BSE Limited (NSE: BSE) reported a 44.9% year-on-year (YoY) increase in consolidated net profit attributable to shareholders to ₹809.15 crore in Q2 FY27, while revenue from operations rose 34.1% to ₹1,432.66 crore. Higher transaction charges and growth in corporate services supported the performance, while operating EBITDA excluding Core SGF contributions increased 42.4% to ₹984 crore.
However, revenue declined 8.5% quarter-on-quarter (QoQ), and net profit fell 7.4% due to lower equity derivatives activity and options premium turnover.
This BSE Q2 FY27 Results Analysis examines the company's financial performance, revenue segments, operating margins, cash flows and key factors investors should monitor.
Table of Contents
- BSE Q2 FY27 Results: Key Highlights
- BSE Q2 FY27 Financial Results: Quarterly Comparison
- BSE Revenue Breakdown: Business-Wise Performance
- Equity Derivatives Performance
- Equity Cash Market Performance
- BSE StAR MF: Mutual Fund Distribution Business
- Corporate Services and SME Platform
- Other Businesses and Growth Initiatives
- Operating Expenses Analysis
- EBITDA and Profitability Analysis
- H1 FY27 Financial Performance
- Cash Flow and Balance Sheet Analysis
- Regulatory Developments and Business Risks
- Board Meeting Announcements
- BSE Share Price Reaction and Valuation
- What Should Investors Monitor Next?
- Conclusion
BSE's second-quarter performance reflected strong annual growth in revenue and profitability, although several trading indicators moderated compared with the June 2026 quarter.
The following are the major highlights of the BSE Q2 Results 2027:
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Net profit: Consolidated profit attributable to shareholders increased 44.9% YoY to ₹809.15 crore.
-
Revenue from operations: Increased 34.1% YoY to ₹1,432.66 crore from ₹1,068.39 crore.
-
Operating EBITDA: Rose 42.4% YoY to ₹984 crore, excluding Core SGF contributions.
-
EBITDA margin: Expanded to 68.7% from 64.7% in Q2 FY26.
-
Transaction charges: Increased 42% YoY to approximately ₹1,127.8 crore, remaining the largest revenue contributor.
-
Corporate services: Revenue increased 19.8% YoY to approximately ₹165.9 crore.
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Equity derivatives: Average daily options premium turnover declined 23.9% QoQ to ₹22,530.7 crore.
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Earnings per share: Consolidated EPS increased to ₹19.64 from ₹13.56.
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H1 FY27 revenue: Reached ₹2,998.68 crore, representing 48% YoY growth.
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H1 FY27 profit: Profit attributable to shareholders increased 53.3% to ₹1,683.17 crore.
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Business expansion: BSE continued developing its mutual fund distribution, index services, clearing and market infrastructure businesses.
The results were announced on 4 November 2026. The figures are based on BSE Limited's unaudited consolidated financial results and H1 FY27 investor presentation.
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Want to evaluate BSE's stock performance after its Q2 FY27 results? Review the BSE share price, price charts and important financial valuation indicators.
BSE reported higher revenue and profitability compared with the corresponding quarter last year. However, the financial results also showed a sequential decline in revenue and earnings, reflecting lower trading activity during Q2 FY27.
The following table summarises the company's consolidated financial performance.
| Particulars |
Q2 FY27 |
| Revenue from operations |
₹1,432.66 Cr |
| Investment income |
₹108.07 Cr |
| Total income |
₹1,550.54 Cr |
| Operating EBITDA (excluding Core SGF) |
₹984.00 Cr |
| EBITDA margin (excluding Core SGF) |
68.7% |
| Profit before tax, including associates |
₹1,072.39 Cr |
| Consolidated profit for the period |
₹807.52 Cr |
| Profit attributable to shareholders |
₹809.15 Cr |
| EPS |
₹19.64 |
The comparative financial performance is presented below.
| Particulars |
Q1 FY27 |
Q2 FY26 |
| Revenue from operations |
₹1,566.02 Cr |
₹1,068.39 Cr |
| Investment income |
₹135.18 Cr |
₹65.69 Cr |
| Total income |
₹1,706.72 Cr |
₹1,139.53 Cr |
| Operating EBITDA (excluding Core SGF) |
₹1,071.90 Cr |
₹690.90 Cr |
| EBITDA margin (excluding Core SGF) |
68.4% |
64.7% |
| Profit before tax, including associates |
₹1,163.66 Cr |
₹738.96 Cr |
| Consolidated profit for the period |
₹872.66 Cr |
₹557.02 Cr |
| Profit attributable to shareholders |
₹874.02 Cr |
₹558.43 Cr |
| EPS |
₹21.22 |
₹13.56 |
Source: BSE unaudited consolidated financial results dated 4 November 2026. EBITDA excludes Core SGF contributions. Consolidated profit for the period and profit attributable to shareholders are separate reported measures.
What do the BSE Q2 FY27 numbers indicate?
The financial performance indicates positive operating leverage on a year-on-year basis.
