KKC resigned as IVC's auditor Aug-26
InternalAneja Associates for 3 years from FY26, replacing Rodi Dabir & Co (board 6 May 2025)
SecretarialDhrumil M. Shah & Co. LLP, FY26-FY30

7.11 Group structure, contribution and deal record

EntityStakePurpose / note
ICCL / BSE Clearing100%Clearing for all segments; Core SGF; OTC debt, tri-party repo
India INX65.27% (62.87% Mar-25)Loss-making; FY23 revenue Rs 6 cr, loss Rs 29.6 cr; FY26 loss Rs 25.8 cr
India ICC60.53%Profitable on treasury (Rs 3.26 cr)
India INX Global Accessvia INXBroker-dealer
BSE Technologies100%IT; FY26 Rs 82.29 cr / Rs 16.24 cr
BSE Index Services100%Sensex/Bankex IP; buyout price GAP
BSE CSR Integrated Foundation100%CSR
CDSL15%Sold 26% in Jun-2017 IPO; 4.54% Jun-23; earlier 10% sell-down [unverified]
Countrywide Commodity Repository24%CDSL group
IIBH3.33% to 20% directBullion holding (IIBX)
BSE Ebix Insurance Broking40% (sold)Ebix Inc bankrupt ~Dec-23; ~Rs 14 cr invested; carrying Rs 2.00 cr to Rs 0.96 cr
Hindustan Power Exchange22.62%With PTC (23%), ICICI Bank (9%); sub-scale vs IEX
BSE E-Agricultural Markets26.09%Small
BFSI Sector Skill Council48.78%Not-for-profit
BIL Ryerson Futures10.43%Legacy
ONDC4.63%Strategic
Indus Water Institute8% (via WOS)Acquired without SEBI approval; Rs 3 lakh penalty (Jul-22)
ContributionConsolidatedStandaloneSubs + associates
Q1 FY27 total income1,706.71,601.4~105
Q1 FY27 PAT872.7801.2~72 (~8%)
FY26 PAT2,4872,334 (incl. Rs 15.9 cr gain)~153 (ICCL 169.8, CDSL 68.4, Index 23.9, BTPL 16.2; less INX -25.8 and eliminations)
DealWhenPriceWorking?
CDSL stake to 15%Jun-2017 IPO + earlier-Value-accretive (Capitalmind ~Rs 3,000 cr in 2023; ~Rs 3,940 cr now)
Asia Index buyout of S&P DJI 50%1 Jun 2024Not disclosedYes - coincided with Sensex options boom
Ebix JV2019-20~Rs 14 crNo; minimal impact
HPX2021-22-Sub-scale
BSE Institute sale to FinXMay 2025Rs 16.9 cr (gain Rs 15.9 cr)Non-core exit
IIBH step-upAug 2026Rs 50.50 cr intra-groupToo early
BSEINV/BASL mergerApr 2026Share swapSimplification

7.12 Regulatory actions and governance red flags

DateMatterAmountStatus
Apr 2024SEBI: regulatory fee on options notional, retrospective~Rs 165 cr + GST (booked Rs 169.77 cr Q4 FY24)Stock -19%; Jefferies est. 15-18% EPS hit; now recurring (SEBI fees Rs 566 cr FY26)
25 Jun 2025SEBI adjudication (inspection Feb-21 to Sep-22): announcements accessible to listing team and paid data clients before release; weak oversight of client-code modificationsRs 25 lakh"Omissions, laxity and negligence", no gain/loss; appeal status GAP
29 Jul 2022WOS acquired 8% of Indus Water Institute without SEBI approvalRs 3 lakhUnder legal review
2022SEBI penalised BSE and NSE for laxity in Karvy caseNot verified-
~2024SEBI scrutiny of investor funds used for bulk SMS (BusinessWorld)Not quantifiedOutcome GAP; monitor
May 2024SEBI ended BASL's IA supervision role-BASL dormant, merged
HistoricalEx-president Anand Rathi rapped for seeking surveillance data-Pre-demutualisation legacy
Nov 2024Mid-term chairman resignation-No adverse reason
Q4 FY26ECL on NSE receivable at ICCL~Rs 40 cr of Rs 80 crInter-CCP dispute risk

MCA/NCLT: nothing adverse. A s.270A/ITAT item found in search relates to another company and is excluded. Open gaps: regulatory-fee arrears payment, Asia Index price, Saurabh Shukla background, PID reappointment dates, SAT appeal, bulk-SMS outcome, LIC SAST filings, board attendance.

Governance verdict [Analyst View]: structurally strong, because SEBI controls the board, the CEO, KMP pay and ownership caps. Watch five things: (1) CEO succession by Jan 2028; (2) regulator-as-counterparty risk; (3) recurring small SEBI inspection penalties; (4) intra-group RPT flows (IIBH, ICCL, CDSL); (5) the non-core associate tail (Ebix, HPX, India INX losses).

Supply Chain

BSE makes no physical goods. Its "production" is order matching, risk management, clearing and settlement, and data and index computation. Its "supply chain" is regulatory licences, liquidity providers, technology and clearing.

↑ Upstream - what BSE depends on

InputSupplier / counterpartyCost / scaleDependence and pass-through
Regulatory licence and feesSEBIRegulatory contribution Rs 649.7 cr FY26 (SEBI fees Rs 566.2 cr vs Rs 331.4 cr); Rs 192.8 cr Q1 FY27 (~12% of revenue from ops [Est.])Non-negotiable; on options notional since Apr-24 while BSE charges on premium, so low volatility compresses margin (Q2 FY26)
Settlement Guarantee FundICCL / SEBI frameworkRs 77 cr FY26; Rs 25.9 cr Q1 FY27; Rs 10.6 cr Q2 FY26; Rs 45.6 cr Q3 FY26; Rs 20.7 cr Q4 FY265% of transaction revenue from Sep-25, capped at 150% of requirement; cut to 3.5% (Q4 FY26). Q1 FY27 Rs 25.9 cr is neither 5% nor 3.5% of Rs 1,328 cr; base unclear. Management will not forecast
Clearing and settlementBSE Clearing (and NSE Clearing for interoperable trades)Rs 280.4 cr FY26; Rs 90.3 cr Q1 FY27Rises with premium and volatility; hard to predict
Liquidity providers~600-610 members; domestic prop traders ~50% of notional; HFTs ~35% of index options (Q1 FY26)-Key concentration; sensitive to STT, RBI BG norms, CAS, enforcement
TechnologyIn-house BSE Technologies; vendors not disclosedTech Rs 203.1 cr FY26; capex Rs 515 crNo evidence of single-source matching-engine dependence; generic import dependence on servers and network gear, unquantified
Market-data distributionDeutsche Börse (13 years, to 31 Dec 2026)Data ~4-5% of revenueInsourced from 1 Jan 2027: execution risk, margin upside
Index IPIn-house (BSE Index Services)-No external licence dependence post Jun-24
Bank funding of brokersRBI (BG and intermediary-lending norms, 1 Jul 2026)-Lagged hit as legacy BGs run off; HDFC Sec 8-10%, IIFL 10-15%, Jefferies 10-12% volume risk
Fiscal leviesMinistry of Finance (STT)Options STT 0.10% to 0.15%; futures 0.02% to 0.05%; exercise 0.125% to 0.15% (Apr-26)Borne by participants; hurts volumes, not margin directly
Talent850 employeesEmployee Rs 297.8 cr FY26Labour codes +Rs 22 cr (Q3 FY26)

Supplier concentration: effectively one regulator (SEBI), RBI (benchmark authorisation; broker funding) and Deutsche Börse (data until Dec-26). BSE sets its own fee schedules subject to SEBI approval and the true-to-label uniform-charges rule. It cannot pass regulatory fees through beyond its own fee schedule.

↓ Downstream - who depends on BSE

Customer groupScaleConcentrationStickiness / tenor
Trading members (billed for transaction charges)~600-610 derivatives members (446 to 587 in FY26)Top-5/10 member share not disclosedConnectivity is sticky; order flow is not
End clients - prop traders~50% of notionalHigh (best proxy for concentration)Venue-switches on fees
Retail11.2 m derivatives UCCs; 25.8 cr investor accountsLowRouted via discount brokers
FPIs~650 (target 800)LowOnboarding sticky
Listed issuers5,600+ companies; 750+ SMELowPerpetual; annual fees (Rs 63.0 cr/qtr)
MF ecosystem50 AMCs, 84,150 distributors, 293 m registered investorsLowNetwork leader (>85%)
Passive funds/AMCs103 ETFs/index funds on 36 indices, Rs 2.6 lakh cr AUMModerateMulti-year index licences
Colocation tenantsHFT and prop firms; 500 racksModerateEffectively annual, renewable, costly to move
Data clientsTerminals, vendors (via DB until Dec-26)-Direct from Jan-27

End products containing BSE output: broker option-trading apps (SENSEX options), index funds and ETFs, MF SIP orders via StAR MF, IPO allotments, market-data feeds. Derivatives liquidity is not contractually sticky; it moves on expiry-day rules (the 2025 expiry swap showed this).

