BSE Limited (BSE) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the BSE Limited Q2 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Anand Sethuraman, Head of Investor Relations at BSE. Thank you, and over to you, sir.

Good evening, everyone, and thank you, Dominic. Thank you all for participating in the Q2 FY '26 earnings call for BSE. My name is Anand Sethuraman, and I'll be the host for the call. Today, we are joined by the BSE's leadership team consisting of Mr. Sundararaman Ramamurthy, Managing Director and CEO; Mr. Deepak Goel, Chief Financial Officer; Mr. Sunil Ramrakhiani, Chief Business Officer; Mr. Viral Davda, Chief Information Officer; Mr. Ramesh Gurram, CISO; Smt. Radha Kirthivasan, Head of Listing and SME. We are also joined by MD and CEO of our subsidiary companies; Smt. Vaisshali Babu, MD and CEO of ICCL; and Mr. Ashutosh Singh, MD and CEO of BSE Index Services. Also present here today are members of our business, finance and the Investor Relations team. The results for the quarter ended 30th September 2025 have been announced and the datapack consisting of financials and the investor presentation is available on the BSE website. We will begin today's call with remarks from the BSE's MD and CEO on the financial and business performance. [Operator Instructions] Some of the statements made today may be forward-looking in nature and are subject to risks and uncertainties. The company does not undertake to update these forward-looking statements publicly. With these remarks, I would now like to invite the BSE MD and CEO, Mr. Sundararaman Ramamurthy, to share his views. Thank you, and over to you, sir.