Revenue increased 34.1%, while operating EBITDA excluding Core SGF contributions grew at a faster rate of 42.4%. This indicates that BSE generated higher operating earnings without a proportionate increase in expenses.
The EBITDA margin also improved by approximately 402 basis points, from 64.7% to 68.7%.
However, the sequential performance presents a different picture. Revenue declined 8.5%, while profit attributable to shareholders decreased 7.4%.
This indicates that BSE's earnings remain sensitive to trading activity, particularly in equity derivatives. The company delivered strong annual growth, but its quarterly performance continued to reflect fluctuations in market participation and transaction volumes.
BSE generates revenue through transaction charges, clearing and settlement activities, corporate services, mutual fund distribution, index licensing and other market infrastructure services.
Transaction charges remain its largest income source. However, its other businesses also contribute to revenue and provide opportunities to expand beyond trading-related income.
The following table presents the company's Q2 FY27 operating revenue composition.
| Revenue source |
Q2 FY27 revenue |
| Transaction charges |
₹1,127.8 Cr |
| Treasury income on clearing and settlement funds |
₹36.5 Cr |
| Services to corporates |
₹165.9 Cr |
| Other operating income |
₹102.4 Cr |
| Revenue from operations |
₹1,432.7 Cr |
Figures are rounded management classifications and may differ slightly from statutory financial statement figures.
1. Transaction charges: The largest revenue contributor
Transaction charges remained the primary earnings driver for BSE in Q2 FY27.
The company generated approximately ₹1,127.8 crore from transaction charges, compared with ₹794 crore in Q2 FY26. This represented an increase of approximately 42% YoY.
Transaction charges accounted for nearly 78.7% of operating revenue during the quarter.
The increase of ₹333.8 crore in transaction charges represented approximately 92% of BSE's total year-on-year increase in operating revenue.
However, transaction charge revenue declined approximately 15.1% sequentially from ₹1,327.7 crore in Q1 FY27.
This movement highlights the importance of derivatives trading activity in BSE's earnings model. Higher trading participation and options premium turnover can support transaction income, while lower activity can affect revenue within a quarter.
Investors should monitor the following factors:
- Equity derivatives premium turnover.
- Trading volumes across different products.
- Effective transaction fee realisation.
- Changes in the mix of contracts traded.
- Clearing and settlement costs associated with trading activity.
2. Corporate services: Revenue increases 19.8%
Revenue from services to corporates increased 19.8% YoY to approximately ₹165.9 crore from ₹138.5 crore.
Compared with ₹100.7 crore in Q1 FY27, the segment recorded sequential growth of approximately 64.7%.
This category includes listing-related fees, IPO book-building services and other services provided to companies accessing the capital markets.
Corporate services provide BSE with an additional source of revenue beyond securities trading.
However, different activities within this segment have different revenue characteristics. Annual listing fees are generally more recurring, while IPO-related and book-building income depends on primary market activity.
Consequently, the sustainability of this revenue stream depends on both the existing listed-company base and the level of new capital market activity.
3. Treasury income and other operating revenue
Treasury income on clearing and settlement funds declined to ₹36.5 crore in Q2 FY27 from ₹42.8 crore in Q2 FY26, representing a decrease of approximately 14.7%.
Other operating income increased 9.9% YoY to approximately ₹102.4 crore from ₹93.2 crore.
These income sources contribute to BSE's broader market infrastructure and service operations.
Separately, investment income increased 64.5% YoY to ₹108.07 crore from ₹65.69 crore.
Investment income supported the company's total income and profitability. However, it should be assessed separately from core operating revenue because investment returns can vary across reporting periods.
Equity derivatives are central to BSE's current earnings profile.
The company's investor presentation showed that its derivatives business continued to expand on a year-on-year basis. However, options premium turnover, notional turnover and lots traded declined compared with Q1 FY27.
The following table summarises BSE's equity derivatives performance.
BSE Q2 FY27 Equity Derivatives Performance
| Equity derivatives indicator |
Q2 FY27 |
| Average daily options premium turnover |
₹22,530.7 Cr |
| Average daily notional turnover |
₹185 trillion |
| Average daily lots traded |
120 million |
| Equity derivatives revenue |
₹951.9 Cr |
| Trading members |
616 |
| Unique client codes (UCCs) |
12.0 million |
The comparative trading indicators are as follows.
BSE Q1 FY27 Equity Derivatives Performance
The following table presents BSE's equity derivatives performance during the preceding quarter.
| Equity Derivatives Indicator |
Q1 FY27 |
| Average daily options premium turnover |
₹29,615.4 Cr |
| Average daily notional turnover |
₹237 trillion |
| Average daily lots traded |
156 million |
| Equity derivatives revenue |
₹1,155.0 Cr |
| Trading members |
600 |
| Unique client codes (UCCs) |
11.2 million |
BSE Q2 FY26 Equity Derivatives Performance
For a year-on-year comparison, the following table highlights BSE's equity derivatives performance during Q2 FY26.
| Equity Derivatives Indicator |
Q2 FY26 |
| Average daily options premium turnover |
₹15,004.5 Cr |
| Average daily notional turnover |
₹164 trillion |
| Average daily lots traded |
100 million |
| Equity derivatives revenue |
₹624.2 Cr |
| Trading members |
550 |
| Unique client codes (UCCs) |
8.7 million |
Source: BSE H1 FY27 investor presentation, page 13. Figures are company-reported and rounded.
