BSE shares climb 7% as F&O momentum drives Q3 results; here are target prices

Shares of BSE Ltd rose 7 per cent in Tuesday's trade after the stock exchange’s December quarter results met analyst expectations. BSE’s futures and options (F&O) volumes doubled year-on-year (YoY), supporting higher transaction charges. Analysts remain neutral to positive on the stock, with target prices in the Rs 3,300–3,800 range. 

Following its results, shares of BSE climbed 6.8 per cent to hit a high of Rs 3,188.40 apiece on NSE. "We raise EPS estimates by 8-10 per cent on better volumes, projecting robust FY25–28E revenue/EPS CAGRs of 30 per cent/36 per cent. We maintain an ADD rating with a revised target of Rs 3,310," said HDFC Institutional Equities.

BSE reported a 174 per cent YoY surge in the net profit at Rs 601.80 crore on 62 per cent YoY jump in sales at Rs 1,244.1 crore for the December quarter. Transaction charges jumped 86 per cent YoY, due to 122 per cent growth in charges from derivatives and 14 per cent growth in Star MF. These were offset by a 16  cent YoY dip in cash segment charges, MOFSL said.

"We raise our earnings estimates by 5-15 oer cent for FY26-28, factoring in higher volume assumptions for the derivatives options segment based on the January run rate offset by lower colocation revenues and a higher expense growth trajectory. We reiterate our Neutral rating on the stock with a target of Rs 3,350," MOFSL said.

The domestic brokerage said stock options are being evaluated by BSE for product diversification, while its primary focus remains on strengthening cash market volumes and improving traction beyond weekly options. Colocation revenue is expected to remain stable at Rs 48 crore per quarter, with plans to increase racks to 500, it said.

Nuvama said BSE delivered Q3FY26 index options Average Daily Premium Turnover (ADPTV) market share of 29.4 per cent despite expiry swap in September 2025. Operating leverage drove Ebitda margins up 443 basis points YoY to 60.8 per cent, resulting in Ebitda growth of 73.5 per cent. 

"Given continued strong volumes, we are raising FY26–28E ADPTV resulting in an increase in our FY26-28E estimates by 8.2-21.9 per cent; consequently lifting our target to Rs 3,760 (earlier Rs 3,130) i.e. PE of 45 times plus 15 per cent stake in CDSL," it said.