Value-chain map

Inputs:  SEBI licence + regulatory fees | Tech / colo hardware | Index IP (SENSEX) | Deutsche Börse data (to Dec-26) | Bank BGs to brokers (RBI)
            |
BSE:     Exchange (BOLT Plus) + BSE Clearing CCP + BSE Index Services + StAR MF/NPS + India INX/ICC ; 15% CDSL
            |
Members: ~600 brokers (discount brokers, prop desks, FPI custodian-brokers) | 50 AMCs, 84k distributors | 5,600+ issuers
            |
End users: retail option traders (11.2 m UCCs) | prop/HFT (~50% of notional) | ~650 FPIs | MF investors (293 m) | passive-fund investors

Where pricing power sits

LinePricing powerEvidence
StAR MFHigh>85-89% share; network leader
SENSEX index IP and licensingHighBenchmark since 1986; 200+ indices
ColocationHighThrottle charge revised up (Jul-25); order flow at ~20% of market rates
ListingHighPerpetual annual fees
OptionsModerate~31.5% premium share in a duopoly; yield ~8-9% below NSE; true-to-label caps slab pricing; no committed price rise
CashLow~32% of cash charges at special rates (Rs 20.8 cr of Rs 65.4 cr)
Ultimate price-setterRegulatorSEBI sets expiry days (one weekly per exchange from 20 Nov 2024; Tue/Thu from 1 Sep 2025), lot sizes, fees; MoF sets STT. Goldman estimated ~3 ppt share loss from the swap; share instead rose (26.8% Q3 FY26)

Competitive Position

Position: India's #2 exchange; #2 equity-options venue (~31.5% of premium, Q1 FY27 [Est.]); at parity or ahead on notional (45.4% Q4 FY26; 55.4% Apr-26). Near-absent in futures (~0.3%) and stock options; ~7% of cash. Largest listed-company count globally. Among the top-10 listed exchange operators by market cap (~US$14 bn at Rs 96.6/US$, 9 Oct 2026).

9.1 Industry structure

SegmentPlayersStructure
Equity cashNSE ~93%, BSE ~7%, MSE negligibleNear-monopoly (NSE)
Equity futuresNSE ~99.7%, BSE ~0.3%Monopoly
Index options (premium)NSE 68.5%, BSE ~31.5% (Q1 FY27)Duopoly; BSE gaining
Options (notional)BSE 45.4% (Q4 FY26), 55.4% (Apr-26)Parity
Commodity derivativesMCX ~95%+, NSE, BSE smallNear-monopoly
DepositoriesNSDL, CDSL (BSE 15%)Duopoly
ClearingNSE Clearing 91.2% of equity-derivatives cleared value; BSE Clearing ~8.8%; MCXCCLExchange-vertical
MF platformsStAR MF, NSE NMF-II, MF UtilitiesOligopoly; BSE leads
IFSC exchangesIndia INX, NSE IX (GIFT Nifty)Duopoly; NSE IX dominant

9.2 Size, growth, trends

9.3 Policy timeline

DateChangeEffect on BSE
Apr-2024Regulatory fee on notional, arrears + 15% interest~Rs 165 cr + GST one-off; recurring cost; stock -19%
Jul/Oct-2024True-to-label uniform charges (from 1 Oct 2024)Ended slabs; BSE ~Rs 3,250/cr vs NSE ~Rs 3,503/cr
20 Nov 2024F&O curbs: one weekly expiry per exchange, Rs 15 lakh lot, upfront premium, expiry ELMBankex/Sensex-50 weeklies dropped (14 Nov 2024)
May/Jun 2025Expiries restricted to Tue/Thu; NSE Tue, BSE Thu from 1 Sep 2025Stock -6%; feared loss did not materialise
Jul 2025SEBI interim order on Jane Street (~Rs 4,844 cr impounded)CEO: no specific impact seen
Sep 2025SEBI "thought process" on weekly to monthlyStock -4-4.5% (11 Sep 2025); not implemented
1 Feb 2026Budget STT hike (effective Apr-26)Hit the 15% lower circuit intraday at Rs 2,377.40 in the Sunday session; closed Rs 2,578.10 (-7.8%) (NSE bhavcopy)
1 Jul 2026RBI intermediary lending and BG norms (deferred from 1 Apr)Lagged hit to prop liquidity
3 Aug 2026CAS for F&O stocksAug ADTV Rs 18,700 cr (-26% MoM); Aug turnover Rs 32.2 lakh cr (lowest since Jun-25)
4 Sep 2026Reports of a SEBI review of derivatives-settlement rulesStock +4.5%
12 Sep 2026Settlement-price consultation (comments to 3 Oct)Options: blended or last-30-minute VWAP for expiry settlement
6 Oct 2026Reuters: SEBI likely to drop CAS for derivatives settlement for at least a year (VWAP instead); no circularStock +3.9% to Rs 3,305 (+8.5% over 5-6 Oct)
SECC RegulationsOwnership caps; 15% depository cap; SGF; MII profit-transfer rulesNo promoter; CDSL capped

9.4 Market share

PeriodNSE premium shareBSE premium shareBSE notionalADPT cross-check
FY2496.86%~3.1%n.a.-
FY2587.43%~12.6%n.a.8,978 / (8,978 + 62,449)
Q1 FY2678.63%~21.4%n.a.15,005 / (15,005 + 55,514)
Q2 FY26-24.4% (HSIE)38% (Sep-25)-
Q3 FY26-26.8% (Jan-26 ~30%)--
FY2674.71%~25.3%-19,523 / (19,523 + 57,662)
Mar-26 / Q4 FY26-26.1% forum / 27.5% BSE43.6% / 45.4%-
Apr-26--55.4% (BSE led)-
Undated (article 2 May 2026)~66%~34%--
Q1 FY2768.48%~31.5%-29,615 / (29,615 + 64,352)
Jul-26 (forum)-~33% (contract 52%)--
Early Aug-26 (one week, blog)-37.1% [unverified]--
BSE share of equity-options premium (%) [Est., 100% minus NSE RHP share] 20%40% 3.112.621.425.327.531.5 FY24FY25Q1 FY26FY26Q4 FY26Q1 FY27

Other segments: cash ~7% (NSE 93.05% Q1 FY27, 92.99% FY26, 93.57% FY25); futures ~0.3% at zero fees; stock options negligible ("difficult"; 200+ undifferentiated underlyings; BSE fee 0.005% vs NSE 0.0355%); monthly/far-week ~5-6% of contracts.

9.5 Peer comparison (~9 Oct 2026)

CompanyMcap (Rs cr)FY26 revenueGrowthEBITDA %PAT %FY26 PATRoEP/E TTMMcap/EBITDA; EV/EBITDAMoat
BSE1,35,144 (Rs 3,313)5,124 sales; 4,834 ops+59.5% / +63.5%67.9% (co. 64%)48.5%2,487 (+88.1%)46.0%47.7x (Screener TTM EPS Rs 69.55)38.6x; ~37xLicensed duopoly, Sensex, listing, StAR MF, lower-cost options
NSE~4,33,000 (Rs 1,749.85; 247.5 cr sh)18,713 total income-2.4%77.6% (FY25 83.5%)55.1%10,302 (-15.5%)33.2%42.0x FY26; ~34.7x Q1 ann.29.8x; ~25x Q1 ann.Nifty/BankNifty liquidity, 93% cash, 99.7% futures, 91% clearing, GIFT Nifty, NSE Indices
MCX83,892 (Rs 3,290)2,302+106.8%71.3%57.9%1,332 (+137.9%)56.3%54.4x (TTM 1,542)44.3x; ~42.7x net of Rs 2,949 cr inv.Commodity near-monopoly
CDSL26,269 (Rs 1,257)1,145+5.8%50.8%39.7%455 (-13.5%)24.5%55.9x (TTM 470)44.5xDepository duopoly
CAMS16,557 (Rs 666)1,516+6.6%45.1%31.1%472 (+1.5%)36.3%33.7x (TTM 491)23.3x~2/3 MF RTA share
KFin Tech14,625 (Rs 846)1,301+19.2%40.7%26.4%344 (+3.3%)21.6%42.8x (TTM 342)27.2xRTA duopoly; international

Screener consolidated for BSE, MCX, CDSL, CAMS, KFin (recomputed; Screener display KFin 41.7x, CDSL 55.8x). NSE from RHP restated. NSE FY26 PAT drop mainly cost-driven (check RHP one-offs). NSE Q1 FY27: total income Rs 5,252 cr, EBITDA Rs 4,332 cr (82.5%), PAT Rs 3,120 cr. BSE EV excludes restricted funds; own free funds ~Rs 5,000-5,500 cr [Est.]. Global: CME, ICE, HKEX, Deutsche Börse ~20-30x P/E, ~15-22x EV/EBITDA. DAM Capital: NSE IPO priced at an 18.6% P/E discount to BSE (42.9x vs 52.7x FY26 EPS).