Options premium turnover declines 23.9% QoQ
Average daily options premium turnover declined to ₹22,530.7 crore in Q2 FY27 from ₹29,615.4 crore in Q1 FY27.
This represented a sequential decline of approximately 23.9%.
However, compared with ₹15,004.5 crore in Q2 FY26, options premium turnover increased approximately 50.2%.
Options premium turnover is particularly important for exchange operators because transaction fee income from options is closely linked to the premium value traded rather than simply the notional value of contracts.
Therefore, a rise in notional turnover does not necessarily result in a proportionate increase in transaction revenue.
Changes in contract size, premium values, product mix and applicable fee rates can influence the relationship between trading activity and exchange income.
Equity derivatives revenue declines 17.6% QoQ
BSE generated approximately ₹951.9 crore in equity derivatives revenue during Q2 FY27, compared with ₹1,155 crore in Q1 FY27.
This represented a sequential decline of approximately 17.6%.
On a year-on-year basis, however, equity derivatives revenue increased approximately 52.5% from ₹624.2 crore.
This indicates that BSE's derivatives franchise remained significantly larger than it was a year earlier, despite the moderation in September-quarter activity.
It is also important to distinguish equity derivatives business revenue from consolidated transaction charges. The former is a management-reported business metric, while the latter is a financial statement revenue category. They should not be treated as identical figures.
Trading participation continues to expand
Despite the sequential decline in trading activity, BSE reported an increase in its trading member base and unique client codes.
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Trading members increased to 616 from 600 in Q1 FY27.
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Unique client codes increased to 12 million from 11.2 million.
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Compared with Q2 FY26, trading members increased from 550.
-
Unique client codes increased from 8.7 million in Q2 FY26.
The increase in members and registered clients indicates broader participation on the platform.
However, a larger client base does not automatically translate into higher revenue. Future earnings will depend on whether this participation generates sustained trading activity and transaction fee income.
What does derivatives performance mean for investors?
BSE's derivatives business provides significant operating leverage because exchange infrastructure can support higher trading volumes without requiring operating expenses to increase at the same rate.
However, the same model also creates earnings sensitivity.
If derivatives turnover declines for an extended period, transaction income can weaken while employee, technology and infrastructure expenses continue.
The Q2 FY27 performance demonstrates both aspects of this business model: substantial annual growth and meaningful sequential volatility.
The equity cash market remains an important part of BSE's exchange operations, alongside its larger derivatives business.
According to the H1 FY27 investor presentation, the company recorded growth in both average daily turnover and transaction charge income during the first six months of FY27.
| Equity cash indicator |
H1 FY27 |
| Average daily turnover |
₹10,235.6 Cr |
| Transaction charge income |
₹138.4 Cr |
The corresponding H1 FY26 figures were ₹7,583.7 crore in average daily turnover and ₹121.6 crore in transaction charge income.
This represents:
The difference between turnover growth and transaction charge growth indicates that trading activity and revenue realisation did not increase proportionately.
BSE's presentation separates transaction charges into normal-rate and special-rate categories, highlighting the importance of trading mix and effective fee rates.
For investors, equity cash market performance matters because it provides an additional transaction-related revenue stream and supports BSE's broader relationships with brokers, investors and listed companies.
However, an increase in absolute turnover alone does not establish that BSE has gained market share. Its performance must also be assessed against the overall Indian equity cash market.
Source: BSE H1 FY27 investor presentation, page 12.
BSE StAR MF is an important part of the company's market infrastructure and financial services ecosystem.
The platform provides transaction infrastructure for mutual fund purchases, redemptions, switches and systematic investment plans (SIPs).
Unlike equity derivatives, mutual fund distribution infrastructure is linked to recurring savings and investment activity.
BSE StAR MF H1 FY27 performance
The company's investor presentation reported growth in both mutual fund orders and platform revenue during H1 FY27.
| Particulars |
H1 FY27 |
| Mutual fund orders |
480 million |
| Mutual fund platform revenue |
₹145.7 Cr |
For comparison, H1 FY26 recorded 384 million mutual fund orders and ₹131.1 crore in platform revenue.
This represents a 25% increase in orders and an 11% increase in platform revenue.
The growth in orders was faster than revenue growth. Based on the reported figures, the implied revenue-to-orders ratio declined from approximately ₹3.41 in H1 FY26 to ₹3.04 in H1 FY27.
This is an analytical calculation rather than a published platform tariff.
The difference indicates that higher transaction volumes did not translate into equivalent revenue growth. Pricing, transaction mix and monetisation are therefore important factors to monitor.
BSE StAR MF platform reach
As of September 2026, the platform reported the following operating scale:
| Indicator |
Reported figure |
| Mutual fund houses registered |
54 |
| Mutual fund schemes available |
15,871 |
| Registered mutual fund distributors |
84,711 |
| Cities and towns covered |
721 |
The distributor network and geographical reach support the platform's ability to process mutual fund transactions across a wider investor base.
