BSE shares fall 2% despite two-fold jump in net profit; here’s why

Shares of BSE slipped nearly 2% in early trade on Friday even after the country’s oldest stock exchange reported robust earnings in the June quarter of the current fiscal. The weakness in BSE shares was largely due to a sell-off in benchmark indices, with the Sensex falling by as much as 538 points to 80,085, while the NSE Nifty slumped 164 points to 24,431 in the first two hours of trade.

Snapping a two-session gaining streak, BSE shares declined by as much as 2.45% to ₹2,382.30 on the NSE, while its market capitalisation slipped to ₹97,676 crore. The counter witnessed strong volume as nearly 40 lakh shares changed hands in less than two hours of trading.

Earlier this year, the BSE shares had touched its 52-week high of ₹3,030 on January 10, 2025, rebounding strongly by 288% from its 52-week low of ₹780.63 hit on August 7, 2024. The counter has risen 33% in calendar year 2025; 28% in the past six months; and 177% in the past one year. The counter has lost over 3% in the past one month.

BSE released its June quarter earnings report after market hours on Thursday, achieving a ₹1,000 crore quarterly revenue milestone for first time ever, while net profit more than doubled.

The exchange, which recently completed 150 years of operations, posted consolidated net profit of ₹538 crore in Q1FY26, up 104% as compared to ₹264 crore in the corresponding period last year.

Total income jumped 56% to ₹1,044 crore in the April-June quarter of FY26, from ₹668 crore in the corresponding period of the last fiscal, BSE said in a release.

“The stellar performance in Q1FY26 of more than Rs 1,000 crore is the best quarterly top line performance for the company. It also coincides with another historic milestone, viz., the completion of 150 years of operations,” said Sundararaman Ramamurthy, MD & CEO, BSE.

For Q1FY26, operating EBITDA surged 122% to ₹626 crore, while margins improved significantly to 65% from 47% in the year-ago period.

According to the company, revenue growth in Q1FY26 was led by strong volumes in its Sensex derivatives product as the exchange expanded its client base and drove higher non-expiry day activity. However, volumes in the equity cash segment declined to ₹7,180 crore in Q1FY26, from ₹9,005 crore in the year-ago period. 

“The BSE Index Derivatives segment sustained its growth trajectory in the quarter with highest ever average daily premium turnover of ₹15,084 crore for the quarter as we expanded our client base and drove higher non-expiry day activity,” said a release.

The mutual fund business, BSE StAR MF, reported 30% YoY growth in revenue to ₹61.2 crore. The total number of transactions processed by BSE StAR MF grew by 30% to reach 183 million transactions in Q1FY26 from 141 million in the previous year. “On an average, the platform processed 6.09 crore (60.9 million) transactions per month in the current financial year as compared to 4.70 crore (47 million) last year. The platform also processed a new high of 6.65 crore (66.5 million) transactions in July 2025,” the release noted. 

In Q1FY26, BSE welcomed 21 new equity listings across the main and SME boards, raising a ₹14,237 crore. The IPO market was exceptionally vibrant in July 2025, with 13 companies raising ₹24,559 crore and it is expected to remain robust on account of economic growth and investor confidence, the release noted.