BSE net profit jumps 44.90% to 809.15 crore rupees in second quarter
Key Facts
BSE reported a 44.90% year-on-year increase in consolidated net profit to 809.15 crore rupees in the second quarter of fiscal 2027, compared with 558.43 crore rupees in the year-earlier period, the Financial Express reported. Revenue from operations rose 34.10% to 1,432.66 crore rupees in the quarter ended September 30, 2026, from 1,068.39 crore rupees a year earlier. The results highlight strong annual growth in revenue and profit, while the quarter-on-quarter comparison shows a retreat from June-quarter levels. Net profit fell 7.42% from 874.02 crore rupees, and operating revenue declined 8.52% from 1,566.02 crore rupees. Trading activity during the quarter reflected the impact of regulatory changes on market activity, particularly derivatives.
Investment income grew faster than operating revenue, rising 64.52% to 108.07 crore rupees in the second quarter of fiscal 2027 from 65.69 crore rupees in the year-earlier quarter, according to the Financial Express. The increase, along with higher revenue from operations, contributed to growth in total income during the period. But the quarterly declines in operating revenue and net profit show that annual performance did not carry through at the same pace compared with the June quarter. The quarter coincided with a period of trading disruption after the introduction of a closing auction session. Chief Executive and Managing Director Sundararaman Ramamurthy said, "Structural changes introduced in the market and uncertainty made people hold back, and there was a lull," adding that the issue was now behind the exchange.
India's regulator introduced a closing auction session in August 2026 to align markets with global standards, but the move affected trading volumes, particularly in derivatives, a Reuters report said. The agency noted that BSE partially rolled back the measure in October. The session, a short window near the market close to determine final share prices, prompted price volatility at the end of the day. That led intraday equity and options traders to exercise caution and scale back their positions. Ramamurthy said structural changes and uncertainty contributed to a period of subdued activity before trading began to recover.
Derivatives activity showed a divergence between annual and quarterly comparisons: average daily trading rose 50% year on year in the second quarter but fell 24% from the previous quarter, according to Reuters' calculation based on the premiums traders pay to buy contracts. Ramamurthy said, "September 2026 saw a decisive recovery," and October recorded "the highest-ever monthly average daily trading in index options premium." The recovery extended beyond the quarter ended in September, while average derivatives activity during the quarter remained below the June-quarter level. Reuters said the impact of the closing auction session was more pronounced in derivatives, with trading volumes affected and traders cautious near the close. The results therefore combined strong annual growth with quarterly declines in trading and revenue indicators.
UBS maintained its "Outperform" rating and price target of 4,050 rupees per share, while JPMorgan kept its "Overweight" rating and set a target of 3,960 rupees. Bernstein, meanwhile, maintained its "Underperform" rating and price target of 3,180 rupees, citing concerns about the sustainability of elevated growth and valuation normalisation. Bernstein also said the impact of the closing auction session was reflected in slower growth in trading volume and market share during the quarter. In the first trading session after the results announcement, BSE shares rose 3.7% to 3,735 rupees in early trading on Thursday, November 5, according to Moneycontrol.