BSE also launched BSE StAR NPS on 22 April 2026, extending its distribution-related initiatives into the National Pension System segment.
For investors, the key consideration is whether the expansion in platform usage can translate into sustainable revenue growth.
Order volumes, average revenue per transaction, distributor additions and platform adoption will remain important indicators.
Source: BSE H1 FY27 investor presentation, pages 14, 15 and 23.
Corporate services provide BSE with revenue from companies accessing the capital markets.
The segment includes annual listing fees, IPO-related book-building services, listing processing and other corporate services.
The company's H1 FY27 presentation reported the following performance.
| Corporate services activity |
H1 FY27 |
| Listing-related income |
₹192.1 Cr |
| Book-building and other service income |
₹74.1 Cr |
Compared with H1 FY26, listing-related income increased 3.7% from ₹185.2 crore, while book-building and other service income rose 26.2% from ₹58.7 crore.
The difference in growth reflects the varying nature of these revenue streams.
Annual listing-related income can provide a relatively recurring revenue base, while book-building income is more dependent on IPO and capital-raising activity.
Consequently, the performance of BSE's corporate services business is linked to both the existing listed-company ecosystem and the level of primary market activity.
BSE SME Platform Performance
BSE's SME platform has developed into an important part of its capital market infrastructure.
The October 2026 investor presentation reported the following cumulative milestones.
| SME platform indicator |
Reported figure |
| Companies listed |
811 |
| Capital raised through SME IPOs |
₹19,459 Cr |
| Combined market capitalisation |
₹1.03 lakh Cr |
| Companies migrated to the main board |
207 |
These figures indicate the scale of the SME listing ecosystem supported by BSE.
However, capital raised by SME companies and their combined market capitalisation are not BSE's own revenue or assets.
The exchange earns applicable listing and transaction-related fees from these activities.
For investors, the important factor is whether continued SME platform expansion can generate sustainable fee income while maintaining appropriate compliance and operational standards.
Source: BSE investor presentation, pages 16–17.
Apart from transaction charges, mutual fund distribution and corporate services, BSE continues to develop several market infrastructure businesses.
These initiatives are relevant to its longer-term business strategy because they provide opportunities to expand index licensing, data services, clearing infrastructure and other capital market offerings.
BSE Index Services
BSE Index Services, formerly Asia Index, became a wholly owned subsidiary of BSE in June 2024.
The business develops and maintains indices and provides index licensing, data and related services.
According to the H1 FY27 investor presentation:
- The business had more than 180 indices.
- Passive investment products and actively benchmarked funds associated with its indices represented approximately ₹12.53 lakh crore in assets.
- A total of 129 passive products tracked 41 indices.
- These passive products had approximately ₹2.8 lakh crore in associated assets.
These figures indicate the reach of BSE's index ecosystem.
The company can benefit from the expansion of index funds, exchange-traded funds (ETFs) and other investment products that use its indices as benchmarks.
However, the ₹12.53 lakh crore figure represents third-party investment assets tracking or benchmarking BSE indices. It is not BSE's own assets under management or balance-sheet investment.
Revenue generation depends on licensing arrangements, index data subscriptions and the commercial terms agreed with financial institutions and product providers.
Agreement with MSCI
BSE disclosed an agreement with MSCI to explore the introduction of India-listed futures and options contracts linked to MSCI indices.
This initiative could expand the range of index-linked derivatives products available through the exchange.
However, the agreement is exploratory. It does not confirm that the proposed contracts have been launched or started generating revenue.
Future progress will depend on product design, commercial arrangements, regulatory requirements and market adoption.
Clearing and settlement infrastructure
Clearing and settlement operations are essential to the functioning and risk management of an exchange.
BSE's investor presentation highlighted improvements in its risk management and processing systems.
Reported processing capability increased from 3,000 to 27,000 trades per second per member per client.
The company also reported expanded daily processing capacity for equity and derivatives transactions.
These improvements are intended to support higher transaction volumes and strengthen operational capacity.
However, technology infrastructure requires ongoing investment in maintenance, cybersecurity, system reliability and regulatory compliance.
Other market infrastructure businesses
BSE continues to operate and develop services across several areas, including:
- Debt market infrastructure.
- Co-location facilities.
- Market data dissemination.
- International Financial Services Centre-related operations.
- Index development and licensing.
- Clearing and settlement services.
The group also holds investments in other market infrastructure companies.
One important investment is its 15% holding in Central Depository Services (India) Limited (CDSL), as of 30 September 2026.
CDSL is an associate investment and not a wholly owned subsidiary of BSE. Therefore, its contribution is recognised through the appropriate associate accounting treatment rather than by consolidating all of CDSL's revenue into BSE's operating revenue.
BSE's operating expenses increased at a slower rate than revenue on a year-on-year basis.
However, regulatory contributions, clearing and settlement expenses, technology costs and employee expenses remain important components of its operating cost structure.