9.6 BSE vs NSE operating KPIs (Q1 FY27)

KPIBSENSE
Options premium share~31.5%68.48%
Options revenueRs 1,155 crRs 2,744 cr
Total transaction chargesRs 1,327.7 crRs 3,622.7 cr (cash 502, futures 367)
Cash transaction chargesRs 65.4 crRs 502.3 cr
Cleared value share~8.8%91.2%
EBITDA margin66.8% (on rev. from ops, incl. SGF)82.5% (on total income)
PATRs 873 crRs 3,120 cr
Implied yield per Rs cr premium per side~Rs 3,197~Rs 3,498
Fee pool vs share42% of NSE fees on 46% of NSE premiumBSE price ~8-9% lower

9.7 Strengths and weaknesses vs each peer

PeerBSE strengthsBSE weaknesses
NSEMomentum (3% to 31.5% in ~3 yrs; led notional Apr-26); price challenger (stock options 0.005% vs 0.0355%, zero futures, order flow ~20%); regulator prefers "two strong exchanges"; hosts NSE's listing; StAR MF; debt-free, Rs 1,773 cr dividends and Rs 653.5 cr buybacks (deck)Liquidity gap (93% cash, 99.7% futures, 91% clearing at NSE); single product (Sensex weekly) vs Nifty, BankNifty, FinNifty, MidcapNifty, stock F&O; expiry and prop concentration (two Sensex puts ~Rs 3.13 lakh cr turnover one Tuesday); margin gap 66.8% vs 82.5%; data scale; valuation premium lost after NSE listing
MCXLarger, diversified revenue (Rs 5,124 vs 2,302 cr); lower P/E (~48x vs 54x) and EV/EBITDA (~37x vs 43x)MCX margins (71.3%/57.9%), RoE 56.3%, growth +106.8%; uncontested monopoly. Bernstein prefers MCX (Outperform, TP 3,830)
CDSL~4.5x revenue; higher margins and RoE; +59.5% vs +5.8%; lower P/ECDSL revenue more annuity-like; BSE capped at 15%, cannot raise stake
CAMS / KFinMuch higher margins and growth; complementary (StAR MF is the rail, RTAs process)Contractual AUM-linked annuities; lower P/E (34x, 43x) and EV/EBITDA (23-27x); StAR MF only ~4.7% of BSE revenue

9.8 Barriers, Porter's Five Forces, moat

Barriers (high): SECC 2018 recognition, minimum net worth (Rs 100 cr exchange; Rs 300 cr clearing corporation), fit-and-proper tests, ownership caps, SGF capitalisation; liquidity network effects (BSE's own 2010-11 and 2015-16 pushes failed); tech capex (microsecond matching, colocation, DR/PR, surveillance; 80+ systems being replaced); clearing capital; entrenched benchmarks (Sensex since 1986, Nifty). Only live entrant: MSE.

ForceIntensityRationale
New entrantsLow-MedHigh regulatory/capital/liquidity barriers; MSE recapitalised but sub-scale
Buyer powerMed-HighProp/HFT price-sensitive; discount brokers control retail routing; SEBI regulates charges
Supplier powerLow-MedTech and index in-house; DB data ends Jan-27
SubstitutesMediumMonthly tenors if forced; GIFT Nifty/offshore; MFs, commodities; NSE options
RivalryHighHead-on duopoly on expiry days, fees, products, FPI onboarding; NSE has more liquidity and a listed currency
Regulator (sixth force)Very HighSEBI: expiry days, products, fees, SGF, profit-sharing; MoF: STT; RBI: broker funding
Moat: Moderate, regulation-dependent. Durable parts are listing, StAR MF, the Sensex brand, clearing and licences (~15-20% of revenue). Less durable is the options share, which rests on the expiry-slot allocation, an ~8-9% fee discount and prop behaviour. Monthly expiries, a common expiry day or a 0-DTE cap could erase much of it. The moat has strengthened as members, FPIs and UCCs onboarded. Pricing: BSE bought share with a modest discount rather than deep cuts. Revenue tracks volume at a fixed card (Q1 FY27 Rs 1,328 cr vs Q4 ~Rs 1,311 cr). ~53-54% of opex is volume-linked (Rs 283.1 cr of Rs 536.8 cr = 52.7%).

9.9 SWOT

Strengths: debt-free; RoE ~46%, RoCE ~60%; FY26 CFO Rs 3,104 cr vs PAT Rs 2,487 cr; 14 record quarters; ~31.5% premium share; Sensex brand; largest listed base; StAR MF; in-house tech, index, clearing; 15% CDSL (~Rs 3,940 cr); India INX; margin 51% to 64%.
Weaknesses: ~74% of operating revenue from equity derivatives, essentially one weekly contract; weak in cash (7%), futures (0.3%), stock options; cost base above NSE with a lower price (~16 pp margin gap Q1 FY27); thin monthly liquidity; prop/HFT dependence; Rs 40 cr ICCL provision.
Opportunities: double-digit cash share by CY2027; FPIs 650 to 800; Focused IT plus two more indices; colo and order-flow repricing; direct data from Jan-27; StAR NPS; EGRs and bullion (IIBH); corporate bonds; 250+ IPO pipeline; likely CAS rollback for derivatives settlement; interoperability (NSE members trading Sensex).
Threats: weekly-to-monthly or common expiry; further STT; RBI broker-funding curbs; CAS-type microstructure changes; NSE fee cuts or product response; regulatory fee changes; prop/HFT exit after Jane Street-type enforcement; market downturn; de-rating post NSE listing.

