Whalesbook
BSE's Q4FY26 financial results showed a significant 36% increase in transaction revenue compared to the previous quarter, mainly from options trading. This strong performance has led several brokerage firms to revise their outlooks upward.
HDFC Securities maintained an 'Add' rating, lifting its target price to ₹4,300 from ₹3,800, and projected significant revenue and EPS CAGRs for FY26-28. Motilal Oswal Financial Services reiterated a 'Neutral' stance with a target of ₹4,400, raising FY27/28 earnings estimates by 17/20 percent based on robust volume assumptions.
Broker Optimism on Exchange Performance
Brokerage reports highlight a surge in BSE's transaction revenue, with options premium market share improving to 27.5% in Q4FY26. HDFC Securities noted average daily trading volume (ADTV) in options reached ₹289 billion, up 49% sequentially, and expects market share to climb further. BSE is also aiming to double its cash market share and significantly increase foreign portfolio investor (FPI) participation.
Stock Underperforms Despite Positives
Despite the optimistic analyst views and raised targets, BSE's stock declined nearly 1.5% on Friday, closing at ₹3,905. Analysts pointed to the need for BSE to gain market share on non-expiry days, not just expiry days. The exchange's quarterly results also included a provision for an old outstanding receivable from NSE, which impacted other expenses.
Regulatory Update from SEBI
Separately, the Securities and Exchange Board of India (SEBI) announced on Friday that it will implement a 30-day lag for sharing price data for educational purposes, effective July 1. The National Institute of Securities Markets (NISM) will have access to data with a one-day lag for its simulation lab.