MOTILAL OSWAL ON BSE ; BUY | UPSIDE 24%

• Upgrades BSE to BUY, citing strong growth in derivatives trading and improving profitability. • F&O average daily turnover surged 85% in October MTD compared with August 2026. • FY27 F&O turnover expected at ₹216 lakh crore, UP 16% YoY. • Partial CAS reversal from December 7, 2026, expected to support trading volumes. • BSE commands over 30% market share in options premium turnover, with further expansion potential. • Premium-to-notional ratio improved to 14 bps from 6–7 bps in FY23–24, compared with NSE's 20 bps. • Cash market share increased to 9% from 7%; NSE listing could provide an additional growth catalyst. • FY27/FY28 revenue estimates raised by 8%/10%, while PAT estimates increased by 10%/12%. • EBITDA margins expected to reach 70%, compared with over 65% in FY26. • Expects 23% revenue CAGR and 27% PAT CAGR over FY26–28. • Sustained volume recovery and improving premium-to-notional ratio could drive an additional 20% upside to FY28 PAT estimates.

BSE LIMITED

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