Thank you, Anand. Good evening, everybody, and a warm welcome to all our esteemed stakeholders for joining the call today to discuss Q2 FY 2026 earnings. India's economic progress continues to gain momentum with our Q2 FY '26 reflecting resilient growth despite global headwinds. The Finance Ministry's latest review highlights robust demand across both rural and urban sectors, even in the face of elevated U.S. tariffs.This resilience is underpinned by structural reforms such as GST rationalization and strong domestic fundamentals. Reserve Bank of India's decision to maintain the repo rate unchanged further reinforces macroeconomic stability, supporting consumption and investment while keeping inflation well anchored. Foreign institutional investors have been on a selling spree this year. While Q1 FY '26 saw a brief respite with FIIs turning net buyers, the trend reversed sharply in Q2 when they offloaded stocks worth INR 1.29 lakh crores. So far in this calendar year, FIIs have sold nearly INR 2.5 lakh crores compared to INR 3 lakh crores in the entire previous year. However, domestic institutional investors have consistently demonstrated confidence acting as a strong counterbalance by being net buyers every month in 2025 and infusing over INR 6.3 lakh crores into the market, thereby cushioning volatility and reinforcing stability. Amidst global uncertainties and FII selling pressure, one of the most encouraging trends has been the unwavering confidence of retail investors. Systematic Investment Plan, SIP inflows through the mutual funds touched a record INR 29,361 crores in September 2025 and declined by 19% to INR 24,691 crores in October 2025. The sustained participation underscores the strength of India's capital markets and the trust investors place in our economy. Despite the ongoing macroeconomic volatility, the dynamic geopolitical landscape, our unwavering commitment to fostering innovation, dynamism and resilience has significantly bolstered the competitiveness and value of our markets. During the first 6 months, we continued our efforts to review our listing policies to ensure they remain fit for purpose as our markets evolve, expand our product range and widen the scope of our offerings across the spectrum. With this backdrop, I'm happy to inform you that BSE has once again achieved a record quarterly revenue for the 10th consecutive quarter, posting its highest ever top line of INR 1,139 crores. This surpasses the previous record of INR 1,045 crores set last quarter, up 40% year-on-year, underscoring the strength of our strategy, our commitment to creating investment opportunities for stakeholders in India and globally and our focus on delivering differentiated services that drive sustainable growth. The strong revenue growth was driven by transaction-related income, mainly from derivatives, listing-related income, which was supported by record fundraising activity in Q2 and colocation services which continue to develop rapidly. Building on our strong foundation, BSE continued to capture momentum, resulting in record results for the quarter and for the first 6 months of FY 2025, '26. At the end of Q2, we maintained our position as one of the leading venues for equity listings with a solid pipeline spanning the technology and other exciting sectors, whilst average daily volumes across our cash market, derivatives market and mutual fund distribution platform remained very robust. Meanwhile, steps taken by our subsidiary companies further enhanced the vibrancy of our offerings. Let me now highlight a few of the many milestones in Q2 FY 2026. BSE's SME platform continues to grow steadily, reinforcing its role in empowering India's entrepreneurial landscape. After crossing the landmark of 600 SME listings in July 2025, the momentum has remained strong. As of October 2025, the platform hosts 657 listed companies, which have collectively raised over INR 13,083 crores since launch. Notably, October 2025 was a record month with 31 companies listed, raising a total of INR 1,242 crores. This growth depicts the increasing confidence of the investors on the SMEs raising capital on this platform. Beyond capital raising, the money raised through the capital market has got channelized into productive environment in the Indian economy with the highest standard of infrastructure development, global servicing and employment generation. SME entrepreneurs can use this facility to achieve next level of growth, helping achieve the dream of Viksit Bharat. BSE's Index business continues to grow at a rapid pace, fueled by strong client adoption and product innovation. As of September 2025, passive products tracking our indices have accumulated INR 2.54 lakh crores in asset under management. We are actively expanding our customer base by catering to insurance companies, market-linked debenture issuers and foreign clients, further strengthening our reach across domestic and global markets. The total number of investors -- investor accounts registered with BSE crossed INR 23 crores in Q2 FY 2026 with 10 states registering more than 1 crore investors with sign-off deepening retail participation across regions. The empowering investors through education and awareness is of paramount importance to BSE. In the Q2 FY '26, BSE IPF undertook around 4,096 investor awareness programs to promote financial literacy and bring about awareness in the securities market for the financial well-being and protect the interest of investors. BSE India has joined the hands with market regulator SEBI in its campaign against financial frauds to protect investors. Through #SEBIvsScam, we aim to empower every investor with the right knowledge and tools to make informed decisions, avoid digital traps and invest securely through our social media channels, BSE also continues to issue multiple investor advisories, emphasizing the importance of avoiding schemes that claim assured or guaranteed returns. I will now share some of the key financial numbers on a consolidated basis for the quarter ended September 30, 2025 as compared to the corresponding quarter previous year. BSE's operational revenues have grown by 44% to INR 1,068 crores from INR 740 crores. Transaction charges, which include equity cash, equity derivatives, mutual fund and clearing house income has increased by 57% to INR 794 crores from INR 507 crores. Treasury income from clearing and settlement funds has decreased by 32% to INR 42 crores from INR 63 crores. Other operating income, which includes enhanced data dissemination fees, colocation, index services, et cetera, has increased by 82% to INR 93 crores from INR 51 crores. Income from investments stands at INR 65 crores, similar to last year. Operating expenses increased by just 7% to INR 410 crores from INR 381 crores. It may be noted that 51% of the total operating expenses are attributable to regulatory fees and clearing and settlement expenses, all of which is directly correlated to increasing transaction volumes. The operating EBITDA, including contribution to core SGF has increased to INR 680 crores as compared