BSE margin improves as revenue growth outpaces costs
Year-on-year earnings growth was supported by operating leverage, while higher other income also helped the sequential profit increase.
Filed 04 Aug 2026, 18:45 IST · after market close · BSE Ltd (BSE)
Key takeaways
- Consolidated revenue grew +63.40% year on year, while expenses rose +56.41%, lifting operating margin by 1.48 percentage points.
- Operating margin recovered to 66.79%, up 0.23 percentage points sequentially, but remains below the 70.11% level recorded in Q4FY25.
- Other income contributed 13.77% of pre-tax profit, making it a meaningful part of reported earnings rather than a purely operating result.
Price around the results
Revenue growth continued, but sequential momentum was flat
Consolidated revenue rose +63.40% year on year, with operating profit increasing +67.11% as costs grew more slowly than revenue. Sequentially, revenue was nearly unchanged at +0.16%, while expenses declined -0.55%, allowing operating profit to rise +0.52%. The year-on-year comparison is the clearer measure of the quarter's operating improvement.
Margin recovery has paused the earlier decline
It also improved 0.23 percentage points sequentially, helped by lower expenses relative to revenue. However, the margin had fallen from 70.11% in Q4FY25 to 58.85% in Q3FY26 before recovering in the past two quarters, so the current level remains below the earlier peak.
Other income lifted the sequential profit comparison
Other income increased +106.49% sequentially and accounted for 13.77% of pre-tax profit, which adds a material non-operating contribution to reported earnings. The tax rate fell 0.19 percentage points sequentially, also supporting the +9.70% rise in net profit, while the year-on-year tax-rate change was only 0.03 percentage points and did not materially flatter the comparison.
BSE remains above the reported sector median
Among 49 Financial Services companies that have reported the same quarter, BSE's 66.79% operating margin was 2.36 percentage points above the sector median of 64.43%. The company was filed after market close, so there is no immediate market reaction to assess. After its last eight results, the stock rose five times and fell three times, with a median absolute move of 4.96%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,566 cr | ₹1,564 cr | +0.16% | +63.40% |
| Other income | ₹160 cr | ₹78 cr | +106.49% | +56.56% |
| Expenses | ₹520 cr | ₹523 cr | -0.55% | +56.41% |
| Operating profit | ₹1,046 cr | ₹1,041 cr | +0.52% | +67.11% |
| Operating margin (%) | 66.79% | 66.56% | — | — |
| Interest | ₹0 cr | ₹0 cr | — | — |
| Depreciation | ₹43 cr | ₹55 cr | -22.25% | +58.48% |
| Profit before tax | ₹1,164 cr | ₹1,063 cr | +9.42% | +65.91% |
| Tax | ₹291 cr | ₹268 cr | +8.59% | +66.11% |
| Net profit | ₹873 cr | ₹795 cr | +9.70% | +62.15% |
| EPS (₹) | ₹21.22 | ₹19.35 | +9.66% | +62.11% |
Operating margin of 66.79% compares with a Financial Services sector median of 64.43% across 49 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 66.79% after its recovery from 58.85% in Q3FY26.
- Whether revenue momentum improves from the +0.16% sequential growth recorded this quarter.
- Whether other income remains a material contributor relative to its 13.77% share of pre-tax profit.