BSE shares fall 2% despite 62% jump in Q1 net profit to Rs 874 crore. Should you buy, sell or hold?

The shares of BSE declined 2% to their day’s low of Rs 3,550 on the NSE on Wednesday even as India’s oldest stock exchange reported a 62% year-on-year (YoY) jump in consolidated net profit to Rs 874 crore for the April-June quarter of FY27, helped by strong growth in revenue from operations and higher investment income.

BSE’s revenue from operations meanwhile rose 63% to Rs 1,566 crore in the first quarter of the ongoing financial year 2027, from Rs 958 crore reported in the corresponding quarter of the previous financial year. Investment income also rose sharply to Rs 135 crore from Rs 79 crore, while other income stood at Rs 5 crore against Rs 7 crore in the year-ago period.

The company contributed Rs 26 crore to the core settlement guarantee fund during the quarter. Total expenses rose 49% to Rs 537 crore from Rs 359 crore in the same quarter last year. Employee benefit expenses increased to Rs 87 crore from Rs 70 crore. Technology expenses rose to Rs 61 crore from Rs 50 crore.

Also Read | BSE Q1 Results: Profit soars 62% YoY to Rs 874 crore, revenue surges 63%

Nuvama on BSE share price

Nuvama maintained its ‘Buy’ call on the shares of BSE, but reduced its target price to Rs 4,090 apiece from Rs 4,570 apiece. The latest target price implies an upside potential of 13% from the stock’s previous closing price of Rs 3,618 apiece on NSE.

The brokerage said that the company reported a strong performance in Q1, but the momentum needs monitoring. Industry volumes declined due to recent regulation, Nuvama said, explaining why it reduced its FY27 and FY28 profit estimates by up to 17%, resulting in the decline in target price.

Centrum Broking on BSE share price

Centrum Broking maintained its ‘Neutral’ call on the shares of BSE, but increased its target price to Rs 3,940 apiece from Rs 3,902 apiece. The latest target price implies around 9% upside potential from the stock’s previous closing price.The brokerage said that BSE’s Q1 performance was broadly in line with expectations, with operating revenue rising 63% YoY, driven by a 93% YoY surge in the equity derivatives segment. Most other business segments also posted healthy growth, with the exception of services to corporates, it added.

“That said, BSE continues to derive a significant share of its revenue from the equity options segment, where trading volumes have been impacted by the regulatory changes effective July 1. We expect this moderation in volumes to persist, although higher investor participation and further market share gains should partly offset the impact. Operating expenses also increased sharply during the quarter. Factoring in these trends, we expect operating revenue to register a 19% CAGR over FY26–FY29E. We also forecast both reported PAT and core PAT to deliver an 18% CAGR over the same period,” Centrum further said.

BSE share price

BSE had announced its Q1 results in the post market hours of Tuesday. Earlier during the day, the shares gained more than 1% to close at Rs 3,618 apiece. The stock has gained more than 2% in a week but fell over 5% in a month. The stock is overall up 38% in 2026 so far.

In the longer term, BSE shares have gained 53% in a year, and delivered stellar returns of 1,160% in three years and 2,548% in five years. The company has a market capitalisation of more than Rs 1.47 lakh crore.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)