to INR 388 crores with margins expanding to 64% from 52%. The net profit attributable to shareholders of the company stands at INR 558 crores, up from INR 346 crores, a growth of 61%. I would also like to highlight that the SGF contributions made this quarter is because of a BSE introduced policy to contribute 5% of transaction-related revenue to the core SGF on a monthly basis with the cap to ensure financial prudence while maintaining adequate risk coverage. As SGF contributions are a result of market activity, which may or may not align with the revenue, BSE has decided to make voluntary core SGF contributions in line with the revenue as long as overall SGF is not exceeding 150% of the minimum requirement. As of October 2025, BSE's core SGF stood at INR 1,159 crores. This includes ICCL number as well, you should add only BSE numbers with an additional INR 10.6 crores contributed during the quarter, which is due to the new policy. I would now like to share updates pertaining to business. For specific numbers pertaining to turnover, kindly refer to the BSE website and the investor presentation. As highlighted earlier, despite a challenging global economic and geopolitical environment, BSE has maintained its position as one of the world's leading capital raising platforms. With positive sentiment returning to the IPO market, we have strengthened the capital formation and showcased robust market fundamentals. This has laid a strong foundation for stability and growth while diversifying the investor base and enhancing overall market liquidity. BSE platforms continue to remain the preferred choice for Indian companies to raise capital by enabling issuers to raise INR 15.91 lakh crores in FY '26 by means of equity, debt, bonds, commercial papers, mutual funds, et cetera. In Q2 FY '26, BSE welcomed 97 new equity listings across both the main and SME boards, raising a total of INR 53,548 crores. The IPO market continued to remain exceptionally vibrant in October 2025, as well with 45 companies collectively raising INR 41,856 crores and it is expected to stay strong, driven by robust economic growth and sustained investor confidence. The notable growth in the IPO pipeline since the start of 2025 has demonstrated the continued vibrancy of India's IPO market reinforcing BSE as a listing venue of choice for issuers seeking to raise funds in both main board and SME markets. On the listing compliance front, we continue to focus on promoting high standards of governance and disclosure practices among listed issuers while ensuring the competitiveness and resilience of our listing framework. Moving on to our Trading segment, which continues to maintain strong momentum supported by healthy volumes and increased client participation across key business lines. Cash market trading volumes remained at long-term normalized levels of INR 7,968 crores in Q2 FY 2026 against INR 9,768 crores in the same period last year. We are pleased to share that the government contract note was successfully implemented in India effective 27th June 2025, addressing a long-standing request from BSE and marking a significant market reform. The initiative enables institutional investors to enjoy a seamless trading experience across venues. BSE has engaged stakeholders to adopt smart order routing for multi-venue trading, lowering costs and improving execution. Early signs are positive with SOR's share of BSE volumes rising above -- rising among both DIIs and FIIs. The BSE Index Derivatives segment sustained its growth trajectory in the quarter with average daily premium turnover of over INR 15,000 crores. In the coming year, we will continue to move ahead with our efforts to increase market participation, product development and adoption of longer-dated contracts as well as investments in data center and enhanced connectivity operations. In our last quarterly earnings call, I had highlighted colocation as a key strategic initiative for diversifying revenue streams. During the quarter under review, revenue from colocation rose to INR 46 crores compared to INR 27 crores in the previous quarter. This increase was primarily driven by the revision in throttled charges that is messages per second effectively -- effective from July 1. Moving on to our mutual fund distribution business. BSE StAR MF delivered yet another quarter of record revenues and performance, up 18% year-on-year to reach INR 69.7 crores. The total number of transactions processed by BSE StAR MF grew by 24% to reach INR 20.1 crore transactions in Q3 FY '26 from INR 16.2 crores in the previous year. The platform also processed a new high of INR 7.13 crore transactions in October 2025. BSE also remained committed to strengthening the SME and social stock exchange platform by fostering and enabling ecosystem for entrepreneurship and social impact fundraising. Moving on to our subsidiary business now. BSE Clearing House, India Clearing Corporation Limited, ICCL, delivered strong growth in first half of FY 2026 between April 2025 to September 2025 with monthly equity settled turnover tripling to INR 2.91 lakh crores and equity derivatives premium turnover nearly doubling to INR 4.31 lakh crores, while number of equity derivatives contracts settled surged sixfold to INR 126 crores. This was enabled by major tech upgrades, including reengineering of our real-time risk management system and scaling trades per second per member from 3,000 to 27,000. BSE Index Services, a wholly owned subsidiary of BSE offers a comprehensive portfolio of 180-plus indices spanning broad-based thematic factor and strategic equity categories, serving over 300 marquee clients, both domestically and globally. As of September 2025, passive products tracking our indices has surpassed INR 2.5 lakh crores in AUM with 72 passive schemes benchmarked to our indices. Since the acquisition of 50% stake from SPDJI, the company has launched 32 new indices in just 16 months significantly accelerating innovation. Additionally, the company has obtained RBI approval for 2 different indices, expanding our product suite beyond equities. The BSE Group directly or by our subsidiaries also has its presence in other related business, including India INX, Hindustan Power Exchange, HPX, BSE E-Agricultural Markets being spot platform for trading in commodities. BSE is committed to these new areas and is constantly working with partners for the growth of these businesses. Why the road ahead may not be without challenges. Our resilience and commitment to innovation give us confidence in capturing significant opportunities and driving the next chapter of growth. We are encouraged by the strong IPO pipeline, steady retail participation and growing adoption of our trading and clearing services. These trends position us well for the year ahead. Our strategy remains customer-centric, focused on expanding markets and products while maintaining the highest standards of governance, operational simplicity and resilience. Thank you for your continued trust and support. With these updates, I now hand over the call back to Anand.