Risks & Red Flags

10.1 Risk register

#RiskCategorySeverityExplanationMitigant
1Weekly to monthly expiries or 0-DTE capRegulatoryHighSensex weekly is the core earner; floated Sep-25 (stock -4-4.5%); BSE monthly share only ~5-6%, hits BSE harder than NSENot implemented as of Oct-26; consultation-led; monthly 5x contracts, 10x premium; IT index
2Expiry reallocation / common expiry dayRegulatoryHighShare tied to slot (Tue to Thu Sep-25); a common expiry favours NSE's deeper bookThursday fixed by SEBI; share rose after move
3STT hikes, fiscal leviesRegulatory/MacroHighOptions 0.10% to 0.15%, futures 0.02% to 0.05% (Apr-26); hit the 15% lower circuit intraday on 1 Feb 2026 (closed -7.8%)Q1 FY27 premium +97% YoY; futures immaterial for BSE
4RBI BG/intermediary-lending norms (1 Jul 2026)Regulatory/FinancialMed-HighRaises prop/HFT funding cost; legacy BG run-off lags; Jefferies: 10-12% of options turnover, ~10% of earnings; prop share of F&O notional fell to 54.7% in Aug-26, the lowest since Dec-22 (Bloomberg, 22 Sep 2026)Impact "negligible" so far; 600+ members
5CAS and settlement-price microstructureRegulatory/ExecutionMediumAug ADTV Rs 18,700 cr (-26% MoM); turnover Rs 32.2 lakh cr; Q2 FY27 at risk: Nuvama (6 Oct preview) puts Q2 FY27 index-options ADPT at ~Rs 22,500 cr/day (-23.9% QoQ) [broker estimate]; option writers exiting (forum)Reuters (6 Oct): CAS likely dropped for derivatives settlement for at least a year, VWAP instead; timing unconfirmed, no circular
6NSE response and NSE listingBusinessHighNSE (82.5% margin, Rs 10,302 cr PAT) can match the ~8-9% discount; listed at ~35-42x vs BSE ~48x; splits flowsOnboarding (members 200 to 600; FPIs 650); lower stock-option and futures fees; products
7Revenue concentrationBusinessHigh~74% from equity derivatives, mostly one contract; prop/HFT dominateCash, StAR MF, listing, data, colo, bonds, NPS, EGR
8Enforcement against large prop/FPIsRegulatory/BusinessMediumJane Street precedent (Jul-25); Sensex expiry scrutinyBroad base; surveillance
9Regulatory fee and SGF escalationFinancial/RegulatoryMediumArrears ~Rs 68.6 + 96.3 cr + GST; Q1 FY27 regulatory Rs 192.8 cr (+66%); SGF scales with risk~53% of opex volume-linked; margin 67%; SGF step-down to 3.5%
10Market cycle / volumeMacroHighTurnover-driven revenue; industry notional -16% in 2025Annuity streams ~15-20%; balance sheet
11Technology outage / cyberExecutionMediumMessages ~100 mn to 18 bn/day; 80+ systems replaced; clearing segregation; SEBI penalises outages; CTO churnCapacity 5x; DR/PR; tech Rs 60.8 cr/qtr
12Clearing default / ICCL credit lossFinancialMedium~Rs 40 cr ECL on old Rs 80 cr NSE receivable (inter-CCP)Core SGF ~Rs 1,202 cr; margining; default waterfall
13Treasury/MTM volatilityFinancialLowInvestment income Rs 135.2 cr (+71%) on MTM; clearing-fund treasury fallingSmall vs EBITDA
14Data transition (DB ends 1 Jan 2027)ExecutionLow-Med~4-5% of revenue; licensing disruptionDirect control, better pricing
15Primary-market slowdownMacroLow-MedBook-building Rs 10.1 vs 19.0 cr; listing -24% QoQ Q4250+ IPO pipeline; recurring annual fees
16Valuation de-ratingFinancialHigh~48x TTM, ~20x P/B; -25% from high; history of sharp falls (-19% Apr-24, -15% intraday / -7.8% close 1 Feb 2026, -6% Jun-25)Earnings growth (Q1 PAT +62%); dividends
17SEBI-nominated board, SECC constraintsGovernanceLow-MedProfit-transfer/SGF mandates limit capital allocation; auditor rotationRoutine; unmodified review
18Key person / successionGovernanceLow-MedTurnaround tied to CEO Ramamurthy (since 4 Jan 2023, per FY26 AR); term ends by Jan 2028; KMP tenures need SEBI approvalSEBI-approved succession; new EDs
19Litigation and taxRegulatory/FinancialLow-MedContingent Rs 330.2 cr (vs 239.1); IT 135.0, indirect 59.3, claims 135.7, guarantees 0.2; standalone 207.9~4% of net worth; no adverse award known
20ESG / social licence of retail F&OESGMedium~90% of individual traders lose; political backlashInvestor education; SEBI safeguards
21Ownership caps on strategic stakesRegulatoryLow15% CDSL cap (forced 4.54% sale Jun-23)Value can be unlocked
22GIFT City competitionBusinessLowNSE IX dominates via GIFT Nifty; India INX loss-makingIIBH stake to 20%

10.2 Red-flag checklist

Red flagStatusEvidence
Rising debtNoNil FY22-FY26
Margin deteriorationNo (watch Q2)Q1 FY27 66.8% vs ~65%; Q2 FY27 likely hit by CAS (Aug -26% MoM); QoQ transaction charges +1%
Auditor concernsNoUnmodified; rotation routine
Related-party abuseNo evidenceIIBH Rs 50.5 cr at book; SEBI oversight
Promoter selling / pledgeN/ANo promoter; FII 21.32% (7.9% Sep-23); LIC 5.57%
DilutionNoBonus non-dilutive; buybacks Rs 640-653.5 cr (discrepancy)
Customer lossWatchProp/HFT concentration; RBI norms; enforcement
Litigation / taxLow-MedRs 330 cr contingent; notional-fee precedent
Commodity/currency/rateLowRates affect treasury/MTM only; no FX debt
Tech obsolescenceMediumLarge modernisation; outage penalties
Key-personLow-MedCEO-led turnaround
Earnings qualityWatchOne-offs in each of the last three quarters; Q1 FY27 PAT growth QoQ all below the operating line
Retail churnNoteShareholders 12.9 lakh (Sep-25) to 9.99 lakh (Jun-26)
Capital allocationWatchPayout 72-74% (FY22-23) to 16% (FY26); retail questions Rs 10 dividend

10.3 Monitorables (next 2-3 quarters)

  1. Final SEBI circular on CAS / derivatives settlement (Reuters 6 Oct: rollback likely; timing unconfirmed).
  2. Monthly premium share for Sep/Oct-26; Q2 FY27 vs Q1 base (Rs 1,566 cr revenue, Rs 873 cr PAT).
  3. Any SEBI paper on expiry frequency.
  4. NSE pricing after listing.
  5. RBI BG roll-off.
  6. Cash share vs double-digit target.
  7. Colocation and order-flow repricing.
  8. Data revenue after Jan-27.
  9. Budget FY28 STT.

Concall Highlights & Guidance

Every quarterly call since Q1 FY25 (nine calls, Q1 FY25 to Q1 FY27). Participants: MD & CEO Ramamurthy, CFO Deepak Goel, Head of IR Anand Sethuraman. Management gives no numerical financial guidance. Tone moved from expansive (FY25 to Q3 FY26), to celebratory and self-critical (Q4 FY26), to guarded and selectively evasive (Q1 FY27). Primary transcripts for Q4 FY25 to Q1 FY27 were read.

