BSE profit rises 50.34% as operating margin reaches 67.81%
Revenue fell 8.46% sequentially, but faster expense reduction lifted margin; other income contributed 14.21% of pre-tax profit.
Filed 04 Nov 2026, 18:01 IST · after market close · BSE Ltd (BSE)
Key takeaways
- Standalone net profit rose 50.34% year on year to Rs 773.36 cr, helped by revenue growth outpacing expenses.
- Operating margin expanded 5.88 percentage points year on year to 67.81%, and stood 16.26 percentage points above the 51.55% median for 89 Financial Services peers.
- Quarter-on-quarter revenue fell 8.46%, but expenses declined faster at 11.79%, lifting operating margin by 1.22 percentage points.
Price around the results
Revenue eased sequentially but remained well ahead of last year
BSE's standalone revenue fell 8.46% quarter on quarter to Rs 1,349.32 cr, but was up 38.33% year on year. The annual growth translated into a 51.47% rise in operating profit, as expenses grew 16.96%, well below revenue growth. Management said BSE has launched 32 or more new indices since the acquisition and launched the BSE StAR NPS platform on 22 April 2026.
Lower costs supported the margin expansion
Sequentially, expenses declined 11.79%, faster than the 8.46% revenue contraction, so operating margin improved by 1.22 percentage points. Year on year, the wider gap between revenue growth and expense growth expanded margin by 5.88 percentage points. Other income accounted for 14.21% of pre-tax profit, while the quarter-on-quarter tax-rate decline of 1.08 percentage points also supported profit after tax.
Margin recovered from the Q3FY26 trough
Operating margin has risen from 60.55% in Q3FY26 to 66.81% in Q4FY26, 66.59% in Q1FY27 and 67.81% in Q2FY27, reversing the earlier decline. BSE's margin was 16.26 percentage points above the 51.55% median among 89 Financial Services peers that had reported the quarter. The results were filed after market close, so there was no immediate reported market reaction; after the past eight results, the stock was evenly split between four rises and four falls, with a median absolute move of 3.98%.
New products and partnerships broaden the operating base
Management said BSE has entered an agreement with MSCI to explore futures and options contracts in India linked to MSCI indexes. The company also disclosed a joint venture with Ebix Inc for insurance broking. These initiatives sit alongside the new indices and BSE StAR NPS platform, but their financial contribution is not reflected separately in the reported figures.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,349 cr | ₹1,474 cr | -8.46% | +38.33% |
| Other income | ₹145 cr | ₹127 cr | +13.87% | +46.66% |
| Expenses | ₹434 cr | ₹492 cr | -11.79% | +16.96% |
| Operating profit | ₹915 cr | ₹982 cr | -6.79% | +51.47% |
| Operating margin (%) | 67.81% | 66.59% | — | — |
| Interest | ₹0 cr | ₹0 cr | — | — |
| Depreciation | ₹39 cr | ₹36 cr | +8.75% | +43.53% |
| Profit before tax | ₹1,021 cr | ₹1,073 cr | -4.85% | +51.08% |
| Tax | ₹248 cr | ₹272 cr | -8.94% | +53.45% |
| Net profit | ₹773 cr | ₹801 cr | -3.47% | +50.34% |
| EPS (₹) | ₹18.77 | ₹19.45 | -3.50% | +50.28% |
Operating margin of 67.81% compares with a Financial Services sector median of 51.55% across 89 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
New products
- BSE launched 32 or more new indices after the acquisition.
- BSE launched the BSE StAR NPS platform on 22 April 2026.
New initiatives
- BSE entered an agreement with MSCI to explore launching futures and options contracts in India linked to MSCI indexes.
- BSE has a joint venture with Ebix Inc for an insurance broking business.
What to watch
- Whether revenue recovers from Rs 1,349.32 cr after the 8.46% quarter-on-quarter decline.
- Whether operating margin holds above 67.81% after the 1.22-percentage-point sequential improvement.
- Whether other income's 14.21% share of pre-tax profit changes in the next quarter.