Thank you so much, sir, for these updates. We can now open the floor for Q&A.

[Operator Instructions] Our first question comes from the line of Mohit Mangal from Centrum.

Congratulations on a good set of numbers. Just one question. I mean we have seen the market share increase in the Option Derivatives segment. What also we have seen is that the competition is reducing lot sizes and we've also introduced same day expiries in the GIFT City. So are we going to follow the suit?

Thank you, Mohit, for your kind words and congratulating us and for this question. BSE has always been following the principle of looking at the voice of customers and then going ahead and implementing changes. The questions which you have raised about whether we will be making any changes to the product suite as far as Indian Weekly Derivatives are concerned. We will be consulting the market and based on whatever the market feedback is and subject to the large size rules stipulated by SEBI, we will be doing from time to time whatever changes are required. As far as 0-DTE in GIFT City is concerned, for us, we are working towards creating deeper liquidity in the existing weekly Sensex futures contract at GIFT City. So at the right point of time, with the right support from market participants, we will consider bringing in more features and more products.

Our next question comes from the line of Amit Chandra from HDFC Securities.

Congratulations on a very strong set of numbers. So my first question is obviously on the market share gain that we have seen post the change in expiry. So like what is driving this? Because we have seen market share gains in almost all days from expiry to expiry minus 4. So any number that you can give us in terms of what is driving this and what exactly can be the number? And also we have seen the rise in the premium to notional was there until September. Post that, the rise in the notional has been higher. So that has impacted our margins as well. So your views on that. And where we are in the journey of increasing the institutional participation or changing the mix in terms of the index options where we wanted to see a rise in terms of the monthly volume.

Thank you so much, Amit ji, for this question. There are three questions packed into one question. So in case I missed answering any one of them, you may have to remind me. If I recap the question, the first part is on the market share increase. And related to that is the institutional participation in options. And the second question was with regard to the notional rise due to rising -- what is the notional rise vis-a-vis the premium that question was there. So let me answer all the three of them. As far as the market share part of it, as you would recall, BSE's stand has always been in a lighter wheel, we always say that our market share is 100% because our product is unique. Notwithstanding that we have never been tracking the market share part of it with regard to the derivatives. Our intention and our work continues to be in deepening and broadening of markets. We have been taking multiple steps in including more number of participants, more number of members and more FPIs. Our journey there continues. Whatever were the goals that we placed in front of us for the time lines, we are in line with our expectations and we are progressing. We are planning to add more institutional participants there. As you rightly pointed out in your third question, efforts are on for us to bring in more institutional participants who can help in building even more the growth trend that we are seeing with regard to the other than current week options, monthly options, et cetera, and also increase the liquidity in respect of index futures. At this point of time, it's an ongoing effort for us, and we are very confident while it is slow, it is steady, and therefore, it is moving in a positive mode. With regard to the margins of premium versus notional, as you would appreciate, the receipt of premium by us, the revenue for us comes from the premium, whereas the regulatory charges are based on contracts traded. The premium that is received is a function of multiple things, including volatility. The volatility behavior is based on both internal and external events. As you would appreciate, the internal events in the first quarter made the volatility to show higher tones while the events of the second quarter made the volatility subdued, making the premium realization per contract different from what it was for the first quarter and thus compressing the margins. And these events being uncontrollable and unpredictable, no future trend in this regard could be predicted by us.

Our next question comes from the line of Bhavya Sanghvi from Alchemy Capital.

Congratulations on a great performance. Sir, my question is on the change in voluntary contribution to the core SGF. So you said that 5% of the transaction revenue would be transferred to core SGF. One question was that what is the target? So it is 150% of minimum requirement was? Have I heard it right? Correct me if I am wrong.

Sanghvi ji, thank you so much for your congratulatory message. Yes, indeed, you heard it right. Leave alone the percentage, I just explain the principle so that the percentages will become more sensible. As you know, it is very difficult to predict the behavior of core SGF requirement as the parameters involved in the computation of SGF is more complex and it is not a simple direct relationship with any single factor. This in the past as we have seen, has been leading to a lot of sudden spurts in the requirement of core SGF and therefore, having sudden impact on the quarterly earnings. In order to smoothen it and as a matter of financial prudence, what we thought was some minimum amount on a quarterly basis out of our revenue should be contributed to the SGF. So that is where the 5% comes in and when we start contributing, if over a period of time, we have over contributed and the trend in SGF requirement has not kept in line with the simulated model what we have followed to predict a probable requirement, then we will be contributing SGF without any actual need. So to put that cap, the 150% requirement has been put in place. If more than 150% of the requirement we have -- if we have touch the 150% requirement, we wanted to halt this voluntary contribution till such time when the amount contributed by us is actually consumed by the requirement and further fresh requirement demanding. Basically, in simple English, it is to ensure that no single quarter suddenly has jerks in the earnings because of new emergence of additional requirement of core SGF to be contributed by BSE.

