Some of the Q3 SGF was reversed due to adjustments.
Quarterly NP is touching ~400Cr, or yearly ~1500Cr or EPS of ~100Rs. PE ratio of 63 (@6300/share) seems stretched now.
AGM is on Aug 20th
Dividend is ONLY Rs.18 + Rs. 5 (special dividend), total of Rs.23/share, the Record Date is May 14, payable after AGM by Sept 18th 2025. Since Record date is next week, BSE Bonus shares will not get dividend (smart move by mgmt )
Consolidated EBITDA has grown hugely, 1778 Cr vs 608 Cr YoY.
Lot of Cash generation have grown quite well in BS, but dividend seems to be disappointing, esp in 150th year. Are they hoarding it for any capex needs? [Edit - Why the percentage of dividends payout is lower, CEO explained that they have spent 500cr on technology related to clearing, etc and that has already given the return to that fold. Balance between 1) Customers want confidence in the exchange and its clearing facilities, 2) A strong sound balance sheet.]
Common Contract Note - This the CEO has been stressing is needed, but I am not sure if this will benefit BSE or not.
The numbers seems to be largely in line with the analysis made back in April. The standalone revenue has grown by approximately 10% as compared to Q3.
The numbers for the quarter will remain as a benchmark for the days to come. At this level BSE is poised to attain an annual profit in excess of Rs. 1500 crore for next FY. Market is expecting another blockbuster year 2026 which is evident from the recent share market performance.
The only concern I have at this stage is the dividend payout ratio below 25% of annual profits. Not sure why the management is retaining nearly 800 crore of profits - note that historically BSE had paid out nearly all of the standalone profits it made annually. It would be interesting to understand how managment is planning to deploy these funds.
AJ
Disclaimer: Remain invested. No recent transactions.
According to NSE management in latest concall, this loss of share in options share due to change in regulations has run its course. At some point and equilibrium will definitely come. Will it be 80% or 70% or even 60%? Because it cannot be like BSE takes more than 50% from NSE.
To get a better perspective on Options Marketshare of BSE (other segments are kind of irrelevant due to their share being less than 10% vis a vis NSE, those are optionalities), I compiled the below data. Some observations:
NSE market shared has dipped from 91% to 79% in last 14 months, losing to BSE
NSE avg daily options premium turnover had dipped from 60K Cr odd to 47K Cr in Feb-25, now has recovered to 60K Cr odd levels.
NSE peak monthly options premium turnover was 15L-16L in Jun-Jul 24. It is now at 9L-11L range.
BSE avg daily options premium turnover has been trending upwards to 15-16K in Apr & May. May has data for only 10 trading days. Also note - Tariff war, Indo-Pak conflict had elevated VIX since Apr 1st week, so the turnover could be higher due to this factor.
BSE on track to do 300K Cr monthly options premium turnover, might cross 10L Cr for the quarter.
While BSE’s historical performance has been impressive, the core investment thesis was based on the rate of change — the pace at which traders migrated from NSE to BSE, largely driven by regulatory support. That phase of rapid displacement now appears to be largely behind us.
Today, BSE has already captured close to 40% market share in terms of contracts traded, and about 35% in notional turnover. These were the more accessible milestones, as both metrics naturally tracked each other due to the similarity in contract design and the influx of traders moving platforms. This shift reflected the easier part of the transition — where low friction and regulatory nudges made it convenient for traders to adopt BSE.
However, the real challenge lies in premium turnover, where BSE’s share remains at around 25%. This is the most meaningful metric when it comes to evaluating true liquidity and depth. Premium turnover reflects where serious capital is being deployed — especially by larger, more sophisticated traders — and this doesn’t change quickly. Unlike contracts or notional, premium share improves only when the market consistently offers tight spreads, depth across strikes, and confidence in execution quality.
Given that much of the initial migration has already happened, we are now entering a phase of structural, gradual growth. Without a fresh regulatory push, the pace of change from here is unlikely to be as sharp as before. The duopoly between NSE and BSE is approaching saturation, with a 50:50 split in contracts possibly being the upper bound. From here on, any gains in premium share will be slower, and driven by operational strength and liquidity quality — not regulation.
The attached charts support this view. Would love to hear your take on how fast, realistically, BSE can gain premium market share from here. What does an Investor from here bet on?
I agree with you , It will be tough to improve from 25 to 30 pc but I have faith in execution capabilities of their MD Mr Murthy , On the contrary NSE management is not good as Mr Chauhan who did nothing with BSE is in NSE
My sense is by end of this year premium market share should improve to around 30 -32 pc and following year around 37-38 pc
My sense is around 37-38 pc premium market share it should stabilise
Next phase of growth shall come from increase in market share from cash segment , co - location fees , INX
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