On May 7, 2025, shares of BSE Ltd experienced a significant surge, rising nearly 10% as investors reacted to the company's impressive fourth-quarter results for the fiscal year 2024-25. The Bombay Stock Exchange (BSE), India's oldest stock exchange, reported a staggering net profit of ₹494 crore for the January-March quarter, marking a remarkable jump of 364% compared to ₹106.16 crore in the same quarter last year.
In addition to the impressive profit figures, BSE announced a final dividend of ₹23 per equity share, which includes a special dividend of ₹5 and a normal dividend of ₹18. This announcement reflects the exchange's robust financial performance, with total income for the quarter soaring to ₹926.4 crore, up from ₹543.3 crore year-over-year.
The exchange's performance throughout the fiscal year was equally impressive, with net profit skyrocketing over threefold to ₹1,322 crore from ₹404 crore in FY24. Total income doubled to ₹3,236 crore from ₹1,596 crore in the previous fiscal year. BSE traded 30.5 billion contracts in the equity derivatives segment, generating a total revenue of ₹1,415 crore.
Investors have responded positively to BSE's strong earnings, with the stock reaching an intraday high of ₹6,847.5 per share before settling at ₹6,658, which still represented a 6.63% increase. This surge follows a recovery of over 80% from its lows of ₹3,682 earlier in March 2025.
Market analysts have noted that BSE's stock rally was partly fueled by its competitor, the National Stock Exchange (NSE), which deferred its plan to change the expiration day for contracts from Thursday to Monday. This decision was influenced by a consultation paper released by the Securities and Exchange Board of India (SEBI). The paper proposed limiting expiries of equity derivative contracts to either Tuesday or Thursday, a move that would have affected BSE's volumes since its current expiry day is Tuesday.
Amidst this backdrop, the NSE reported a consolidated net profit of ₹2,650 crore for Q4 FY25, a 6.5% increase from ₹2,488 crore in the same quarter the previous year. However, its revenue from operations declined by 18% year-on-year to ₹3,771 crore, highlighting the competitive pressures in the market.
As the earnings season unfolds, several major companies have released their quarterly results, showcasing a mixed bag of performances across sectors. While some companies like BSE and Hindustan Petroleum Corporation Ltd (HPCL) reported strong growth, others faced challenges.
HPCL announced a standalone profit of ₹3,354.98 crore for Q4 FY25, an 18.02% increase from ₹2,842.75 crore during the same quarter last year. The company's revenue from operations stood at ₹1,18,334 crore, although it reported a slight decline in total income compared to the previous year.
On the other hand, companies like Paytm and Kajaria Ceramics reported losses and declines in profits. Paytm's loss narrowed marginally to ₹539.80 crore, compared to ₹549.60 crore in Q4 FY24, while Kajaria Ceramics' profit plummeted 58.59% to ₹43.18 crore.
Investors are closely monitoring these earnings reports as they assess the overall health of the Indian economy and its stock market. With BSE's strong performance and its strategic positioning in the market, analysts remain optimistic about its future growth prospects.
Motilal Oswal Financial Services has revised its premium Average Daily Turnover (ADTO) estimates for BSE to ₹15,700 crore and ₹19,000 crore for FY26 and FY27, respectively, indicating continued confidence in the exchange's growth trajectory. They have also raised their earnings estimates for the upcoming years, reiterating a BUY rating on the stock with a target price of ₹7,600, based on a 45 times FY27 estimated earnings per share.
Meanwhile, Jefferies India Pvt Ltd has adjusted its earnings estimates upward by 10-11%, considering stronger option revenues and improved revenues from racks. They project a compound annual growth rate (CAGR) of 21% in revenues and 27% in profit over FY25-28, indicating a positive outlook for BSE.
As the market continues to react to these developments, BSE's leadership in the sector and its strategic initiatives position it well for future growth. Investors and analysts alike will be watching closely as the earnings season progresses, with the potential for further market movements based on the results of other key players in the financial landscape.
In summary, BSE's robust earnings report and the subsequent rise in its share price underscore the resilience and competitiveness of the exchange in a rapidly evolving market. With strong financial fundamentals and a strategic approach to growth, BSE is poised to navigate the challenges and opportunities ahead in the Indian stock market.
