BSE Q3 Results: Net Profit Jumps 174% to Rs 602 Crore

Introduction to BSE's Strong Quarter

BSE Ltd, India's premier stock exchange, announced a robust financial performance for the third quarter of the fiscal year 2026, ending in December. The company reported a consolidated net profit of Rs 602 crore, marking a significant 174% increase from the Rs 220 crore recorded in the same quarter of the previous fiscal year. This substantial growth highlights a period of heightened market activity and strong operational execution, reinforcing the exchange's pivotal role in the Indian capital markets.

Detailed Financial Performance

The exchange's revenue from operations saw a substantial rise, reaching Rs 1,244 crore in Q3 FY26. This represents a 62% year-on-year growth compared to the Rs 768 crore posted in the corresponding period of the last financial year. The performance also showed sequential strength, with the net profit growing 8% from Rs 558 crore in Q2 FY26. Similarly, the top line increased by 16% from the Rs 1,068 crore reported in the preceding quarter, indicating sustained momentum in business operations.

Operational Efficiency and Margin Expansion

A key highlight of the quarter was the dramatic improvement in operational efficiency. The consolidated operating EBITDA, which includes income from the Core Settlement Guarantee Fund (SGF), tripled on a year-on-year basis to Rs 732 crore. This surge in profitability led to a significant expansion in operating margins, which climbed to 59% in Q3 FY26 from 31% in the same quarter of the previous year. This improvement underscores the company's ability to leverage its scale and manage costs effectively amidst growing business volumes.

Growth Drivers: Derivatives and Mutual Funds

The equity derivatives segment was a standout performer, with the exchange recording a massive 772 crore contracts during the quarter. This activity generated Rs 784 crore in revenue, contributing significantly to the top line. Another major contributor was the BSE StAR MF platform, India's largest mutual fund distribution platform. It registered a 21% year-on-year increase in total transactions, reaching 21.7 crore, and maintained a dominant market share of 87.4%. The platform's revenue grew 14% year-on-year to Rs 72.5 crore, processing a record 7.97 crore transactions in January 2026 alone.

Capital Raising and SME Platform Milestone

BSE's platforms continued to be a crucial channel for capital formation. In Q3 FY26, 39 companies raised Rs 95,272 crore. The exchange also welcomed 99 new equity listings across its main and SME boards. The BSE SME platform achieved a significant milestone, crossing its 700th listing on February 1, 2026. Companies listed on this platform have collectively raised Rs 14,735 crore and currently command a combined market capitalization of Rs 1.8 lakh crore, demonstrating its success in fostering growth for small and medium enterprises.

Market Activity and Volume Analysis

The quarter was characterized by robust trading activity. Cash market volumes stood at Rs 7,645 crore. The index derivatives segment achieved a record average daily premium turnover of Rs 19,459 crore, largely driven by the growing popularity of Sensex index options. This reflects increasing participation from retail and institutional investors in the derivatives market, a key growth area for the exchange.

Clearing, Settlement, and Technology Upgrades

BSE's clearing subsidiary, Indian Clearing Corporation Ltd (ICCL), successfully managed the surge in volumes. It reported an equity settled turnover of Rs 8.14 lakh crore and an equity derivatives premium turnover of Rs 12.57 lakh crore. ICCL settled a total of 364 crore derivatives contracts during the quarter. To support this growth, BSE has invested in technology, including a nine-fold increase in its trades-per-second capacity, which has enhanced its risk-management and processing capabilities.

Expansion of Index Services

BSE Index Services has also expanded its offerings, growing its portfolio to over 200 indices. These indices now serve as benchmarks for 85 passive schemes with a total passive Assets Under Management (AUM) of Rs 2.7 lakh crore. Since acquiring SPDJI's stake, the company has launched 50 new indices and secured RBI approval for two debt indices, diversifying its product suite beyond equities.

Conclusion and Forward Outlook

BSE Ltd's third-quarter results for FY26 demonstrate exceptional growth across all key financial and operational metrics. The 174% surge in net profit, coupled with strong revenue growth and margin expansion, reflects a vibrant capital market and the successful execution of the company's strategic initiatives in derivatives, mutual fund distribution, and SME listings. With significant technology upgrades and an expanding product portfolio, BSE is well-positioned to capitalize on future market opportunities and continue its growth trajectory.