The BSE share closed Wednesday’s trade 2.3% lower at Rs 3,534.60 and fell as much as 3.5% to Rs 3,490 intraday. This fall came in after key brokerages cut the price target of the stock. This is despite the exchange reporting a strong performance in Q1FY27. 

Nuvama on BSE

Nuvama Institutional Equities cut the price target to Rs 4,090 from Rs 4,570, implying an upside of 13% from the current market price. However, the brokerage house maintained its Buy rating on the stock. It said that the company’s performance came in “strong but momentum needs monitoring.”

“Industry volumes declined due to recent regulations, and hence we reduce our FY27 and FY28 adjusted net profit estimates by 16.6% and 14.4%,” said Nuvama. 

High volatility led to BSE delivering Q1 index options Average Daily Premium Turnover (ADPT) of Rs 29,600 crore, rising 2.4% QoQ, driving revenue up by 63.4% YoY. Higher sequential staff and tech expenses were offset by lower other expenses, driving operating leverage with a higher EBITDA margin of 24 bps QoQ at 66.8%. 

Motilal Oswal on BSE

Motilal Oswal Financial Services maintained its Neutral rating on BSE, with a price target of Rs 3,900, implying an upside of over 8%. 

The exchange’s higher investment income was offset by SGF costs and lower-than-expected EBITDA, which led to in-line net profit performance at Rs 870 crore, up 62% YoY.

The bourse has received approval for two additional indices, which will be launched after Focused IT contracts gain traction. The company aims to achieve double-digit market share in cash volumes by CY27 on the back of better adoption of common contract note and higher listings.

“We have cut our earnings estimates by 9% and 8% for FY27 and FY28, factoring in a higher opex trajectory and extrapolating the weak volume trajectory being witnessed in the past few months. However, we have not baked in any impact from the RBI regulations on proprietary trading,” said Motilal Oswal. 

BSE share price performance

The share price of BSE has changed a little over the past five trading sessions. The stock has dropped 7.7% in the last one month. However, it has given a return of 21% in the past six months. BSE’s share price has surged 48% in the last one year.

BSE Q1FY27

BSE reported a jump of 62% year-over-year in consolidated net profit to Rs 874 crore in Q1FY27, as against a consolidated net profit of Rs 539 crore in the corresponding period a year ago.

The company’s revenue from operations came in at Rs 1,566 crore, which is around 63% higher than its operational revenue of Rs 958 crore in the same quarter of the previous fiscal.