The following table presents the company's major expense categories.
| Expense category |
Q2 FY27 |
| Employee benefits |
₹84.74 Cr |
| Technology expenses |
₹57.62 Cr |
| Clearing and settlement expenses |
₹79.98 Cr |
| Regulatory contribution |
₹166.00 Cr |
| Other expenses |
₹60.29 Cr |
| Depreciation |
₹46.07 Cr |
| Total expenses before Core SGF |
₹494.70 Cr |
| Core SGF contribution |
₹10.97 Cr |
For comparison, BSE reported total expenses before Core SGF of ₹536.69 crore in Q1 FY27 and ₹409.98 crore in Q2 FY26.
Core SGF contributions stood at ₹25.91 crore in Q1 FY27 and ₹10.61 crore in Q2 FY26.
Source: BSE consolidated financial results dated 4 November 2026.
Regulatory and clearing expenses
Regulatory contributions increased approximately 13.2% YoY to ₹166 crore from ₹146.69 crore.
Clearing and settlement expenses increased approximately 26.4% to ₹79.98 crore from ₹63.27 crore.
Together, these two expense categories amounted to approximately ₹246 crore during Q2 FY27.
These expenses are important because greater trading activity can generate higher transaction income while also increasing regulatory and settlement-related costs.
Therefore, the profitability of additional trading activity depends on the balance between transaction fee realisation and associated operating expenses.
Technology and employee expenses
Technology expenses increased to ₹57.62 crore from ₹47.78 crore in Q2 FY26, representing growth of approximately 20.6%.
Employee benefit expenses increased to ₹84.74 crore from ₹70.90 crore, an increase of approximately 19.5%.
These expenses reflect the continuing requirements of maintaining exchange infrastructure, developing technology systems and supporting business operations.
Investors should monitor whether these investments improve processing capacity, system reliability and revenue opportunities without creating a disproportionate increase in recurring costs.
What explains the improvement in operating profitability?
Excluding Core SGF contributions, total operating expenses, including depreciation, increased approximately 20.7% YoY.
This was slower than the 34.1% growth in revenue from operations.
The difference supported BSE's operating leverage and contributed to the improvement in its EBITDA margin.
However, the company's cost structure is not entirely fixed. Regulatory contributions, clearing expenses and other transaction-related costs can increase alongside market activity.
Therefore, sustained profitability will depend on both revenue growth and effective cost management.
BSE reported operating EBITDA under two measures: excluding and including Core SGF contributions.
This distinction is important because the Core Settlement Guarantee Fund contribution is part of the exchange's financial and risk-management framework.
The following table summarises the company's profitability.
| Profitability indicator |
Q2 FY27 |
| EBITDA excluding Core SGF |
₹984.0 Cr |
| EBITDA margin excluding Core SGF |
68.7% |
| EBITDA including Core SGF |
₹973.1 Cr |
| EBITDA margin including Core SGF |
67.9% |
| Net profit margin on total income |
52.1% |
The corresponding Q2 FY26 figures were ₹690.9 crore in EBITDA excluding Core SGF, a margin of 64.7%, EBITDA including Core SGF of ₹680.3 crore and a margin of 63.7%.
In Q1 FY27, EBITDA excluding Core SGF was ₹1,071.9 crore, with a margin of 68.4%.
EBITDA margin improves to 68.7%
BSE's operating EBITDA excluding Core SGF increased 42.4% YoY to ₹984 crore.
The EBITDA margin expanded by approximately 402 basis points from 64.7% in Q2 FY26 to 68.7% in Q2 FY27.
The margin also improved from 68.4% in Q1 FY27, despite the sequential decline in revenue.
This indicates that BSE maintained operating profitability through the quarter while managing its expenses.
However, investors should assess both EBITDA measures.
Including Core SGF contributions, EBITDA stood at ₹973.1 crore, with a margin of 67.9%.
The higher EBITDA measure excluding Core SGF should not be interpreted as eliminating the contribution from the company's financial risk-management framework.
Did BSE's profit growth depend on exceptional income?
BSE did not report a separate exceptional gain in its Q2 FY27 consolidated financial results.
Profit before tax, including the share of associates' profits, stood at ₹1,072.39 crore.
The share of profits from associates increased to ₹27.52 crore from ₹20.02 crore in Q2 FY26.
Investment income also increased during the quarter to ₹108.07 crore from ₹65.69 crore.
Therefore, the earnings growth reflected stronger operating performance, alongside higher investment income and associate contributions. It was not driven by a separately reported exceptional gain.
BSE's first-half financial results provide a broader view of its earnings performance and help assess growth beyond the fluctuations of an individual quarter.
During H1 FY27, the company recorded higher revenue, investment income and profitability compared with the corresponding period last year.
| Particulars |
H1 FY27 |
| Revenue from operations |
₹2,998.68 Cr |
| Investment income |
₹243.25 Cr |
| Total income |
₹3,257.26 Cr |
| Profit before tax, including associates |
₹2,236.05 Cr |
| Profit from continuing operations |
₹1,680.18 Cr |
| Consolidated profit attributable to shareholders |
₹1,683.17 Cr |
| EPS, total operations |
₹40.86 |
The H1 FY26 comparative figures were ₹2,026.34 crore in revenue from operations, ₹144.75 crore in investment income, ₹2,183.98 crore in total income and ₹1,097.84 crore in profit attributable to shareholders.