11.1 Quarter-by-quarter log

Quarter / callKey numbersManagement's words and themesTone
Q1 FY27 - 4 Aug 2026 (transcript filed 10 Aug)Total income Rs 1,707 cr; rev. ops Rs 1,566 cr (+63%); txn Rs 1,328 cr (+80%); opex Rs 520 cr (+56%, 54% volume-linked); EBITDA Rs 1,046 cr (67%); PAT Rs 873 cr (51%); ADPT Rs 29,615 cr (+96% per mgmt; +97% computed); cash ADTV Rs 9,955 cr; StAR MF 23.4 cr txns, Rs 73.3 cr; colo Rs 51 cr; 25.8 cr accounts (+3.5 cr in 12m; 11 states >1 cr investors); 610+ members, ~650 FPIs; Rs 6.2 lakh cr raised; SME 750+"Best quarter on record", 14th record. Macro: Sensex corrected near 72,000; DIIs Rs 5 lakh cr in 7 months vs FPI outflows Rs 3.6 lakh cr. Monthly options 5x/10x, "progress but not yet where we want to be". Cash target "meaningful double-digit" by start of CY2027. Focused IT launched; 2 more indices approved; 16 new indices. Pipeline: corporate bonds, data, StAR NPS, electronic gold. DB data partnership ends 1 Jan 2027. ICCL renamed BSE Clearing. Tech: 80+ systems, clearing segregation, DR/DC; depreciation lower on WDV reset. Colo 500 racks for 1.5 yrs; order flow ~20%, "reconsidered at the right time". NDTV Profit awards (Derivatives Exchange, Index Provider, Wealth Creator)Guarded
Q4 FY26 - 7 May 2026 (filed 13 May)Rev. ops Rs 1,563.5 cr (+85%, +26% QoQ); txn Rs 1,311 cr; EBITDA Rs 1,040.7 cr (67%); PAT Rs 797.3 cr. FY26: rev. ops 4,834; txn 3,795; other op. 349; opex 1,755 (53% volume-linked); EBITDA 3,079 (64%); PAT attrib. 2,497 (+88%); dividend Rs 10, payout Rs 412 cr (+30%; +67% excl. FY25 special)"Unhappy" with 7-8% cash share; SOR approvals "pending for over six months at rival exchanges". "Expanding and strengthening participation". Brokers 446 to 587; FPIs 100 to 520 (target ~800); racks 300 to 500; monthly 5x, index futures 3x. Expiry concentration "significantly fallen"; "we don't have openings in second month and third month". Commodities: not "me-too", no timeline. SGF: "touched the threshold... reducing the contribution... from 5% to 3.5%". Tech budget ~Rs 300 cr "almost going to be doubling"; exploring a Mumbai land plot. Pricing (Datta, Jefferies): no cut to IPF; prices "subject to revisions and review... driven by our own estimate". CFO: Rs 80 cr "old outstanding from NSE", ECL taken. "Highest-ever performance in its 150-year history"Celebratory, self-critical
Q3 FY26 - 9 Feb 2026 (filed 13 Feb)Rev. ops Rs 1,244 cr (+62%); PAT Rs 601.8 cr (+174% vs Rs 219.7 cr); EBITDA Rs 732 cr (59%); HSIE reported 62.5% vs 64.7%, adj. 65.6%; adj. PAT ~Rs 650 cr; 772 cr contracts, Rs 784 cr deriv. revenue (+25.6% QoQ); ADPT Rs 19,459 cr (+30%); premium share 26.8% vs 24.4% (~30% Jan); UCCs 9.5 mn; cash -3.7% QoQ, ADTV Rs 7,645 cr; StAR MF Rs 72.5 cr, 87.4%; 99 listings Rs 97,657 cr; colo Rs 48 crGeopolitics and tariffs; STT impact "difficult to anticipate"; Jan-26 premium ~Rs 30,000 cr/day (+50% vs Dec ~Rs 20,000 cr); BSE charges ~Rs 250/cr less than NSE (forum); SGF ~150%; Core SGF Rs 1,202 cr (Jan-26); costs QoQ: employee +31.7%, SEBI fees +27.5%, other +18.2%, clearing +17.5%, tech +12.7%; TPS 9x. Stock hit an ATH of Rs 3,188.40 intraday on 10 Feb (+6.8%); closed Rs 3,174.20 (+6.3%)Confident
Q2 FY26 - 11 Nov 2025 (filed 17 Nov; deck revised 20:18 after 18:06)Total Rs 1,139 cr (10th record); rev. ops Rs 1,068 cr (+44% call / +31% Screener); txn Rs 794 cr (+57%); treasury Rs 42 cr (-32%); other op. Rs 93 cr (+82%); investment Rs 65 cr; opex Rs 410 cr (51% volume-linked); EBITDA Rs 680 cr (64%); PAT Rs 558 cr (+61%); premium share 24.4%New SGF policy 5% of transaction revenue monthly from Sep-25 (Rs 10.6 cr; SGF Rs 1,159 cr Oct-25). Colo Rs 46 cr vs Rs 27 cr (throttle from 1 Jul 2025). ICCL clearing income ~Rs 32 cr; TPS 3,000 to 27,000. StAR MF Rs 69.7 cr, 20.1 cr txns; cash ADTV Rs 7,968 cr; passive AUM Rs 2.54 lakh cr; capex/CWIP ~Rs 313 cr H1. NSE lot cuts/GIFT 0-DTE: will "consult the market". Lower volatility compressed margins (fee on premium, SEBI fee on notional). Retail and DII offset FII outflowsExpansive
Q1 FY26 - 7 Aug 2025 (filed 13 Aug)Total Rs 1,045 cr; rev. ops Rs 958 cr (+59%); txn Rs 737 cr (+84%); treasury Rs 45 cr (-27%); other op. Rs 70 cr; investment Rs 79 cr; opex Rs 359 cr (incl. D&A; 48% volume-linked); EBITDA Rs 626 cr (65%); PAT Rs 539 cr (+104%); no SGF; SGF Rs 1,144 crParticipants: HFT ~35%, retail ~25-26%, rest prop. Non-current-week 2-2.5%. Expiry swap: BSE "conceded Tuesday"... "if I am getting it on a platter, why should I not take it?"; "time will tell". Jane Street: "not seeing any specific impact... more of the market factors". F&O framework "not... devastating... achieved the purpose". Colo 350 racks, 75-80% used. Common contract note live 27 Jun 2025. 528 members, 7.9 mn UCCs, 330 FPIs. Index Services renamedExpansive
Q4 FY25 - 6 May 2025 (filed 9 May)FY25 total Rs 3,236 cr (+103%); rev. ops Rs 2,957 cr (+116%); txn Rs 2,030 cr (+186%); treasury Rs 218 cr; other op. Rs 220 cr; EBITDA Rs 1,500 cr (51%; 1,590 / 54% ex-SGF); PAT Rs 1,326 cr (+70%); DPS Rs 23 (Rs 18 + Rs 5 special for 150th year; Rs 316 cr; 28.4%); Q4 premium ADTO Rs 11,782 cr; cash ADTV Rs 7,766 crQ3 FY25 SGF ~Rs 200 cr (BSE 53, ICCL 147); ICCL reversed; Rs 37.6 cr to NCL; net Rs 109 cr reversal. Sensex "no longer an expiry day product". ~300 racks, 200 more. Pending: gross trading limits, clearing segregation, common contract note (postponed 4x). BSE Institute sold to FinX Rs 16.9 cr. 2:1 bonusExpansive
Q3 FY25 - 6 Feb 2025Expenses Rs 533 cr, OPM 31%, PAT Rs 219 cr"Regulatory changes raised Core SGF expenses"Defensive on cost
Q2 FY25 - 12 Nov 2024Revenue Rs 813 cr, PAT Rs 346 cr"Regulatory changes may affect derivatives volumes, but diversified revenue streams..."Confident, hedged

11.2 Reconciliation notes (company vs Screener)

11.3 Analyst Q&A that reveals hidden risk

CallAnalystQuestionAnswer / hidden risk
Q1 FY27Aditya Vikram (DB Securities)Other expenses fell QoQQ4 ~Rs 40 cr provision at clearing sub (NSE receivable per Q4 transcript); CEO declined steady-state comment
Q1 FY27Swarnab Mukherjee (361 Capital)Colocation splitCould not split Rs 51 cr; deferred. Limited disclosure; unquantified pricing upside
Q1 FY27Amit Chandra (HDFC Securities)Monthly options, FPI share, premium-notional gap, new cash mechanismBSE "does not track market share as a primary metric"; too early on mechanism launched two days earlier (CAS; GuruFocus: low participation)
Q1 FY27Supratim Datta (Jefferies)Is pipeline only options?Long list with no sizing or timelines; diversification aspirational
Q1 FY27Prayesh Jain (Motilal Oswal)Cash share, stock optionsStock options "a long-term aspiration"; single-stock F&O effectively ceded
Q1 FY27Devesh Agarwal (IIFL Capital)RBI + STT effect"Hard to isolate"; "remnant bank guarantees" mean the full impact lags; his own estimate is a 10-15% volume decline
Q1 FY27Madhukar (J.P. Morgan)Tech up, depreciation down, other income doublingOther income Rs 67 cr to Rs 140.7 cr on bond MTM reversal; WDV reset. Earnings-quality risk
Q4 FY26Supratim Datta (Jefferies)Pricing vs NSENon-committal; price rise flows to EBITDA, but the discount is a share lever
Q4 FY26-SGFStep-down 5% to 3.5% (secondary "2.5%" corrected)
Q3 FY26-STT"Difficult to anticipate"; one-offs ~7% of PAT

11.4 Guidance vs outcome (credibility check)

Said (when)WhatOutcomeVerdict
Q3 FY26500 racks by Q4 FY26500 deployedDelivered
Q3 FY26STT impact "difficult to anticipate"Q1 FY27 ADPT ATH; impact "minimal"Hedge conservative
Q3 FY26Longer-dated via institutions5x/10x; FPIs 100 to 520 to ~650; brokers 446 to 587 to 610+Delivering, small base
Q4 FY26FPI target ~800~650 (+130 in a quarter)In progress
Q4 FY26"Unhappy" with cash 7-8%Hard target double-digit by start CY2027Open, falsifiable
Q4 FY26Commodity derivatives "not me-too"No update; Focused IT insteadSlipping
Q4 FY26SGF 5% to 3.5%Q1 FY27 Rs 25.9 cr vs Rs 20.7 cr Q4; base unclearPartly verified
Q2 FY25SEBI curbs may hurt volumesFY26 derivatives revenue +121%; ADPT +117%Fears overdone
HSIE Feb-26FY27E revenue +19.8%, margin 65.3%Q1 annualised ~Rs 6,264 cr (+30%); 67%Ahead of street
Q1 FY27Colo pricing "to be reconsidered"PendingWatch
Q1 FY27DB exit, direct from 1 Jan 2027PendingWatch

11.5 Themes and contradictions

Recurring themes: "record quarter" (14 straight); participation over volume; tech modernisation; DII vs FII flows; SME/IPO pipeline; StAR MF dominance (87.4%); regulatory overhang (SEBI F&O FY25, STT FY26, RBI FY27).
Contradictions: (1) Market share "not a primary metric" while premium share went 24.4% to 26.8% to ~30%, then 26.1% in Mar-26 (forum); (2) colocation 20 vs 80 racks; (3) record cash ADTV yet share flat at 7-8% (market-wide growth); (4) revenue definitions (Rs 1,045 vs Rs 958 cr; Rs 3,393 cr / 48% EBITDA claim); (5) three of three recent quarters had non-recurring items.

