BSE Climbs 5% Post-Q2 as MOFSL Raises Estimates on Volume Recovery

BSE’s Q2 Growth Puts Trading Volumes Back in Focus

Higher activity lifted quarterly earnings, while brokerages look for a recovery in volumes after the recent sequential slowdown.

Quarterly earnings reflect stronger trading activity

BSE’s consolidated net profit rose to ₹807.52 crore in Q2FY27 from ₹557 crore a year earlier. Revenue from operations increased 34% to ₹1,432.66 crore, pointing to a quarter in which higher exchange activity translated into substantial growth in the top line and bottom line.

Activity was strong across the reported measures. The equity cash segment recorded its highest-ever quarterly average daily turnover (ADTV) of ₹10,494 crore. In derivatives, average daily premium turnover was ₹22,531 crore, while monthly index options premium ADTV reached a record ₹35,481 crore. These figures underline how closely BSE’s earnings are tied to trading volumes and the mix of activity on its platform.

Operating leverage supported the profit increase

Motilal Oswal Financial Services (MOFSL) said EBITDA came in at ₹980 crore, 42% higher year on year and 6% above its estimate. The brokerage attributed the beat to operating leverage: revenue growth helped profitability, with the EBITDA margin at 68.7%, about 400 basis points higher than a year earlier. EBITDA was, however, down 8% sequentially, a reminder that quarter-on-quarter performance can move with activity levels.

For investors, the distinction between year-on-year growth and sequential softness matters. The strong annual comparison shows the scale of the improvement over the year-ago quarter, while the sequential decline and brokerage commentary point to the near-term sensitivity of earnings to volumes.

Volume recovery is central to brokerage forecasts

MOFSL said CAS affected volumes sequentially but expects momentum to improve in the second half of FY27. It raised its earnings estimates by 3% for FY27 and 5% for FY28, citing a strong volume trajectory in October and the prospect of a partial reversal of CAS in December 2026. The brokerage retained its Buy rating and a target price of ₹4,200.

Those estimates depend in part on the anticipated recovery materialising. PL Capital also factored a volume recovery following the CAS revision into its FY27 operating revenue view, projecting 24% year-on-year growth. It retained a Buy rating with a target price of ₹4,015, while noting that the overhang from bank guarantee norms persists.

Costs and regulation remain part of the outlook

Revenue growth alone will not determine how much reaches the bottom line. PL Capital expects operating expenses to remain elevated as BSE continues investing in technology infrastructure and bears higher clearing and settlement costs associated with rising volumes. If activity improves, these costs could temper the earnings benefit; if volumes disappoint, the combination could make operating performance more difficult to sustain.

BSE shares rose more than 5% after the results, with the broad-based equity-market rally also supporting sentiment. The stock opened nearly 2% higher at ₹3,665 on the NSE and reached an intraday high of ₹3,773. At 10:25 a.m., it was up 4.2% at ₹3,755, with around four million shares traded and turnover of ₹1,493.83 crore. The move captures the market’s response to the earnings and volume outlook, but does not remove the execution risks flagged by brokerages.

Key Highlights

• Q2FY27 net profit increased 45% year on year to ₹807.52 crore.
• Revenue from operations grew 34% to ₹1,432.66 crore.
• Equity cash ADTV reached a quarterly record of ₹10,494 crore.
• MOFSL raised FY27 and FY28 earnings estimates by 3% and 5%, respectively.
• Brokerage target prices are ₹4,200 from MOFSL and ₹4,015 from PL Capital; both maintain Buy ratings.

Investor Note: BSE’s results show the earnings potential of stronger trading activity, but forecasts rely on volumes recovering while operating costs and regulatory uncertainties remain in view. Brokerage ratings and target prices are opinions, not guarantees; investors may assess the assumptions behind them alongside their own risk tolerance.