Broker’s Call: BSE (Accumulate)

Target: ₹3,408

CMP: ₹3,174.20

Bombay Stock Exchange (BSE) delivered a robust Q3FY26 performance, with a PAT of ₹600 crore, up 173 per cent year on year, driven by strong average daily turnover (ADTO) growth. Q3 was characterised by: Robust traction in options ADTO, up about 119 per cent and good momentum in corporate services, translating into revenue growth.

The company is well-positioned to capitalise on structural growth levers as it has established a strong foothold in key verticals. With about 500 colocation racks already in place and plans to add another 80 alongside StarMF as its leading mutual fund distribution platform, the exchange boasts robust infrastructure.

In FY25, a temporary H2FY25 dip in F&O vs H1FY25 left annual ADTO largely unaffected vs FY24, with BSE indices proving resilient — Sensex options volume rose steadily. For the latest STT revision – the sharpest yet at 5 basis points for options and 3 bps for futures — BSE is well-insulated, in our view. The cash market— where the exchange has been striving to catch up — continues to be range-bound at about 6-7 per cent recently, making it a key monitorable. We expect options volume improvement to sustain, supporting near-term momentum.

After factoring in higher ADTO growth, we raise our FY27-28E EPS by 10-12 per cent each. This along with our roll over to FY28E leads to TP of ₹3,408 from ₹2,202 on 45x (from 37x) FY28E core P/E. We retain Accumulate.

Published on February 10, 2026