BSE stock jumps over 5% today after Q2 profit rises 61%; Jefferies bullish, Goldman neutral

Shares of BSE Ltd jumped nearly 5 percent in the opening trade on Wednesday (November 12) after the exchange operator reported a 61 percent year-on-year rise in consolidated net profit to Rs 558 crore for the September quarter of FY26, driven by higher trading and platform revenues.

BSE stock rose to Rs 2,770 in the early morning trade, extending the previous day's 0.7 percent gain. With today's rise, the stock has gained about 78 percent over the last one year. Brokerages offered a mixed outlook on the stock, with Jefferies maintaining a ‘buy’ and Goldman Sachs staying ‘neutral’.

BSE Q2 performance summary

BSE’s consolidated revenue rose 44 percent year-on-year to Rs 1,068 crore, while EBITDA surged 78 percent to Rs 691 crore, taking the margin to 64.7 percent from 52.4 percent a year earlier. The company said key growth drivers included its trading segments, mutual fund platform, and other platform services. Net profit and revenue also improved sequentially.

• Also read | Nifty stages triple-digit jump, Sensex opens gap-up on trade deal hopes, likely NDA win in Bihar

Brokerage views

Jefferies retained a buy rating with a target price of Rs 2,930 per share, noting that BSE’s 61 percent profit growth was in line with expectations. The brokerage said growth in index derivative volume and revenues offset a decline in the cash segment. It also highlighted that BSE’s policy to contribute 5 percent of derivatives revenue to the Settlement Guarantee Fund (SGF) was lower than previously estimated.

Goldman Sachs kept a neutral stance with a target price of Rs 2,460. It said BSE’s underlying earnings per share for the quarter stood at Rs 13.6, about 3 percent above its estimate. Operating revenue rose 12 percent quarter-on-quarter and 44 percent year-on-year, while operating expenses increased 14 percent QoQ and 7 percent YoY. The brokerage noted that underlying profit after tax grew 6 percent sequentially and 62 percent year-on-year, also slightly ahead of its forecast.

---

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.