NSE, NSDL will list only on the BSE and
BSE, CDSL will list only on the NSE. Is this true ??
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Yes thats correct. Even if in future when NSE gets listed, it can be transacted only on BSE.
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And the results are out..
The expectations are largely met with derivatives revenue at 598 Crore for the quarter and overall revenue hitting the magic figure of 1000 crore.
I hope the numbers for Q1 will remain the benchmark for the days to come. Equity market performance will show an improvement during Q2 due to the listing of NSDL. I believe BSE will continue to grow slow and steady just like the way HDFC performed during the 2000-2020 period.
Miles to go before we sleep!
Read the investor presentation here.
AJ
Disclaimer: Remian Invested. Views are biased.
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BSE declared their Q1 results today.
Results Link
Investor Presentation Link
Few Observations:
- 526Cr NP (from continuing operations) for Q1FY26 vs 493Cr (QoQ)
- No SGF contribution this qtr, need to see for Q2.
- 598Cr revenue in Equity Derivatives vs 474Cr (QoQ)
- 15,083Cr AD Premium T/o this qtr vs 11,782Cr (QoQ)
- Consolidated EBITDA is 712Cr in Q1, Entire FY25 it was 1778 Cr. Are we going to double this in FY26 if this same volume remains (no growth) for next 3 Qtrs?
- Clearing and Settlement expense dropped down to 55Cr vs 61Cr (QoQ). This line item + the revenue of their clearing house subsidiary needs to be watched for the CCN “Common Contract Note” implementation impact. My earlier writeup on CCN here.
- Jane Street impacted June and July volumes in FNO, volumes seem to have recovered in Aug, but need to see how this trend keeps up.
Other Updates:
- NSDL got listed this week on Wed (nice timing). NSDL did Rs.3,366Cr and Rs.5,332Cr CASH market volumes in last 2 trading days. BSE was doing Rs.7,180Cr Avg Daily Turnover for all the remaining listed stocks
- Q1FY26 revenue in Equity CASH was 54.5Cr (for the 7,180Cr ADTV). I am not saying NSDL T/O volume will sustain, but it brings all NSDL CASH traders/investors to BSE platform. Add the guys in FNO for NSDL. Will they stick around for trading in other contracts?
- NSDL will be eligible for Stock FNO on BSE, only criteria is it has to be listed for 6 months. I am not sure if SEBI exception approval can be done by BSE in this case. Look at the BSE Stock Options Premium T/O and Futures T/O this month below:
CDSL alone on NSE has a ~900Cr/day Turnover in Futures + a few Cr in Options Premium Turnover.
My earlier writeup on the CASH Market Calculation for reference, link here.
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Can we have a comparison of BSE and NSE?
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Any clues how the extension of tenure of weekly options as speculated by SEBI chief will impact the earnings of both NSE and BSE?
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If SEBI allows longer-tenure weekly options, NSE (already dominant in F&O) benefits more due to higher trading volumes. BSE could also gain but at a slower pace since its market share is still small. In short - positive for both, but NSE gets the bigger boost, BSE just incremental.
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if its a ‘positive’, i wonder why BSE share price collapsed after this news came out?
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From my limited perspective, it seems that the near-term outlook for the BSE is negative. Derivatives constitute a significant portion of the exchange’s earnings, and a shift toward longer-dated contracts is likely to reduce trading frequency. This change could lead to lower volume spikes on expiry days, ultimately compressing revenues for both the exchanges and brokers.
BSE is particularly exposed to earnings risks due to the anticipated decline in F&O volumes, which could result in a hit to profitability and potential loss of market share.
As a result, market sentiment and positioning regarding BSE will likely remain neutral to negative until more clarity is achieved.
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Intermediate Update - End of Week 1 of new expiry setup. Still early days, and numbers will take 1-2 months to show a good trend or stabilize.
- Before change, Aug Premium T/O data showed significant recovery to 17K Cr avg/day. July was 12K/day, which seems to have bottomed out.
- After expiry change, Sept has averaged 20K/day in 1st week. There was bit of volatility due to multiple new factors (GST, etc). Need to see how this 20k/day avg volume sustains going forward.
Cash market volumes are not any significantly higher than pre-NSDL listing. Not much to see as of now.
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Both BSE and NSE had a good expiry week. Both saw growth in volumes and premium turnover. It would be interesting to see how this change works out for both the exchanges.
Cash Market volumes not picking up is really disappointing to say the least.
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BSE had more to gain then NSE as Per Data. NSE Smartness Backfired. Been Seeing Liquid Options Even in 4 DTE Sensex Option Now.
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The data of the first expiry week has been very encouraging. NSE fought tooth and nail for Tuesday and we can already see that BSE did almost same, albeit somewhat better than what it did before by getting Thursday. I am thinking the comments of BSE management were right that Thursday is the most common day for expiry for most traders and the mindset shift will not happen easily to Tuesday. It will be interesting to see next week’s data but I’m thinking BSE will continue to gain market share.
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https://x.com/Nithin0dha/status/1973661706070147274
Might be helpful for BSE
I don’t think this would directly translate into top line or bottomline for BSE. BTW guys any idea if BSE is trying to do something with India INX like NSEIX is doing. NSEIX is going to introduce 0DTE options on USD Denominated Gift Nifty from 13th October 2025.
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NSE continues to dominate with over 90% share in cash. Does this mean BSE grew from the measly 5-6% it held?
BSE has continued to make inroads into options segment which is a plus. the regulatory headwinds seems to have had moderate impact.
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BSE (Total Options Premium Turnover market share %) hovering near the 25% mark now, compared to 21% at the beginning of the year. It’s a slow steady creep, despite all the regulatory flux.
Oct is for just 2 days, with one BSE expiry on Oct 1st, so dont jump at the 35% number :)
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Q2 Update:
Derivatives: The average daily turnover was approximately 15,000 as compared to 15,500 Crore for Q1 - interestingly the total trading days during the current quarter were more than Q1 and have also noted uptick in the total contracts traded during the current quarter. I expect the revenue from this segment to be about the same as what was reported during the earlier quarter with possibility of a slight uptick.
Star Mutual Fund: The mutual fund numbers have shown robust growth as compared to Q1. I expect the revenue to be approximately 10% higher as compared to Q1.
BSE Star MF - Market Summary
Equity segment: Segment has again started gaining some momentum..
The revenue from the segment should be showing a reasonable growth largely in line with the growth in volume.
IPO Market: IPO market surged during Q2 with nearly 100 IPO’s as compared to about 25 companies during the earlier quarter. The revenue from the segment should show meaningful growth.
Colocation racks: Another 50-100 racks would have been added during the current quarter with the company having a full year target to reach a total of 500 racks. This segment should be delivering robust growth. Note that the racks addition will have a direct impact on the number and quality of clients exercising the market resulting in proportionate increase in F&O turn over.
Overall, I expect the standalone revenue number to be in the range of 1K Cr with profit figures slightly better than Q1 subject to any one-off’s.
Disclosure: Remain invested - no recent transactions.
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October Update on Options Data (Note- BSE has 5 expiries this month, compared to 4 for NSE):
- BSE has 26% share in PTO, up again after a slight hiccup in Sept on expiry day change.
- BSE has 46% share in Total Option Contract Volume.
- Average daily PTO was 20K in Oct compared to 15K in Sept and 17K in Aug.
Options Premium Turnover (Cr):
Total Traded Options Contracts:
BSE:
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