BSE Q3 FY26 Results: Profit Soars 174% to ₹602 Crore

Introduction

BSE Ltd, Asia's oldest stock exchange, announced exceptional financial results for the third quarter of fiscal year 2026, ending December 31. The company reported a significant 174% year-on-year surge in its consolidated net profit, which reached ₹602 crore. This impressive performance was supported by a 62% rise in revenue from operations, highlighting robust activity across its key business segments, particularly in equity derivatives, new listings, and its market-leading mutual fund platform.

Financial Performance Deep Dive

The exchange's financial metrics for the quarter reflect strong operational efficiency and revenue growth. Revenue from operations climbed to ₹1,244 crore, a substantial increase from ₹768.1 crore in the same period last year. This growth directly contributed to an expansion in profitability, with the net profit margin widening to 45% from 26% a year ago. The consolidated operating EBITDA, which includes income from the Core Settlement Guarantee Fund, tripled on a year-on-year basis to ₹732 crore. Consequently, the operating margin saw a remarkable expansion, moving to 59% from 31% in Q3 FY25, indicating improved cost management and higher operating leverage.

Derivatives Segment Fuels Growth

A primary catalyst for BSE's strong quarterly performance was the explosive growth in its equity derivatives segment. The exchange recorded an all-time high of 772 crore equity derivatives contracts traded during the quarter. This surge in volume generated ₹784 crore in revenue, marking it as a key contributor to the top line. The growth was particularly supported by increased participation in Sensex index options, which helped the index derivatives segment achieve a record average daily premium turnover of ₹19,459 crore.

Robust Primary Market Activity

BSE's role in capital formation was prominent during the quarter. The exchange welcomed 99 new equity listings across its mainboard and SME platforms, through which companies collectively raised ₹97,657 crore. For the fiscal year 2026, BSE's various fund-raising platforms have enabled companies to mobilize a total of ₹22.4 lakh crore across different instruments, including equity, debt, bonds, and mutual funds. The third quarter alone saw 39 companies raise ₹95,272 crore, underscoring the vibrant state of the primary markets.

SME Platform Achieves New Milestone

The BSE SME platform continued its strong growth trajectory, crossing its 700th listing on February 1, 2026. The platform's accelerating momentum is evident from the fact that the last 100 listings were completed in just 179 days. To date, small and medium-sized enterprises listed on the BSE platform have collectively raised ₹14,735 crore and command a combined market capitalisation of ₹1.8 lakh crore, highlighting the platform's success in providing a growth avenue for smaller companies.

Dominance in Mutual Fund Transactions

BSE StAR MF, the exchange's mutual fund distribution platform, solidified its leadership position. The platform processed 21.7 crore transactions in Q3 FY26, a 21% increase year-on-year. This performance helped BSE maintain a dominant market share of 87.4% in the mutual fund transaction processing space. The platform also set a new record in January 2026 by processing 7.97 crore transactions in a single month. Revenue from the BSE StAR MF segment grew 14% year-on-year to ₹72.5 crore.

Key Financial Metrics (Q3 FY26 vs Q3 FY25)

Strengthening Infrastructure and Services

Beyond its financial achievements, BSE has also focused on enhancing its technological and service capabilities. The exchange recently completed upgrades that increased its trades-per-second capacity nine-fold, significantly improving risk management and processing abilities. Its clearing subsidiary, ICCL, reported a strong quarter, settling an equity turnover of ₹8.14 lakh crore and handling 364 crore derivatives contracts. Furthermore, BSE Index Services has expanded its portfolio to over 200 indices, with passive assets under management reaching ₹2.7 lakh crore across 85 schemes. The recent launch of 50 new indices and regulatory approval for two debt indices signal a strategic expansion beyond equities.

Conclusion

BSE Ltd's third-quarter results demonstrate a period of exceptional growth across all major business verticals. The record-breaking performance in the derivatives market, coupled with sustained momentum in listings and the mutual fund platform, has delivered a significant boost to profitability and operational efficiency. As stated by MD and CEO Sundararaman Ramamurthy, the exchange is focused on accelerating innovation across its businesses, positioning it well to capitalize on the continued growth of India's capital markets.