Asia’s first Stock Exchange and one of India’s leading exchanges, located on Dalal Street in Mumbai, facilitates a market for trading in equity, currencies, debt instruments, derivatives, and mutual funds, making it a player worth watching closely.
We’re talking about BSE Limited (Bombay Stock Exchange), established in 1875. The company provides a platform for capital-raising, trading in equity, debt instruments, derivatives, mutual funds, and equities in small and medium enterprises (SMEs).
In this article, we’ll take a closer look at the company’s financial performance, key ratios, latest updates, management outlook, shareholding pattern, and other details.
With a market cap of Rs. 90,164.4 crores, shares of BSE Limited closed in the green at Rs. 2,216.9 on Wednesday. The stock hit its 52-week high at Rs. 3,030 on 10th June 2025, and compared to its closing price, the stock is trading at a discount of nearly 27 percent.
Key Highlights
As of June 2025, the market capitalisation of BSE-listed companies stood at $5.25 trillion, supported by over 219 million registered investors, 46 registered mutual funds, coverage across 721 cities, and a distribution network of nearly 81,000 mutual fund distributors. During the same period, the exchange processed 182.7 million mutual fund orders amounting to Rs. 2.43 trillion in value.
In Q1 FY26, BSE continued to serve as a prominent capital-raising platform, with 21 new equity listings (Mainboard and SME) raising Rs. 14,237 crore, while July 2025 alone saw 13 IPOs raising Rs. 24,559 crore, reflecting sustained investor participation. A key milestone was achieved in August 2025 with the listing of NSDL on BSE. Additionally, the allotment of BSE’s 2:1 bonus shares took place on May 26, 2025, with trading commencing from May 27, 2025.
Key Growth Drivers for Existing Business
In trading segments, the focus remains on increasing market share across all categories, benefiting from the steady rise in registered investors and turnover, along with higher household disposable incomes and a growing preference for financial savings. Continuous innovation and the launch of differentiated products further strengthen this segment.
In the mutual fund business, BSE leverages cost efficiency and convenience, backed by a strong intermediary network and nationwide connectivity. With rising household incomes and financial savings, the StAR MF Plus platform provides distributors and advisors with premium features, supporting both Demat and non-Demat transactions, and enabling seamless purchase, redemption, SIP, and switch facilities without the need for lengthy paperwork.
In platform services, BSE continues to expand its offerings beyond existing e-platforms such as IPO book-building, Offer to Buy, Offer for Sale, and the New Bond platform. Its leadership position in fundraising across equity, bonds, and commercial papers underscores its role as a key enabler for India Inc.’s capital-raising requirements.
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Regulatory Environment, Outlook and Risks
Management remains confident, highlighting BSE’s best-ever performance, a strong pipeline, and sustained business momentum. The strategic focus continues to be on customer-centricity, governance, simplicity, operational resilience, and prudent investments in technology and data centres.
While the outlook for the IPO market and overall capital market activity is positive, the company remains cautiously optimistic given prevailing macroeconomic and regulatory uncertainties.
Although there are no active regulatory consultations at present, management acknowledges the possibility of future regulatory changes, particularly in the derivatives segment. In addition, global macroeconomic and geopolitical developments could contribute to market volatility, affecting trading volumes and investor sentiment.
Competition also poses challenges, as BSE entered the derivatives segment relatively late and requires consistent effort to build longer-dated contracts and deepen market participation.
Financial & Shareholding Structure
In Q1 FY26, BSE reported a consolidated revenue from operations of Rs. 958 crores, a significant growth of around 13 percent QoQ and 59 percent YoY. Similarly, the company’s net profit for the quarter stood at Rs. 538 crores, representing an impressive rise of nearly 9 percent QoQ and 104 percent YoY.
The revenue mix was primarily driven by Transaction Charges of Rs. 737.5 crore, followed by Services To Corporates contributing Rs. 105.4 crore, Treasury Income on Clearing and Settlement (C&S) Funds at Rs. 45.4 crore, other Operating Income of Rs. 70 crore, and Investment Income of Rs. 79 crore.
In terms of financial ratios, BSE has reported a RoE of 36 percent and ROCE of 46.6 percent, while maintaining a debt-free balance sheet. Further, the stock is currently trading at a P/E of 56.4, compared to the industry average of 55.8.
As of March 2025, Foreign Institutional Investors (FIIs) hold a 16.78 percent stake. Retail Investors and Domestic Institutional Investors (DII) hold a 48.78 percent and 12.33 percent stake in BSE, respectively. Additionally, the “Others” category owns a 22.11 percent stake. The ace investor Mukul Mahavir Agrawal holds a 1.18 percent stake in the company.
Written by Shivani Singh
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