11.6 Retail forum read (ValuePickr, 1,150+ posts)

DatePosterStancePoint
1 Mar 2026ashwindBullJan-Feb derivatives ~Rs 719 cr in two months vs Rs 784 cr in Q2; Q4 >Rs 1,000 cr (it was >Rs 1,100 cr)
7 May 2026AJ41 (holder)Bull~53x normalised forward at Rs 1.61 lakh cr "reasonable"; FY27 revenue ≥Rs 6,000 cr, PAT Rs 3,000 cr; why only Rs 10 dividend?
7 Jul 2026ashwindCautiousQ1 F&O +2.4% QoQ; monthly premium peaked in April; growth to "moderate or stabilise"
21 Jul 2026MRINAL_MOHANTIBullDiversification insulates BSE post NSE listing
2 Aug 2026ashwindCautious holderJul premium Rs 17.39 vs 18.43 lakh cr; ~Rs 25,401 cr/day (~15% below Q1); share ~33%, contracts 52%; business "maturing"
4 Aug 2026HighCAGRBullRecord Rs 1,155 cr derivatives; IIBH, Focused IT, StAR NPS
8 Aug 2026rshankv (writer)Bear on volumesStopping option writing until CAS removed; STT collections ~Rs 57,000 cr/yr at risk
3 Sep 2026karanshah137NeutralShares CEO CNBC-TV18 interview (CAS, RBI BGs, NSE listing)
23 Sep 2026tbhaveshBullSensex volumes up if NSE members trade Sensex (interoperability)
7 Oct 2026MattiasFromInquiryPremium days ~Rs 45,000 cr and ~Rs 78,000 cr; rebound? [unverified]

Retail debates: pricing-led vs product-led share (BSE ~55% of F&O notional Apr-26 via lower fees); premium vs notional share; CAS and writer exodus; NSE listing as drain vs validation; 50-55x "reasonable" vs NSE ~43x on 3x revenue; low dividend. Reddit/X/Morningstar not accessible. Media: "BSE shareholders in a fix: two downgrades in two days". Anand James (Geojit) technical target Rs 4,200 (year ambiguous; unverified).

11.7 Price-moving events (last 12 months)

DateEventReaction
26 Sep 2025Low Rs 2,021.50 on weekly-expiry fears-
Nov 2025Q2 FY26 beat+7%
1 Feb 2026Budget STT hikeHit the -15% lower circuit intraday (Rs 2,377.40); closed Rs 2,578.10 (-7.8%)
9-10 Feb 2026Q3 FY26 (PAT +174%)10 Feb intraday high Rs 3,188.40 (+6.8%); closed Rs 3,174.20 (+6.3%)
Apr 2026BSE overtakes NSE on notional (~55%)Rally
7-8 May 2026Q4 FY26; Avendus downgradeRs 3,985 intraday 7 May; Rs 3,905
27 May 2026All-time highRs 4,446.80
Jun 2026NSE DRHP; 15-20% discount expected~Rs 4,026 (19 Jun)
3 Aug 2026CAS liveVolume fears
4-5 Aug 2026Q1 FY27Rs 3,618 (+1.2%); target cuts
17 Aug 2026Jefferies downgrade-4.8% to Rs 3,282.90
18 Aug 2026Nuvama downgradeFour-month low Rs 3,235
4 Sep 2026SEBI settlement review+4.5%
9 Sep 2026Bernstein Underperform-3.7% to Rs 3,268
11 Sep 2026NSE price band Rs 1,700-1,785-3.4% to Rs 3,193; -10.4% month
21 Sep 2026No company-specific trigger identified-3.2% to Rs 3,161
24 Sep 2026NSE lists; Macquarie Outperform-1% intraday at NSE debut; closed -2.7% at Rs 3,183.80
29-30 Sep 2026Nifty 50 inclusion day; Goldman/BNP bulk sale29 Sep +3.3% to Rs 3,200 on ~3.0 cr shares; 30 Sep -3.4% to Rs 3,092 (intraday low Rs 3,075)
1 Oct 2026Trading window closed ahead of Q2-1.5% to Rs 3,046
5-6 Oct 20265 Oct: no specific trigger identified. 6 Oct: Reuters CAS-rollback report; Nuvama Q2 preview (Hold, Rs 3,240)+4.4% to Rs 3,179.60, then +3.9% to Rs 3,305 (+8.5% in two sessions)
7 Oct 2026Jefferies TP Rs 2,840 (Investing.com only)Closed Rs 3,356 (+1.5%)
9 Oct 2026Master Capital technical Buy (Rs 3,650-3,800; stop Rs 3,050)~Rs 3,304 intraday (-0.9%)

Growth, Outlook & Valuation

Order book: not applicable. An exchange has no order book, backlog or book-to-bill. ~85% of revenue from ops (transaction charges, Q1 FY27; 77% in Q3 FY26) is non-contracted and driven daily by premium turnover x realisation. Revenue visibility is low.

12.1 Revenue-visibility proxies

StreamRun-rateVisibility
Transaction chargesRs 1,328 cr/qtrLow - volume, volatility, regulation
Listing feesRs 119 cr Q4 FY26; Rs 88.1 cr Q1 FY27 (annual Rs 63.0 cr)High (annual); IPO fees pipeline-driven
StAR MF~Rs 73 cr/qtr, +20-28% volumesHigh
Colocation~Rs 51 cr/qtrHigh; pricing upside
Data and indexRs 67.6 + 36.6 cr FY26Medium-high; direct from Jan-27
Treasury on clearing funds~Rs 40 cr/qtrMedium; rate-linked
Forward indicatorsIPO pipeline 250+ (~Rs 1.75 lakh cr); SME 750+; FPIs 650 to 800; UCCs 9.5 mn (Dec-25) / 11.2 mn; accounts 25.8 cr; Focused IT + 2 approved indices; 610+ members; 83,280 distributors-

12.2 Expansion, products, catalysts

ItemStatus / timing
Technology and capexTech budget ~Rs 300 cr "almost doubling"; FY26 capex Rs 515 cr; 80+ systems; DR/DC; clearing segregation; possible Mumbai land plot
Colocation500 racks (~1.5 yrs); further capex implied; order-flow and rack repricing
ProductsFocused IT derivatives (May-26); 2 more indices; broader index under consideration; StAR NPS (Apr-26); MSCI agreement to explore F&O on MSCI indexes in India, subject to regulatory approval (19 Aug 2026); corporate bonds; electronic gold reserves; commodity derivatives (no timeline)
DataIn-house global licensing from 1 Jan 2027
BullionIIBH stake to 20% (Rs 50.50 cr)
Short-term catalysts (12m)Q2 FY27 results (board date not intimated as of 9 Oct; trading window closed 1 Oct; in prior years the intimation came 16-23 Oct for meetings on 11-12 Nov). Test: whether ADPT held >Rs 25,000 cr/day; Nuvama estimates ~Rs 22,500 cr/day [broker est.]. SEBI CAS decision (Reuters 6 Oct: rollback likely; timing unconfirmed); Sep-26 shareholding (~21 Oct); RBI BG run-off (H2 FY27); cash-share milestone (early CY27); Budget FY28 STT; SEBI expiry-frequency paper risk
Long-term drivers (3-5y)Financialisation (25.8 cr accounts; DIIs Rs 5 lakh cr in 7 months); industry growth ~12%/yr (Macquarie); BSE revenue CAGR ~16% FY26-30E; margin to ~70% by FY30; non-transaction revenue; FPI onboarding

12.3 Consensus estimates

SourceFY26AFY27EFY28ENote
S&P consensus revenue (Rs cr)4,834 (ops)~6,350 (5,780-7,530)~7,310-
S&P consensus EPS (Rs)60.6176.98 (64.60-85.30)88.83+27% then +15%
P/E at Rs 3,31354.7x43.0x37.3x-
HSIE (Feb-26) revenue growth+58.7%+19.8%+15.9%EBITDA margin 64.5/65.3/66.0%; derivatives Rs 3,000/3,700/4,400 cr; core PAT CAGR FY25-28E 35.8%
ICICI Securities PAT (Rs cr)-3,2903,810EPS cut 14%/9% (Aug-26)
MacquarieEBITDA margin 65.7%--Revenue CAGR ~16% FY26-30E; margin ~70% by FY30
3-year street forecast---Revenue CAGR 16.7%, EPS CAGR 18.3%

