BSE’s stock has seen a remarkable surge, climbing 10% to reach an impressive intra-day peak of Rs 6,847.50. This notable rise follows the company’s strong quarterly earnings announcement for Q4FY25, complemented by a generous dividend payout. Influential brokerage firms are unanimous in their positive outlook, maintaining a ‘Buy’ rating on the stock.

BSE’s Stellar Performance in Q4FY25

In the latest quarter, BSE reported a significant increase in its index options average daily premium traded volume (ADPTV), achieving a market share of 21.3%—a remarkable 743 basis points increase from the previous quarter. This growth propelled the company’s revenue to Rs 846 crore, marking a substantial 73.4% year-over-year increase. The exceptional operational efficiency improved the EBITDA margin by 3,753 basis points year-over-year, reaching 57.2%, resulting in an EBITDA of Rs 484 crore.

• April 2025 ADPTV performance remained robust, showing a 31.5% increase compared to Q4FY25.
• Nuvama has raised its target price for BSE by 7%, now set at Rs 7,200, up from Rs 6,730.

Insights from Motilal Oswal

The regulatory landscape for futures and options has positively impacted BSE, fostering a rise in non-expiry trading activities and enhancing premium turnover. Additionally, a decrease in notional turnover has led to improved profitability by lowering regulatory expenses. Motilal Oswal emphasizes that factors such as increased member participation and colocation monetization will be crucial for BSE’s growth. They maintain a ‘Buy’ recommendation with a revised target of Rs 7,600, projecting a 9% and 13% increase in earnings estimates for FY26 and FY27, respectively.

Dividend Declaration

In conjunction with its quarterly results, BSE has announced a final dividend of Rs 23 per equity share. This includes a standard dividend of Rs 18 and a special dividend of Rs 5.5 for FY25. Notably, the face value of each share is Rs 2. In June 2025, the company had declared a dividend of Rs 15 per share. Currently, BSE’s total dividend yield stands at 0.24%.

Q4FY25 Financial Highlights

BSE’s financial performance in Q4FY25 showcased a staggering 364.43% year-on-year increase in net profit, reaching Rs 493.04 crore, compared to Rs 106.06 crore in the same quarter of the previous year. Revenue from operations also surged by 75% YoY, totaling Rs 846.64 crore against Rs 483.95 crore in Q4FY24.

Stock Performance Overview

Over the last five trading sessions, BSE’s shares have appreciated by 5.3%. The stock has gained an impressive 31% over the past month and has soared by 39% in the last six months. Over the past year, investors have seen their wealth grow by 141%, highlighting the strong market performance of BSE.

In summary, BSE’s robust quarterly results and strategic dividend payout have contributed to its rising stock value, making it an attractive option for investors looking to capitalize on growth in the financial markets.