The resulting year-on-year growth was:
-
Revenue from operations: 48%.
-
Investment income: 68%.
-
Total income: 49.1%.
-
Profit before tax, including associates: 55.2%.
-
Profit from continuing operations: 55.1%.
-
Profit attributable to shareholders: 53.3%.
-
EPS: 53.3%.
Source: BSE unaudited consolidated financial results for the six months ended 30 September 2026.
What does BSE's H1 FY27 performance indicate?
BSE's first-half revenue growth of 48% and shareholder profit growth of 53.3% indicate a substantial improvement in its financial performance.
Profit growth exceeding revenue growth reflects the benefit of operating leverage during the period.
An accounting distinction is also relevant when comparing earnings.
H1 FY26 included ₹11.95 crore of profit from discontinued operations, while H1 FY27 did not.
Consequently, profit from continuing operations increased approximately 55.1% YoY, slightly faster than the reported overall profit growth.
The first-half performance demonstrates strong annual earnings growth. However, the difference between Q1 and Q2 indicates that quarterly results can fluctuate with market activity.
Investors should therefore assess BSE's earnings over multiple reporting periods rather than assuming that the strongest quarterly performance will continue at the same rate.
Cash generation is an important part of evaluating BSE's financial performance.
While reported profitability indicates earnings growth, operating cash flow helps investors understand how much cash the business generates from its operations.
H1 FY27 cash flow performance
BSE generated higher operating cash flow during the first half of FY27 compared with H1 FY26.
| Cash flow indicator |
H1 FY27 |
| Net cash from operating activities |
₹1,327.02 Cr |
| Purchase of property, equipment and intangible assets, including capital advances |
₹172.71 Cr |
| Operating cash flow less the above capital expenditure |
₹1,154.31 Cr |
| Net cash used in investing activities |
₹1,703.64 Cr |
| Dividend cash paid |
₹411.98 Cr |
For comparison, H1 FY26 operating cash flow stood at ₹991.86 crore, while the corresponding capital expenditure and related advances amounted to ₹313.24 crore.
Net cash used in investing activities was ₹1,432.69 crore, and dividend cash paid stood at ₹315.85 crore.
The operating cash flow less capital expenditure figure is an analytical calculation, not a separately reported company metric.
Operating cash flow increased 33.8%
Net cash generated from operating activities increased 33.8% to ₹1,327.02 crore in H1 FY27 from ₹991.86 crore in H1 FY26.
This is a positive indicator because higher reported profitability was accompanied by increased cash generation.
Operating cash flow represented approximately 79% of consolidated profit attributable to shareholders during H1 FY27.
However, investors should also examine working capital movements, taxes paid and other cash flow adjustments when assessing the difference between accounting profit and operating cash generation.
Capital expenditure declines
BSE's cash expenditure on property, plant and equipment, intangible assets, capital work in progress and related advances stood at ₹172.71 crore in H1 FY27.
This was lower than the ₹313.24 crore reported in H1 FY26.
After deducting this expenditure from operating cash flow, the company generated approximately ₹1,154.31 crore.
This indicates substantial cash generation after the reported capital expenditure during the first half.
However, this analytical measure does not account for all investing activities and should not be treated as unrestricted cash available for distribution.
Why did total cash decline despite strong profits?
BSE reported net cash used in investing activities of ₹1,703.64 crore during H1 FY27.
The investing cash flow statement included movements in investments and fixed deposits, alongside capital expenditure.
Therefore, a reduction in cash equivalents caused by transferring funds into investments or deposits is different from a reduction caused by operating losses.
Investors should assess cash equivalents, other bank balances, investments and restricted or earmarked funds together rather than interpreting the movement in cash equivalents in isolation.
BSE balance sheet as of 30 September 2026
The consolidated balance sheet showed an increase in total assets and shareholders' equity during the first half of FY27.
| Balance-sheet item |
30 September 2026 |
| Total assets |
₹14,629.49 Cr |
| Equity attributable to BSE shareholders |
₹7,951.99 Cr |
| Total equity including non-controlling interests |
₹8,069.64 Cr |
| Cash and cash equivalents |
₹884.96 Cr |
| Other bank balances |
₹4,668.56 Cr |
| Current investments |
₹2,825.31 Cr |
| Core Settlement Guarantee Fund |
₹1,283.66 Cr |
For comparison, as of 31 March 2026, total assets stood at ₹13,446.14 crore, equity attributable to shareholders at ₹6,673.01 crore, total equity at ₹6,795.50 crore, cash equivalents at ₹1,671.59 crore, other bank balances at ₹3,501.21 crore, current investments at ₹2,345.01 crore and the Core SGF at ₹1,246.83 crore.
The balance sheet reflects growth in shareholders' equity and substantial financial assets.
