Bombay Stock Exchange (BSE) is set to announce its Q3FY25 results today, with analysts expecting a blockbuster quarter driven by a surge in transaction income, record premium turnover, and cost efficiencies. According to Zee Business estimates, the exchange is likely to post a 104 per cent YoY jump in revenue to Rs 759 crore, while net profit may surge 252 per cent YoY to Rs 369 crore.
Revenue and profit set for massive surge
BSE’s revenue growth has been fueled by strong momentum in the options segment, increased transaction income across cash, derivatives, and mutual fund (MF) segments, and continued traction in new listings. The company’s EBITDA is projected at Rs 420 crore, up 356 per cent YoY, reflecting margin expansion due to lower regulatory and clearing costs. EBITDA margin is expected to stand at 55.4 per cent, a sharp jump from 25 per cent last year.
Premium turnover at a record high
Despite regulatory changes impacting notional turnover in the derivatives market, BSE has managed to achieve its highest-ever premium turnover-to-notional ratio in December 2024, driving revenue growth. The average daily turnover (ADTO) premium rose to Rs 8,800 crore in Q3FY25 from Rs 8,200 crore in the previous quarter, despite an 18 per cent drop in notional ADTO.
Cost efficiencies supporting profitability
The reduction in regulatory and clearing charges has provided a significant boost to BSE’s bottom line. With lower settlement fees linked to notional turnover, the exchange is benefiting from better cost structures, leading to higher margins and profitability.
Regulatory changes remain a key monitorable
While BSE has reported exceptional growth, the impact of evolving SEBI regulations in the F&O segment remains a key factor to watch. Analysts are keeping an eye on potential moderation in equity derivatives volumes, which could influence future profitability.
Market share expansion in the options segment
BSE’s market share in the options segment has been steadily rising, reaching 29 per cent in notional turnover and 15 per cent in premium turnover in December 2024, compared to 27 per cent and 13 per cent, respectively, in September 2024.
Outlook remains strong
BSE’s Q3 earnings are expected to reflect its resilient business model, strong transaction revenue growth, and expanding market share. With a focus on cost efficiency and innovation, the exchange remains well-positioned for sustained growth.
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