BSE’s Q4 margin rebounds sequentially but remains below last year
Revenue growth accelerated quarter on quarter, but expenses outpaced sales year on year and kept the operating margin 3.55 percentage points lower.
Filed 07 May 2026, 17:36 IST · after market close · BSE Ltd (BSE)
Key takeaways
- BSE’s consolidated revenue rose 84.67% year on year in Q4FY26, but expenses grew faster at 106.61%, narrowing operating margin by 3.55 percentage points.
- Quarter on quarter, revenue grew 25.67% while expenses rose only 2.13%, lifting operating margin by 7.71 percentage points to 66.56%.
- The stock fell 1.42% on the first trading day after results, a smaller move than its 4.96% median absolute reaction across the last eight result announcements.
Price around the results
Q4 revenue growth accelerated into the year-end
Consolidated revenue increased 84.67% year on year and 25.67% quarter on quarter to Rs 1,563.51 cr. Operating profit grew 75.32% year on year, slower than revenue because expenses increased 106.61%. Quarter on quarter, revenue growth substantially outpaced the 2.13% rise in expenses, driving operating profit up 42.14%.
Margin recovered from the Q3 trough, but stayed below Q4FY25
Operating margin rose 7.71 percentage points quarter on quarter to 66.56%, as revenue growth outpaced cost growth. It was still 3.55 percentage points below the 70.11% recorded a year earlier, marking a year-on-year margin setback despite higher operating profit. Other income contributed 7.3% of pre-tax profit, while the tax rate was almost unchanged year on year, so neither materially explains the profit movement.
The quarter broke a three-quarter margin slide
Operating margin had declined from 70.11% in Q4FY25 to 65.31% in Q1FY26, 63.67% in Q2FY26 and 58.85% in Q3FY26 before recovering in Q4FY26. BSE’s 66.56% margin was 7.15 percentage points above the 59.41% median for the 52 Financial Services peers that had reported the same quarter. Net profit rose 61.13% year on year, while basic EPS fell 46.25%, a divergence that warrants separate attention.
Initial market reaction was mild versus BSE’s results history
The stock declined 1.42% on the first trading day after the results and was down 1.15% on the following day. It had recovered to a 0.93% gain after five sessions and a 2.60% gain after 15 sessions. Across the last eight result reactions, the stock rose five times and fell three times, with a median absolute move of 4.96%, making the initial decline smaller than its usual result-day move.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,564 cr | ₹1,244 cr | +25.67% | +84.67% |
| Other income | ₹78 cr | ₹108 cr | -28.16% | -18.63% |
| Expenses | ₹523 cr | ₹512 cr | +2.13% | +106.61% |
| Operating profit | ₹1,041 cr | ₹732 cr | +42.14% | +75.32% |
| Operating margin (%) | 66.56% | 58.85% | — | — |
| Interest | ₹0 cr | ₹0 cr | — | — |
| Depreciation | ₹55 cr | ₹45 cr | +22.22% | +83.61% |
| Profit before tax | ₹1,063 cr | ₹795 cr | +33.71% | +61.35% |
| Tax | ₹268 cr | ₹199 cr | +34.84% | +61.38% |
| Net profit | ₹795 cr | ₹597 cr | +33.34% | +61.13% |
| EPS (₹) | ₹19.35 | ₹14.61 | +32.44% | -46.25% |
Operating margin of 66.56% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.42% | -0.80% |
| Next session | -1.15% | — |
| 5 sessions | +0.93% | +3.74% |
| 15 sessions | +2.60% | — |
| 30 sessions | +1.74% | — |
Volume on the results session was 2.15× its 20-day average.
What to watch
- Whether operating margin holds above 66.56% after the Q4FY26 rebound.
- Whether expenses continue to grow slower than revenue after the quarter-on-quarter gap of 25.67% versus 2.13%.
- Whether the gap between net profit growth of 61.13% and EPS growth of -46.25% narrows next quarter.