BSE Q1 FY27 Earnings Call — Analysis (NSE: BSE)
BSE delivered record Q1 FY27 consolidated revenue of ₹1,707 Cr (+63% YoY operational revenue) and net profit of ₹873 Cr (+62% YoY), driven by an all-time high derivatives premium ADTO of ₹29,615 Cr.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q1FY27 Consolidated Revenue ₹1,707 Cr ( +4.72% QoQ ) . New story: New product and technology innovation .
Results
Consolidated revenue rose to ₹1,707 Cr (+63% YoY in operational revenue to ₹1,566 Cr); operating EBITDA reached ₹1,046 Cr (+67% YoY) with margins expanding 200 bps to 67%, and PAT grew 62% YoY to ₹873 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated Revenue | ₹1,707 Cr | +4.72% | sequential · Q1FY27 · vs ₹1,630 Cr in Q4FY26 |
| Operational Revenue | ₹1,566 Cr | +63% | yoy · Q1FY27 · from ₹958 Cr in Q1FY26 |
| Transaction Charges | ₹1,328 Cr | +80% | yoy · Q1FY27 · from ₹737 Cr in Q1FY26 |
| Other Operating Income | ₹98 Cr | +40% | yoy · Q1FY27 · from ₹70 Cr in Q1FY26 |
| Operating Expenses | ₹520 Cr | +56% | yoy · Q1FY27 · from ₹332 Cr in Q1FY26 |
| Operating EBITDA | ₹1,046 Cr | +67% | yoy · Q1FY27 · from ₹625 Cr in Q1FY26 |
| Operating EBITDA Margin | 67% | +200bps | yoy · Q1FY27 · from 65% in Q1FY26 |
| Net Profit (PAT) | ₹873 Cr | +62% | yoy · Q1FY27 · from ₹539 Cr in Q1FY26 |
| Derivatives Average Daily Premium Turnover | ₹29,615 Cr | +96% | yoy · Q1FY27 · all-time high |
| Cash Segment Average Daily Turnover | ₹9,955 Cr | point_in_time · Q1FY27 · Q1FY27 ADTO (highest-ever) | |
| BSE Star MF Revenue | ₹73.3 Cr | +20% | yoy · Q1FY27 · on 23.4 Cr transactions (+28% YoY) |
| Co-location Revenue | ₹51 Cr | point_in_time · Q1FY27 · Q1FY27 |
Guidance
Management targets achieving a double-digit equity cash market share by early CY2027 and expanding participating FPIs to at least 800.
What management committed to
- Star NPS platform will revolutionize the market and make people think very seriously about pension. — forward-looking
- We already have approval for two more indices which we can take for derivatives trading. — upcoming quarters
- The current volume in terms of number of contracts is actually 5 times more [than January 2025]. — ongoing
Key themes
Record derivatives scale and product diversification
How the narrative shifted
- Derivatives market share and liquidity: Management provided updated data showing 5x volume growth in monthly contracts and highlighted progress in options liquidity, but reiterated that market share is not the success measure.
- Macroeconomic resilience and primary market outlook: The narrative remains consistent, with Q1 FY27 showing record revenues and 14 consecutive quarters of growth.
- New product and technology innovation: This is a new thread this quarter, with management discussing the potential of Star NPS and two new index derivatives, marking a strategic shift towards product innovation.
- Co-location and technology expenses: No major narrative shift; management clarifies prior quarter's expense spike was due to a one-time provision.
Operational commentary
- Derivatives expansion continues with the successful launch of BSE Focused IT Index contracts (first IT sector derivative in India), completing three expiry cycles with growing participation.
- Data monetization transition: Starting January 1, 2027, BSE will end its 13-year marketing partnership with Deutsche Börse and directly manage worldwide market data distribution and licensing.
- Co-location infrastructure reached 500 racks, which management expects will comfortably support capacity demand for at least 1.5 years.
- Subsidiary ICCL has been formally rebranded as BSE Clearing Limited to align with core brand equity.
- BSE SME platform surpassed 750 listed companies in July 2026; recent 150 listings raised ₹6,323 Cr (38% of cumulative platform fundraise).
- Mainboard IPO pipeline remains robust with over 250 companies aiming to raise approximately ₹1.75 lakh Cr.
- Total registered investor accounts expanded to 25.8 Cr, adding 3.5 Cr accounts over the past year.
Analyst Q&A
Q. What drove the ₹40 Cr decrease in other operating expenses compared to Q4 FY26?
CFO Deepak Goel clarified that Q4 FY26 had an exceptional ₹40 Cr provision against dues receivable from a debtor in the clearing subsidiary, which normalised in Q1.
Q. Can management provide the revenue breakup of the ₹51 Cr co-location income between rack rental and order flow charges?
IR Head noted that the specific breakup was not immediately available on the call and offered to share it separately offline.
Q. How are monthly derivative contract volumes progressing and what is the outlook on market share convergence?
CEO explained non-near-week contracts grew 5x in volume and 10x in premium since Jan 2025, but noted that BSE targets broadening participation (e.g., reaching 800 FPIs) rather than tracking relative market share metrics.
Q. What is the pipeline for new derivative and exchange products going forward?
CEO highlighted corporate bonds (Sashakt Bandhan), Star NPS, 60 new indices, Electronic Gold Receipts, and 2 approved index derivatives in the pipeline, while currently prioritising the ramp-up of the Focused IT index.
Q. What has been the impact of the STT hike and the July 1 RBI circular regarding bank guarantees on trading volumes?
CEO stated overall industry volumes saw an impact in futures and some options, but BSE futures exposure is minimal. For options, BSE has seen minimal visible impact so far, though full effects may emerge gradually as legacy bank guarantees mature.
Q. Why did technology expenses rise and investment income increase sharply quarter-on-quarter?
Tech expenses increased due to core capacity scaling (order processing capacity expanded to 1,800 Cr/day) and modernising 80+ peripheral systems; investment income jumped from ₹67 Cr to ₹140.7 Cr due to MTM bond yield reversal from Q4 losses.
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