BSE share price target rises up to Rs 4,570 after Q4 results. What Jefferies, Motilal Oswal & others are saying?

Shares of BSE slipped as much as 3.3% to their day’s low of Rs 3,832 on the NSE even as India’s oldest stock exchange reported a consolidated net profit of Rs 797 crore for the March quarter of FY26, registering a 61% YoY increase from Rs 494 crore in the corresponding period last year. Revenue for Q4FY26 rose 85% year-on-year to Rs 1,564 crore, compared to Rs 847 crore in the same quarter of the previous financial year. On a sequential basis, BSE’s net profit grew 32% from Rs 602 crore reported in Q3FY26, while revenue increased 26% from Rs 1,244 crore recorded in the October-December quarter.

For the full financial year FY26, BSE reported consolidated revenue of Rs 5,148 crore. EBITDA stood at Rs 3,393 crore, while EBITDA margin came in at 48%.

BSE share: Should you buy, sell or hold?

Nuvama Institutional Equities has maintained a ‘Buy’ rating on BSE with a target price of Rs 4,570, implying an upside potential of 15%. According to Nuvama, BSE is expected to see a relatively lower impact from the reduction in weekly contract volumes, as discontinued weekly contracts account for 21.3% of its index options premium volumes, compared with 46.9% for NSE.

The brokerage also believes BSE still has significant headroom to expand its derivatives active customer base, which currently stands at 15 lakh-20 lakh monthly users versus around 42 lakh for NSE. In addition, the brokerage expects higher contract sizes to help lower clearing charges, since these charges are linked to the number of contracts cleared.

Jefferies has maintained a ‘Hold’ rating on BSE with a target price of Rs 3,620, implying a downside potential of 9%. The brokerage said its cautious stance is driven by BSE’s heavy reliance on Ssensex weekly options, limited upside after recent market share gains, regulatory risks, and rising competition in co-location racks. Jefferies has cut its FY27 and FY28 EPS estimates by 4-5% after lowering average daily turnover assumptions amid declining volatility levels. The brokerage added that its target price is based on 34x June 2028 estimated EPS.

The Wall Street major also noted that BSE’s cash market share remained stagnant at 7% in Q4FY26, similar to FY25 levels, due to limited adoption of the common contract note framework. It further highlighted that growth in recurring revenues, including listing services, continues to remain weak.

Motilal Oswal Financial Services has maintained a ‘Neutral’ rating on BSE while raising its target price to Rs 4,400, implying an upside potential of 11%. The brokerage said BSE continues to deliver broad-based growth across key segments, supported by improving institutional participation, stable retail activity, and structural expansion in the STAR MF and index businesses.

Motilal Oswal added that the exchange’s continued investments in technology, data infrastructure, and product diversification are expected to strengthen its competitive positioning and improve long-term earnings visibility.

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