BSE shares hit new high: Analysts raise price targets after solid Q3; STT may dent volumes

BSE shares target price: Brokerage firms continue to remain positive on BSE Ltd after the exchange reported a strong quarterly performance in the December 2025 quarter. Select analysts have upped their price target for the multibagger counter suggesting up to 17 per cent uspide in the stock.

BSE reported a 175 per cent year-on-year (YoY) surge in the net profit at Rs 601.81 crore, while its revenue increased 62 per cent YoY to Rs 1,244.10 crore for three-months ended on December 31, 2025. The leading exchange's ebitda more than tripled  to 732 crore, while margins improved to 59 per cent for the reported period.

Shares of BSE rose another 1.65 per cent to Rs 3,227 on Wednesday, hitting its 52-week high, with its total market capitalization nearing Rs 1.3 lakh crore. The stock had settled at Rs 3,174.20 on Tuesday, rising more than 6 per cent for the day. The stock corrected over 2.3 per cent from day's high to Rs 3,152.50.

According to the data from National Stock Exchange of India, shares of BSE have surged nearly 4,650 per cent in the last five years, while the stock is up 1,800 per cent in the last three years. It has gained nearly 85 per cent in the last one year, while the counter is up 20 per cent in 2026 so far.

Analysts believe that BSE posted a strong Q3FY26, driven by record growth in index derivatives, with Sensex options emerging among the world’s most actively traded contracts. Healthy cash market volumes, operating leverage and momentum in corporate services lifted profitability. Higher STT and regulatory fine-tuning could moderate volume growth but long-term prospects remain robust.

BSE is well-positioned for sustained high revenue and margin growth. Index derivatives was the standout  performer with record average daily premium turnover of Rs 19,459 crore, up 30 per cent QoQ. Sensex index options are now among the most actively traded contracts globally. Cash volumes remained healthy at Rs 7,645 crore vs Rs 6,800 YoY., said Mirae Asset Sharekhan.

"BSE is positioned for sustained growth due to expansion in the derivatives segment and robust growth across cash and mutual fund platforms. Strategic investments  in data infrastructure and a focus on product  diversification also drive long-term earnings visibility.  Coupled with operating leverage and a vibrant IPO pipeline outlook remains strong, we maintain a positive view with a revised price target of Rs 3,600," it added.

BSE delivered a robust Q3FY26 performance, driven by strong average daily turnover (ADTO) growth. Q3 was characterized by robust traction in options ADTO and good momentum in corporate services. Opex was largely in line with revenue, resulting in EBITDA (excluding SGF) of Rs 780 crore.

"Key focus areas include cash market share gains; outcome in newer verticals and SGF fund contributions alongside regulatory fine-tuning. BSE remains a potent play on broadening India’s financial participation and market infrastructure evolution; while regulatory uncertainty poses an overhang, we view these risks as transitional," it added with an 'accumulate' rating and higher target price of Rs 3,408.

BSE enjoys strong prospects of volume growth across segments (options, cash as well as MF platform), led by derivatives, which has been our investment thesis for the stock. This, along with the prospects of improvement in costs, has led to quarterly Ebitda (ex-SGF) ascending from Rs 116 crore in Q1FY24 to Rs 840 crore in Q3FY26, said ICICI Securities.

"Our estimates now factor in a moderation in systemic volume growth, post the implementation of higher STT and less than earlier likely gain in market share, leading to FY27E/FY28E PAT of Rs 2,830 crore/Rs 3,250 crore. We believe possible regulatory changes remain a key risk to earnings," it added with a 'hold' rating with a revised target price of Rs 3,100 (Rs 2,750 earlier).