Jefferies has maintained its buy rating on BSE Ltd with a target price of ₹2,930 per share after the exchange reported a strong Q2FY26 performance, in line with estimates. Consolidated profit rose 61% year-on-year, supported by sustained momentum in the derivatives segment that offset weakness in cash trading volumes.
The brokerage noted that both index derivative volumes and related revenue growth remained robust during the quarter. BSE formalised its Settlement Guarantee Fund (SGF) build-up policy, setting the contribution rate at 5% of derivatives revenue — lower than Jefferies’ earlier assumption. The firm said this clarity provides long-term visibility on capital allocation.
Turnover data remained resilient despite the recent change in the derivatives expiry day. The first expiry session post the shift recorded the highest-ever daily turnover of around ₹50,000 crore, while Q2 average daily notional turnover rose 22% sequentially to ₹100 lakh crore.
Jefferies added that recent comments from the SEBI Chairman and the Finance Minister supporting market innovation and deeper derivative participation were viewed positively by investors. The brokerage expects derivative-led earnings growth to continue, aided by favourable regulatory tailwinds and a sustained rise in retail engagement.
Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