However, cash equivalents, bank balances and investments have different liquidity and availability characteristics.
Stock exchanges and clearing entities must maintain financial resources to meet regulatory, settlement and guarantee fund requirements.
Consequently, all reported cash, bank balances and investments should not be considered freely available for dividends, acquisitions or shareholder distributions.
The Core Settlement Guarantee Fund is particularly important because it supports the risk-management framework of market infrastructure operations.
BSE operates in a highly regulated financial market environment.
Changes in derivatives trading rules, margins, expiry arrangements, risk-management requirements and transaction charges can influence trading activity and the company's profitability.
The following are the major risks investors should monitor.
1. Equity derivatives regulation
The Securities and Exchange Board of India (SEBI) introduced measures to strengthen the equity index derivatives framework through its October 2024 circular.
These included changes relating to weekly derivatives products and risk-management requirements.
Subsequent regulatory initiatives have continued to focus on derivatives risk and market stability.
These developments are important for BSE because equity derivatives contribute significantly to its transaction-related income.
However, the decline in options premium turnover during Q2 FY27 should not be attributed entirely to a specific regulatory measure without supporting evidence.
Trading activity can also be influenced by market conditions, volatility, investor behaviour and competition between exchanges.
2. Competition with NSE
BSE competes with the National Stock Exchange (NSE) across major market segments, including equity cash and derivatives.
Factors influencing exchange participation include:
- Trading liquidity.
- Broker and trading member participation.
- Product availability.
- Transaction costs.
- Technology and trading infrastructure.
- Market share across individual segments.
Even when overall Indian capital market activity increases, BSE's revenue depends partly on its ability to attract and retain trading activity.
Investors should therefore monitor the company's absolute turnover alongside its market share relative to competing exchanges.
3. High dependence on transaction charges
Transaction charges accounted for nearly 78.7% of BSE's Q2 FY27 operating revenue.
This concentration supports strong revenue growth when trading activity increases.
However, it also exposes the company to fluctuations in derivatives turnover and transaction fee income.
BSE's mutual fund distribution, corporate services, index licensing and other infrastructure businesses provide opportunities for diversification.
Nevertheless, these businesses were not large enough during Q2 FY27 to eliminate its dependence on transaction-related revenue.
4. Regulatory and technology expenses
Exchanges must continuously invest in cybersecurity, clearing systems, business continuity, technology infrastructure and regulatory compliance.
An increase in these expenses can affect operating margins, particularly when trading activity weakens.
Investors should assess whether higher technology and compliance spending results in improved infrastructure capacity and operating efficiency.
5. Dependence on capital market activity
BSE's financial performance is linked to equity market participation, derivatives trading, IPO issuances and capital market activity.
These factors can fluctuate with investor sentiment and broader economic conditions.
Although some revenue streams, such as annual listing fees and index licensing, can offer a relatively recurring component, several other income sources remain activity-dependent.
6. Valuation risk
Strong earnings growth does not automatically mean that a stock is attractively valued.
BSE's valuation depends on expectations regarding future transaction volumes, derivatives market share, earnings growth, business diversification and operating margins.
If earnings growth moderates faster than expected, the stock may face valuation pressure even if the company remains profitable.
Investors should therefore assess earnings sustainability alongside the prevailing valuation.
Apart from approving the Q2 FY27 financial results, BSE's board meeting held on 4 November 2026 included two other important developments.
Appointment of a new executive director
BSE approved the appointment of Ashutosh Singh as Executive Director – Business (Vertical 3).
The appointment is for a period of five years, effective 30 November 2026, subject to shareholder ratification.
This forms part of the company's business leadership structure.
Proposed additional premises at Bandra Kurla Complex
The board approved a proposal to accept an offer from the Mumbai Metropolitan Region Development Authority (MMRDA) for the allotment of a plot at Bandra Kurla Complex (BKC), Mumbai.
The proposed premises are intended to support additional company infrastructure.
However, the proposal remained subject to documentation, applicable conditions and definitive agreements.
Detailed commercial terms were not disclosed in the board meeting outcome.
Therefore, the proposal should not be treated as a completed acquisition or a quantified capital expenditure commitment.
BSE announced its Q2 FY27 financial results on 4 November 2026 after the market closed.
The first full trading session following the announcement was 5 November 2026.
BSE shares closed at ₹3,790 on the NSE on 5 November 2026, compared with the previous closing price of ₹3,601.50 on 4 November 2026.
The stock gained 5.23%, increasing by ₹188.50 per share.
This represented a positive market reaction following the earnings announcement, despite the sequential decline in revenue and profit.
However, a single-day price movement cannot establish which specific component of the financial results influenced investor sentiment.
The share price may also reflect broader market conditions, changing earnings expectations and developments beyond the quarterly announcement.
Source: NSE India market quotations.
