Tag: Capital Markets

BSE – BSE Ltd – Q4 FY26 Earnings Call – 7-May-26

BSE’s topline growth hinges on derivatives liquidity and SOR adoption, while margins depend on capex efficiency and pricing power; bottomline resilience tied to retail/DII flows and cost discipline.

1–2 minutes

Also see: BSE – BSE Ltd – Q4 FY26 Financial Results – 7-May-26

3-Scenario Framework

📊 Base Case (60% Probability)

Key Variables: Derivatives liquidity deepens (monthly contracts → 10–12% of volumes); FPIs reach 800; SOR adoption by Q1FY27.
FY27 revenue grows 20–25% (driven by derivatives/MF), EBITDA margins sustain at 60–62%, and net profit rises 15–20%. Dividend payout ratio stabilizes at 30–35%. Capex Rs. 500–600 crore supports tech/colo expansion.

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BSE – BSE Ltd – Q4 FY26 Financial Results – 7-May-26

BSE’s FY26 delivered 63.5% revenue and 87.9% PAT growth with ₹2,58,852L FCF, debt‑free liquidity, and structural operating leverage. Risks: volume cyclicality, heavy capex via depreciation, and receivables nearly doubled. Sustainability of 60%+ PBT margins hinges on retail participation holding up beyond a possible FY26 volume peak.

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🔍 Observations

Topline

  • Revenue from operations surged 63.5% YoY (₹2,95,734L → ₹4,83,395L in FY26), driven by record derivatives and equity trading volumes on BSE.
  • Q4FY26 revenue hit ₹1,56,351L — 84.7% above Q4FY25 (₹84,664L) and 25.7% above Q3FY26 (₹1,24,410L), indicating strong sequential acceleration.
  • Total income crossed ₹5,14,810L in FY26 vs ₹3,23,631L in FY25 (+59.1%), with investment income contributing ₹29,030L (steady, non-core).

Bottomline

  • PAT from continuing operations grew 87.9% YoY (₹1,31,706L → ₹2,47,530L); including discontinued ops, total PAT reached ₹2,48,725L.
  • Q4FY26 PAT: ₹79,547L vs ₹49,304L in Q4FY25 (+61.3%) and ₹59,659L in Q3FY26 (+33.3%) — step-change profitability in the seasonally strong quarter.
  • EPS (basic & diluted) more than doubled: ₹32.18 in FY25 → ₹60.61 in FY26, despite equity base expansion from bonus/split (paid-up capital: ₹2,707L → ₹8,158L).

Margins

  • FY26 PBT margin on total income: 64.1% (₹3,29,914L / ₹5,14,810L) vs 54.0% in FY25 (₹1,74,827L / ₹3,23,631L) — a 10pp expansion.
  • Total expenses grew only 24.1% YoY (₹1,48,063L → ₹1,83,742L) against 63.5% revenue growth — strong operating leverage at work.
  • Regulatory contributions rose 58.3% (₹41,046L → ₹64,969L), tracking revenue; clearing & settlement costs actually fell 19.5% (₹34,805L → ₹28,035L), aiding margin improvement.

Growth Trajectory

  • Three-year revenue CAGR implied from FY25–FY26 alone: 63.5% — unsustainable at this rate but reflects BSE’s structural rebound in market share.
  • Depreciation jumped 40.7% YoY (₹11,298L → ₹15,896L), signalling heavy capex cycle underway (PPE nearly tripled: ₹22,217L → ₹56,259L).
  • Employee costs grew 25.9% YoY — manageable versus revenue growth, though Q4FY26 saw a dip (₹6,352L) vs Q3FY26 (₹9,336L), possibly timing-driven.
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