12.4 Brokerage coverage (latest per house; implied vs Rs 3,310 reference print)

#House (analyst)RatingTarget (Rs)DateImpliedPath / basis
1PL CapitalBuy4,8505 Aug 2026+46.5%Initiated 18 Jun 2026 at Rs 4,014.5; 49x FY28E (from 50x)
2MacquarieOutperform (init.)4,00024 Sep 2026+20.8%40x FY29E (+1 SD over 3-yr avg)
3JPMorganOverweight (upgrade)3,95015 Sep 2026+19.3%Neutral 4,330 to 4,090 (5 Aug) to OW with cut; reason not public (valuation-led, inferred)
4UBSNeutral4,5005 Aug 2026+36.0%Looks stale
5NuvamaHold (downgrade)3,2406 Oct 2026 (reiterated; downgrade 18 Aug)-2.1%Buy 4,570 to 4,090 (45x Jun-28E + CDSL) to Hold 3,240; Hold reiterated in 6 Oct Q2 preview
6Motilal OswalNeutral3,9004 Aug 2026+17.8%2,250 (Oct-25), 2,800 (Nov-25), 4,400 (May-26), 3,900 (40x FY28E)
7Jefferies (Supratim Datta)Underperform2,8407 Oct 2026-14.2%Hold 2,790 to 2,930 to 2,850 to 3,050 to 3,330 to 3,620 to 3,440 to 3,520 to U/P 2,940 (17 Aug) to 2,840 (Investing.com only)
8Bernstein (Manas Agrawal)Underperform (init.)2,8209 Sep 2026-14.8%~32x FY28E; street low
9HDFC SecuritiesAdd3,85030 Sep 2026+16.3%3,310 (Feb-26; 42x core FY28E + CDSL + net cash ex-SGF)
10Haitong Internationaln.d.4,060Aug 2026+22.7%-
11Avendus SparkAdd3,950Aug 2026+19.3%Buy to Add 4,100 (8 May)
12CentrumNeutral3,940Aug 2026+19.0%2,701 to 3,331 (Feb-26; 42x FY28E)
13360 ONEHold3,765~10 Aug 2026+13.7%-
14ICICI SecuritiesHold3,5306 Aug 2026+6.6%Hold 2,750 (Nov-25)
15Goldman SachsSell (Nov-25 headline)n.v.12 Nov 2025-Initiated Neutral Jan-25; 2026 status unverified

Kotak, YES Securities and JM Financial were named as covering the stock but no targets were verified. Pre-bonus targets (Goldman 5,060, Nuvama 7,200, MOFSL 7,600) are excluded. Aggregator high Rs 4,711 sits below PL's 4,850 (unresolved). Nuvama's Rs 4,570 post-Q4 was the then-highest. Jefferies (Feb-26): RBI curbs 10-12% of options volume, ~10% earnings.

Street targets (Rs) vs CMP Rs 3,313 (red line) PL Capital4,850 UBS4,500 Haitong4,060 Macquarie4,000 JPMorgan3,950 Avendus3,950 Centrum3,940 MOFSL3,900 HSIE3,850 360 ONE3,765 ICICI Sec3,530 Nuvama3,240 Jefferies2,840 Bernstein2,820 Green = Buy-type, grey = Hold/Neutral/n.d., red = Underperform. Scale 0-5,000.

12.5 Consensus and rating changes

MeasureAggregator (Investing.com / S&P / StockAnalysis / MarketScreener)Named-house table (14 targets)
Analysts1914
Split10 Buy / 5 Hold / 4 Sell; StockAnalysis Oct-26: 6 Strong Buy, 4 Buy, 5 Hold, 2 Sell, 2 Strong Sell (May-26: 8 Buy-type, 6 Hold, 0 Sell)5 Buy-type + Haitong n.d.; 6 Hold; 2-3 Sell
LabelBuy / OutperformHold-to-Add
Low / median / mean / high2,820 / 3,815 (+15.3%) / 3,704 (+11.9%) / 4,711 (+42.3%)2,820 / 3,920 (+18.4%) / 3,800 (+14.8%) / 4,850 (+46.5%)
Other printsRs 3,787.68 (Business Today, 30 Sep); Trendlyne Rs 4,093 (narrow, stale)-
DateHouseActionFrom toReason
10 Oct 2025MOFSLNeutralTP 2,250 (stock 2,385)Weekly-expiry overhang
12 Nov 2025JefferiesHold, TP up2,790 to 2,930Q2 beat
11-12 Nov 2025MOFSL / I-SecNeutral 2,800 / Hold 2,750-Q2
12 Nov 2025Goldman"Keeps Sell"n.v.Valuation
9-10 Feb 2026CentrumTP up2,701 to 3,331Estimates +11-13%
10 Feb 2026HSIEAddto 3,310Share 24.4% to 26.8%; EPS +8-10%
10 Feb 2026JefferiesHold2,850 to 3,050Q3
7 May 2026MOFSLNeutral2,800 to 4,400Q4 in line
8 May 2026AvendusDowngrade to Add4,100Valuation
8 May 2026JefferiesHold3,330 to 3,620Q4
18 Jun 2026PLInitiate Buy4,850Structural share gains, operating leverage
4-6 Aug 2026MOFSLNeutral, cut4,400 to 3,900EPS -9%/-8%; RBI prop risk unmodelled
5 Aug 2026NuvamaBuy, cut4,570 to 4,090PAT -16.6%/-14.4%
5 Aug 2026JPMorganNeutral, cut4,330 to 4,090Muted near term
5 Aug 2026JefferiesHold3,440 to 3,520Q1
5 Aug 2026PLBuy held50x to 49xOpex high
6 Aug 2026ICICI SecHold3,530EPS -14%/-9%
17 Aug 2026JefferiesDowngrade to U/P3,520 to 2,940CAS, STT, RBI BG; ADTO -12% MoM (NSE -14%); EPS -5-12%
18 Aug 2026NuvamaDowngrade to Hold4,090 to 3,240CAS, BG norms, share saturation; EPS -6.3%/-15%
9 Sep 2026BernsteinInitiate U/P2,820"The best is behind"; share peaks by Q4 FY27; mid-teens growth; ~9% below consensus Q2 volumes
15 Sep 2026JPMorganUpgrade to OW4,090 to 3,950Not reported
24 Sep 2026MacquarieInitiate Outperform4,000Financialisation; margin to 70%
30 Sep 2026HSIEAdd3,850-
6 Oct 2026NuvamaHold reiterated (Q2 preview)3,240Q2 ADPT -23.9% QoQ to ~Rs 22,500 cr/day; revenue Rs 1,430 cr (-8.5% QoQ), adj. PAT Rs 740 cr (-13.5% QoQ); outcome hinges on CAS
7 Oct 2026JefferiesU/P, cut2,940 to 2,840Not reported (Investing.com only; not corroborated in the 9 Oct sweep)
9 Oct 2026Master Capital Services (technical)Buy (technical)Rs 3,650-3,800; stop Rs 3,050Break above the ~Rs 3,300 downtrend line; technical call, excluded from the target statistics above

Net 12 months: 3 downgrades, 1 upgrade, 3 initiations; target cuts Aug-Oct 2026 at MOFSL, Nuvama (x2), JPM (x2), Jefferies (x2), PL (multiple only).