BSE share valuation after Q2 FY27
An illustrative trailing 12-month earnings per share (EPS) can be calculated using FY26 reported EPS and the latest H1 FY27 figures.
| Calculation |
EPS |
| FY26 reported EPS |
₹60.61 |
| Less: H1 FY26 reported EPS |
₹26.65 |
| Add: H1 FY27 reported EPS |
₹40.86 |
| Approximate trailing 12-month EPS |
₹74.82 |
Based on the closing share price of ₹3,790 on 5 November 2026, the illustrative trailing price-to-earnings (P/E) ratio was approximately 50.7 times.
The calculation is:
Trailing P/E = Share Price ÷ Trailing 12-Month EPS
= ₹3,790 ÷ ₹74.82
= Approximately 50.7 times.
This is a historical valuation calculation, not a forward earnings estimate. It also includes the effect of discontinued operations reported in the previous financial year.
The valuation places considerable importance on the sustainability of BSE's earnings growth.
Investors should assess whether the company can maintain transaction revenue growth, expand its non-trading businesses and protect operating margins over the coming quarters.
The sustainability of BSE's financial performance will depend on trading activity, revenue diversification, operating costs and its competitive position.
The following indicators can help investors evaluate the company's future quarterly performance.
| Factor |
What investors should monitor |
| Options premium turnover |
Recovery or further decline from Q2 FY27 levels |
| Equity derivatives revenue |
Growth relative to transaction volumes |
| Derivatives market share |
BSE's share compared with the wider market |
| EBITDA margin |
Sustainability of the 68–69% margin excluding Core SGF |
| Transaction charges |
Growth relative to total operating revenue |
| Regulatory developments |
SEBI circulars and implementation requirements |
| Corporate services |
Listing and book-building fee growth |
| StAR MF revenue |
Revenue growth compared with order volumes |
| Index services |
New products, licensing agreements and client relationships |
| Clearing and technology costs |
Infrastructure expenditure and system reliability |
| Operating cash flow |
Cash generated from operations relative to reported profit |
| Capital allocation |
Dividends, investment decisions and infrastructure commitments |
Among these factors, options premium turnover and equity derivatives revenue deserve particular attention because transaction charges remain BSE's largest revenue source.
At the same time, growth in StAR MF, corporate services and index licensing will help determine whether the company can gradually reduce its dependence on trading-related income.
BSE delivered strong year-on-year financial growth in Q2 FY27, with revenue from operations increasing 34.1% to ₹1,432.66 crore and profit attributable to shareholders rising 44.9% to ₹809.15 crore.
Operating EBITDA excluding Core SGF contributions increased 42.4% to ₹984 crore, while the EBITDA margin expanded to 68.7%.
Higher transaction charges remained the primary earnings driver. The company's mutual fund distribution platform, corporate services, index business and clearing infrastructure also continued to develop.
However, the sequential decline in revenue and profit highlights the sensitivity of BSE's earnings to derivatives trading activity. Average daily options premium turnover fell 23.9% QoQ, while equity derivatives revenue declined 17.6%.
The first-half performance remained strong, with revenue increasing 48% and profit attributable to shareholders growing 53.3%. Operating cash flow also increased, indicating that higher profitability was accompanied by stronger cash generation.
For investors, the key consideration is whether BSE can sustain its derivatives business growth while expanding its other revenue streams and maintaining operating margins.
The recovery or further moderation in options premium turnover, competitive positioning against NSE, revenue diversification and valuation will remain important factors when assessing BSE's financial performance in the coming quarters.
Want to understand the trading activity behind BSE's strong first-quarter earnings? Read the BSE Q1 FY27 Results Analysis to review the derivatives surge, revenue growth and profitability trends that shaped its performance.
Frequently Asked Questions
1. What was BSE's net profit in Q2 FY27?
BSE reported consolidated profit attributable to shareholders of ₹809.15 crore in Q2 FY27, compared with ₹558.43 crore in Q2 FY26. This represented a 44.9% year-on-year increase. However, profit declined 7.4% sequentially from ₹874.02 crore in Q1 FY27.
2. How much revenue did BSE generate in Q2 FY27?
BSE reported consolidated revenue from operations of ₹1,432.66 crore in Q2 FY27, representing 34.1% growth compared with ₹1,068.39 crore in Q2 FY26. Transaction charges contributed approximately ₹1,127.8 crore, making them the largest source of operating revenue.
3. Why did BSE's revenue and profit decline QoQ in Q2 FY27?
BSE's sequential revenue and profit declined primarily alongside lower equity derivatives trading activity. Average daily options premium turnover fell 23.9% to ₹22,530.7 crore, while equity derivatives revenue declined 17.6% to ₹951.9 crore compared with Q1 FY27.
4. What was BSE's EBITDA margin in Q2 FY27?
BSE reported an operating EBITDA margin of 68.7% in Q2 FY27, excluding Core SGF contributions, compared with 64.7% in Q2 FY26. Including Core SGF contributions, the EBITDA margin stood at 67.9%.
5. Did BSE announce a dividend with its Q2 FY27 results?
No new interim dividend was announced in BSE's board meeting outcome dated 4 November 2026. The ₹411.98 crore dividend cash outflow reported in the H1 FY27 cash flow statement relates to dividend payments made during the reporting period and should not be interpreted as a new quarterly dividend declaration.