BSE shares jump 7% after reporting 172% YoY surge in net profit; Check the latest stock targets

Synopsis: Shares surged nearly 7% after a strong Q3FY26 performance, driven by higher transaction activity and improved operating leverage. Market cap stood around ₹1.29 lakh crore, with operating margin expanding to 59%. Brokerages raised targets up to ₹3,760, citing rising market share and strong trading momentum.

The shares of the prominent exchange in india surged up to 7 percent in today’s trading session from intraday high after the company reported healthy Q3FY26 earnings, largely driven by transaction charges.

With a market capitalization of Rs 1,29,364.51 crore, the shares of BSE Limited were trading at Rs 3,167 per share, increasing around 6.08 percent as compared to the previous closing price of Rs 2,985.10 apiece.

Q3FY26 Highlights

The shares of BSE Limited have seen significant movement after announcing its financial performance in Q3FY26, in which revenue increased by 62 percent on a year-on-year basis from Rs 768 crore in Q3FY25 to Rs 1,244 crore in Q3FY26. However, on a Quarter-on-Quarter basis, revenue increased by 16 percent from Rs 1,068 crore in Q2FY26 to Rs 1,244 crore in Q3FY26.

Moreover, net profit increased by 172 percent on a yearly basis from Rs 219 crore in Q3FY25 to Rs 597 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit increased by 7 percent from Rs 557 crore in Q2FY26 to Rs 597 crore in Q3FY26.

Over the last one year, BSE has shown strong improvement in operating performance. Operating profit rose sharply from ₹236 crore in Dec 2024 to ₹732 crore in Dec 2025. Operating margin (OPM) also remained healthy, improving from 31% to 59%, consistently staying above 57% in recent quarters, reflecting strong operating leverage and efficient cost management.

On a consolidated basis, revenue growth is largely driven by Transaction Charges, rising sharply to Rs 9,526 million in Dec’25 from Rs 7,940 million in Sept’25 and  Rs 5,111 million in Dec’24. Services to Corporates remained stable at  Rs 1,564 million. Treasury income was steady, while Other Operating and Investment Income improved sequentially. Overall, strong transaction momentum significantly boosted consolidated performance year-on-year.

BSE StAR MF platform continues to show strong growth momentum. Orders rose from 57 million in FY20 to 663 million in FY25, reflecting rapid adoption. In 9MFY26, orders increased 24% year-on-year to 601 million. Revenue also surged from  Rs 447 million in FY20 to  Rs 2,307 million in FY25, with 9MFY26 revenue up 20% YoY, highlighting sustained scalability and rising investor participation.

Brokerage Recommendations

UBS is positive about BSE as it raised its target price to Rs 3,650. It also gave a buy proposal. It mentioned that BSE achieved a higher market share in the third quarter. Its revenue also performed well, although profits were below expectations. It seems that higher STT rates would have a little impact on options volumes.

Jefferies’ rating stood unchanged at “hold,” but it revised its target to Rs 3,050 following better-than-anticipated quarterly results. Profit after tax was 5% higher than estimated due to favorable revenue and operating expenses. Although market share is playing a significant role in near-term growth, new product launches may affect the company after FY29.

Furthermore, Nuvama upgraded its rating on the company’s stock to a buy with a revised target price of Rs 3,760, a result of healthy growth in its index options business share and operating leverage. Also, revenue and EBITDA have recorded healthy growth, with these being fueled by increases in trading volumes. Moreover, its estimates for earnings have also been scaled up for FY26 to FY28.

Bombay Stock Exchange (BSE) is Asia’s earliest stock exchange and one of the most prominent financial exchange platforms in India. It plays a significant role in the formation of capital as well as wealth creation. BSE has a transparent and efficient system of trading equities, derivative products, debt instruments, and mutual funds.

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