Synopsis:
The BSE reported strong Q1FY26 results with robust revenue and profit growth, aided by lower costs and strong Sensex derivatives performance, while analysts remain cautious with modest target price adjustments.
Indian Stock Exchange is in the spotlight today after declaring financial results for Q1FY26. Check the article below to know about their performance and future target given by the analyst.
With a market capitalization of Rs. 97,692.72 crore, the shares of BSE Ltd were trading at Rs. 2,402.6, down by 1.62 percent from its previous closing price of Rs. 2,442.20. The stock has reached a high of Rs. 2503.60 in today’s trading session
Q1FY26 Results
BSE Ltd reported Rs. 958.4 crore in revenue for the first quarter of FY26, a 59.23 percent increase over the Rs. 602 crore for the same period in FY25. However, it increased by 13.21 percent as compared to Rs. 847 crore in Q4 FY25.
The operating profit for Q1 FY26 stood at Rs. 626 crore, up by 31.41 percent from Rs. 484 crore in Q4 FY25, and rose by 121.99 percent from Rs. 282 crore in Q1 FY25.
The consolidated net profit for the first quarter of FY26 was Rs. 538 crore, which was 8.91 percent higher than the Rs. 494 crore reported in the previous quarter and 103.6 percent higher year over year than the Rs. 264 crore in Q1 FY25. Profit growth was also reflected in earnings per share (EPS), which increased to approximately Rs. 13.28 in Q1 FY26 from Rs. 6.53 in Q1 FY25 and Rs. 12.17 in Q4 FY25.
Out of the total revenue from operations of Rs. 958.4 crore, transaction charges contributed the largest share at 76.96 percent (Rs. 737.5 crore), followed by services to corporates at 10.99 percent (Rs. 105.4 crore), other operating income at 7.31 percent (Rs. 70.1 crore), and treasury income on clearing and settlement funds at 4.74 percent (Rs. 45.4 crore).
In Q1 FY26, revenue from transaction charges surged by 84.33 percent year-on-year, treasury income on clearing and settlement funds declined by 26.77 percent, services to corporates rose by 10.71 percent, and other operating income increased by 57.17 percent compared to Q1 FY25.
Also Read: Bank stock jumps 8% after receiving approval from RBI to act as a universal bank
About the company
BSE (Bombay Stock Exchange), founded in 1875 as The Native Share & Stock Brokers’ Association, is Asia’s first and world’s fastest stock exchange, and it became India’s first publicly traded exchange in 2017.
The BSE operates markets for equities, currencies, debt instruments, derivatives, and mutual funds. It also runs India’s largest SME platform, the BSE StAR MF mutual fund platform, and the BSE Bond platform for private debt placements.
It also supervises investment advisers and research analysts under SEBI regulations and has established India INX, the country’s first international exchange, at GIFT City. Subsidiaries include Indian Clearing Corporation (trade settlement), BSE Institute Ltd (capital markets education), and BSE Sammaan (CSR exchange).
Analyst Outlook
Jefferies maintained a Hold rating on BSE, lowering the target price to Rs. 2,790 from Rs. 2,900. Q1 results were positive, but soft option volumes are a slight drag. Management stated that there are no current plans for fortnightly or monthly expiry changes, and any such shift would have a limited impact.
The Jane Street effect was negligible, and a common contract note is expected to boost FY27 revenues. EPS estimates were reduced by 5-6 percent due to decreased option activity.
Motilal Oswal maintained a Neutral stance on BSE and raised the target price to Rs. 2,600 from Rs. 2,400. The brokerage said Q1 PAT growth was supported by lower clearing house costs and operating expenses, as well as strong transaction revenue from Sensex derivatives products.
Written By Akshay Sanghavi
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post How did BSE Ltd perform in Q1 and should you Buy, Sell or Hold? appeared first on Trade Brains.