BSE Stock Soars 10% As Q1 Profit Grows Four-fold
BSE's Q1 EBITDA margin increaseS to a new high of 47 per cent, up from 33 per cent in the same period last year
Share price of the Asia’s oldest exchange, Bombay Stock Exchange surged 10 per cent in the Thursday trading session after the exchange reported robust Q1 earnings.
BSE stock traded with 9.5 per cent gain at Rs 2,626 in the afternoon session.
On an adjusted basis, the company's net profit increased from Rs 72.6 crore a year earlier to Rs 265 crore in the June quarter, quadrupling year-on-year (YoY).
From Rs 215.62 crore in Q1 FY24 to Rs 607.7 crore in Q1 of FY25, revenue from operations increased by more than 180 per cent.
The BSE declared an extraordinary profit of Rs 406.62 crore from the sale of a five percent ownership in Central Depository Services (India) during the April–June quarter of the previous year.
Additionally, BSE's Q1 EBITDA margin increased to a new high of 47 per cent, up from 33 per cent in the same period last year.
Furthermore, the stock exchange emphasised that it is working on uniform rates across customer categories and it would not affect the company's income.
The brokerage firm, Motilal Oswal Financial Services believed that the decision to reintroduce BSE derivatives products changed the course of history.
"Increased member participation, new product launches (stock derivatives), rising awareness about products, and a recent launch of stock derivatives would continue to drive market share gains for BSE," the brokerage stated.
The brokerage further emphasised how BSE is gaining market share in the derivatives business due to the general acceptance of its products.
However, Motilal Oswal Financial Services decided to stick with its ‘Neutral’ rating on the company with a price objective of Rs 2,700, indicating a possible upside of 13 per cent, given the uncertainties surrounding the final F&O regulations that are expected to be issued.
