BSE shares hit fresh record high on strong Q3 earnings performance

BSE shares rose more than 6 per cent to a fresh all-time high after the exchange posted strong Q3 earnings, aided by higher transaction income and gains in the derivatives segment

Shares of BSE Ltd rallied 6.3 per cent on Tuesday to close at a fresh all-time high of ₹3,172, as investors cheered a strong operating performance in the December 2025 quarter and sustained momentum in the exchange’s derivatives business.

 

The stock gained after BSE reported a sharp jump in revenues and profits, driven largely by higher transaction income amid rising options market share and a recovery in industry volumes. Revenue rose 16.4 per cent sequentially and 60.8 per cent year-on-year in the quarter, while adjusted profit after tax stood at ₹6.5 billion, ahead of some Street estimates.

 

Transaction revenue, which accounts for about 77 per cent of BSE’s total revenue, jumped 26 per cent quarter-on-quarter, supported by continued gains in the options segment.

 

 

BSE’s options premium market share improved to 26.8 per cent in the December quarter from 24.4 per cent in the September quarter, with premium average daily traded value (ADTV) rising 30 per cent sequentially to ₹19,500 crore. The market share further increased to around 30 per cent in January 2026, according to a note by HDFC Securities.

 

Colocation revenue remained steady at about ₹48 crore, and the exchange said it plans to add 20 more racks by the March quarter, taking total capacity to 500 racks to support future growth.

 

Brokerages raise earnings estimates between 5 per cent and 10 per cent, factoring in better than expected volumes in the derivatives segment.

 

HDFC Securities projects revenue and earnings per share growth of about 30 per cent and 36 per cent, respectively, over FY25-28, and has maintained an ‘add’ rating on the stock with a revised target price of ₹3,310.

 

Motilal Oswal, meanwhile, has raised its earnings estimates for FY26-FY28 by 5-15 per cent, citing higher options volumes, but reiterated a ‘neutral’ rating on the stock with a target price of ₹3,350, premised on 38 times FY28 estimated earnings.