12.6 Valuation today (Rs 3,313)

MetricValueBasis
P/E TTM47.7x / 48.5xScreener EPS Rs 69.55 / StockAnalysis
P/E FY26 (company EPS)54.7xRs 60.61; street quotes ~54.6x
P/E annualised Q1 FY27~39xRs 21.22 x 4 = Rs 84.9
Forward P/E43.0x FY27E / 37.3x FY28E (StockAnalysis 41.7x)Consensus
P/B20.2-20.4x / 16.9xScreener BV Rs 164 / StockAnalysis ~Rs 194 (SGF classification)
EV~Rs 1,29,640 crMcap less net cash Rs 5,503 cr
EV/EBITDA~37x / 27.6x / ~42x / ~31xTTM Screener Rs 3,499 cr / StockAnalysis (incl. treasury) / FY26 co. Rs 3,079 cr / Q1 ann. Rs 4,184 cr
EV/Sales; P/S22.6x; 23.5xStockAnalysis
Earnings yield / FCF yield2.1% / 1.9% (1.6% standalone)FY26
Dividend yield0.30%DPS Rs 10
Non-core: CDSL 15%~Rs 3,940 cr (2.9% of mcap)CDSL mcap Rs 26,269 cr
Multiple (FY-end, StockAnalysis)FY22FY23FY24FY25FY263-yr avgCurrentvs avg
P/E50.2x26.5x43.8x56.0x43.8x47.9x48.5x+1%
P/B3.72x1.63x7.73x13.00x13.61x11.4x16.9x+48%
EV/EBITDA27.6x7.3x31.4x30.0x25.0x28.8x27.6x-4%
EV/Sales10.3x2.5x18.3x21.1x20.0x19.8x22.6x+14%
P/S15.2x6.3x21.7x23.1x21.4x22.1x23.5x+6%
Dividend yield1.50%2.86%0.60%0.33%0.37%0.43%0.30%lower
Market cap (Rs cr)12,7695,83834,08174,1841,09,456-1,35,144-

Earnings multiples are near their 3-year average; P/B is well above it (RoE ~45%). Market cap rose 23x from FY23 vs PAT 12x (Rs 206 cr to TTM Rs 2,822 cr). Most of the re-rating came in FY24 (P/E 26x to 44x). The 59.1x on Q1 results day has compressed to ~48x.

12.7 Dividends and buybacks

FYDPS declaredBonus-adj. DPSPayoutCash paid next FY (Rs cr)
FY22~Rs 13.5~4.572%186
FY23~Rs 12~4.074%165
FY24~Rs 15~5.026%206
FY25Rs 23 (Rs 18 + Rs 5 special)~7.523% (call: 28.4%)316
FY26Rs 10 (record 10 Jul; paid by 17 Sep 2026)1016%~408-412

Pre-FY26 DPS back-calculated (approximate). Payout fell from 72-74% to 16%, likely because of capex, SGF top-ups and clearing-risk capital. Dividends since FY22 total ~Rs 880 cr; FY16-26 Rs 1,773 cr. Buybacks: FY19 open market Rs 166 cr (max Rs 1,100); FY20 tender Rs 460 cr at Rs 680; FY24 tender at Rs 1,080, 86,532 shares (~Rs 9.3 cr). Total ~Rs 640 cr bottom-up vs Rs 653.5 cr in the deck (unresolved). None in FY25-FY27 YTD.

12.8 Scenario frame (12-18 months) [Analyst View, anchored on street targets]

CasePriceAssumptions
Bull~Rs 4,850 (+46%)PL: share gains continue in cash and derivatives; CAS rollback; colo/options repricing; ~49x FY28E EPS
Base~Rs 3,700-3,900 (+12-18%)Consensus mean/median: FY27E EPS ~Rs 77, FY28E ~Rs 89; ~40-43x FY28E
Bear~Rs 2,820 (-15%)Bernstein: share peaks FY27; mid-teens growth; RBI/CAS drag; ~32x FY28E. Tail: monthly-expiry regime (not modelled by street)

12.9 Sensitivities and where the street disagrees

Final Verdict

Business Quality
Strong
Duopoly, 67% margin; moat moderate and regulation-dependent
Management Quality
Strong
Delivered turnaround; guarded tone; succession by Jan-28
Financial Quality
Strong
Debt-free, RoE 46%, OCF/PAT 1.14x standalone
Valuation
Expensive
47.7x TTM, 43x FY27E, 20x P/B
Overall View
Neutral
TRACK
Bull case
  1. Share keeps rising (31.5% to 35%+). The CAS rollback restores volumes, and interoperability brings NSE members into Sensex.
  2. Pricing optionality: options discount (~Rs 250-300/cr), order flow at ~20% of market, and data in-house from Jan-27 all flow to EBITDA, with the SGF step-down on top. Margin heads to ~70% (Macquarie).
  3. Non-options franchise (listing, StAR MF, indices, CDSL ~Rs 3,940 cr, net cash ~Rs 5,500 cr) gives a floor. FY27E EPS of ~Rs 85 would put the stock at ~39x.
Bear case
  1. SEBI moves to monthly or common expiries, or caps 0-DTE. The core earner (~74% of revenue) loses much of its gain.
  2. RBI BG run-off, CAS and STT reset prop economics (~50% of notional). Q2/Q3 FY27 volumes fall 10-15%, and NSE cuts fees to defend share.
  3. NSE listing removes the scarcity premium. The multiple de-rates to ~32x FY28E (below NSE's ~35x annualised) on decelerating (~15%) FY28 growth, implying Bernstein's Rs 2,820.
Base case (12-18m)

Premium ADPT settles at Rs 25,000-30,000 cr/day, and share plateaus around 30-33%. FY27 revenue from ops is ~Rs 6,000-6,400 cr, and EPS lands near the ~Rs 77 consensus. The stock trades roughly in a Rs 3,000-3,900 band (40-43x forward). Returns would track earnings, with no re-rating, until regulatory clarity arrives.

Update (9 Oct): Nuvama's Q2 preview puts ADPT at ~Rs 22,500 cr/day [broker est.], below this band. If confirmed, Q2 is the first QoQ decline of the up-cycle, and FY27 revenue tilts to the low end of the range unless the CAS rollback lifts H2 volumes.

5 things to remember

  1. ~74% of revenue is one product (the SENSEX weekly option), and SEBI decides its expiry day.
  2. Q1 FY27 was a record quarter but flat QoQ. PAT growth came from MTM and a one-off that did not recur.
  3. BSE is debt-free and highly cash-generative. Consolidated cash flow is distorted by the clearing float, so use standalone (OCF/PAT 1.14x in FY26).
  4. Several figures are contested: EPS (Rs 60.61 vs Rs 61.22), net worth (Rs 6,673 vs Rs 8,042 cr), buybacks (Rs 640 vs Rs 653.5 cr). Check the basis before comparing.
  5. The street is polarised (Rs 2,820-4,850). The mean target is only +12%, and both tails have grown.

5 questions to ask before investing

  1. What was Q2 FY27 premium ADPT, and did it hold above Rs 25,000 cr/day after CAS and RBI BG run-off?
  2. Has SEBI issued the CAS-suspension circular, and is any paper on expiry frequency pending?
  3. Will BSE raise options prices or colocation/order-flow charges, and will NSE respond with fee cuts?
  4. Is the CEO's term being extended, or who succeeds him by Jan 2028?
  5. Can cash share reach double digits by early CY27, and can monthly contracts grow beyond 5-6%?
Verdict: TRACK. BSE is a superb, debt-free market-infrastructure franchise that has executed a remarkable share grab. But its growth has stalled sequentially, its core revenue is allocated by regulators, and at ~43x FY27E it still prices in continued gains. Re-assess for ENGAGE after the Q2 FY27 print and the SEBI CAS circular, or on a pullback toward ~35x forward (~Rs 2,700-2,900). News to 9 Oct (Nuvama's sub-Rs 25,000 Q2 ADPT estimate against the Reuters CAS-rollback report) does not change the verdict; it strengthens the case for waiting for the Q2 print.

Sources

All sources as of 9 Oct 2026. Primary filings (FY26 Annual Report, call transcripts Q4 FY25 to Q1 FY27, Q1 FY27 investor deck, shareholding XBRL) were read from the NSE archive; secondary coverage is listed below.

News sweep complete to 9 Oct 2026.

Primary filings and transcripts

Regulatory and ratings

Financial databases

Results and call coverage

Brokerage, flows and sentiment

News, industry, regulation

Open gaps (searched, not found)

Q3 FY26 impairment amount; Asia Index buyout price; MD term-renewal filing; Saurabh Shukla background; PID reappointment dates; block-deal history (NSE API 503); scheme-level MF/PMS/AIF; Sep-26 shareholding (not yet filed); Sep-26 monthly options premium and market-share data (not found; Nuvama's Q2 QoQ estimate used as a proxy); Q2 FY27 board-meeting date (not intimated as of 9 Oct); final SEBI CAS circular (not issued); JPM upgrade rationale; Jefferies 7 Oct note (Rs 2,840 not corroborated in the 9 Oct sweep); Goldman current target; regulatory-fee arrears payment; SAT appeal on the Jun-25 order; bulk-SMS outcome; LIC SAST filings; board attendance; tech vendors; colocation and DR site locations; top-5/10 member revenue share.