Understood, sir. Sir, just one follow-up on this. Since you have disclosed some data on clearing corporation of BSE. So just one kind of update where we have reached on the decoupling of the charges -- of clearing charges.

I'm not sure whether I'm understanding the question of decoupling of charges what you mean. If you mean that we should unbundled the charges -- unbundling of charges at this point of time, it's under the regulatory habit because the original charges that are being paid come under the regulatory habit of the agreement between clearing corporation under the oversight of the regulators. So unless and until that regulatory clarity emerges by way of the normally used co-creative consultative process, unilaterally, we will not be able to unbundle. So once that happens, unbundling will happen.

Our next question is from the line of Madhukar Ladha from Nuvama Wealth.

Congratulations on a great set of numbers. Just wanting to get a better understanding of the SGF contribution that we are going to do. So this 5% of transaction charges, this is going to be BSE's contribution right, sir? ICCL's contribution can be in addition to that. So in our consolidated numbers, the actual sort of contribution to SGF can be larger than 5% of transaction charges. Is my understanding correct on this? Second, you mentioned 150% of, again, sort of the minimum requirement right now. So I wanted to understand what is the current minimum requirement? And how far are we from that 150% also to get a sense of how much wherecould be -- I know that this is a moving goalpost. So maybe a disclosure every quarter on this would also be helpful.

Ladha ji, first of all, thanks for congratulating us, and thanks for your participation and question. Yes, you are right. What we are talking about 5% of transaction revenue is from the BSE side. Will ICCL be contributing on its own to the core SGF? Yes. ICCL revenue is not transaction revenue. So we should not take ICCL contribution, add it to BSE's contribution and put the denominator as transaction revenue and say the contribution is more than 5% of transaction revenue. ICCL from its revenue as would be required will be contributing for the core SGF. Your understanding that BSE on its own from its 5% of transaction revenue contributing the core SGF is an absolute correct number. 150% is not any regulatory stipulation. As I said, this is for us to halt and took how much more we should go ahead and when we should stop. If on a regular basis, every quarter, we start contributing. This is based on a simulated model that we thought this is what is required. And if the core SGF requirement is not growing in line with what we projected because the computation of core SGF and dependence of it is on multiple parameters, which are not unilaterally correlated. So the expectation and actual may be different. If it is different and if we are building excess at what point of time we should halt and not further contribute till the utilization actually happens. That is the 150% number.

Yes, sir, I understood that. But I wanted to just know that what is the gap that we need to bridge as of now? And I just have a follow-up question on this. Can you also...

Sorry. Sorry. Sorry. Ladha ji, let me answer the first question. Otherwise, I will forget. There is no gap to bridge. We are contributing on our own. There is no shortage now. We are contributing. We will continue to contribute till we reach 150%.

Yes. So I meant what is the gap to 150% as of now?

Madhukar, we don’'t disclose these numbers publicly. Like I said, it is an internal calculation, which we do on a monthly basis. So, if X is, say, the minimum corpus, we see up to 150% of that X, and accordingly we decide to contribute or not. These numbers are not publicly discussed on our website or on the website of our Clearing Corporation. So, this is purely from an internal perspective, which we will not be able to disclose it publicly.

Understood...

Madhukar, we can take any other question offline because I think there are several other questions for people in the queue now.

Just one thing, if I may squeeze in. If you can clarify on what is ICCL's policy also on SGF if there is a policy as such?

See, we will discuss ICCL policy separately in the call offline because this call being BSE since there are many other people waiting to ask for BSE-related questions, we should do it and you have asked already 4 questions. Since it was only one question quarter, we will take it offline and we will explain to you. Let us now give opportunity for the people who are waiting to ask on BSE performance and then we will come to you. Is that okay?

Our next question is from the line of Abhishek Kumar Leekha from Neste Wealth LLP.

And congratulations to the team for a great set of numbers. I would like to get an understanding on the BSE Ebix model, the kind of star platform that we have capitalized upon. The same we have not been able to capitalize upon the BSE Ebix Insurance Platform. I would like to have understanding on that. How we can capitalize or probably how we can take our stakes up, which can ensure that we have substantial skin in the game?

Leekha ji, thanks for participation and thanks for your congratulatory message. Yes, indeed, indeed you are right. The StAR MF platform has seen a better success compared to the EbiX. EbiX has not taken off and I think if we look at the entire country, the mutual fund performance levels are very different as compared to the insurance scheme’s performance levels. There are a host of factors. Some of them are controllable, some of them are not controllable, some of them are macro in nature. The point that you made that there has to be an effort or there has to be a rethinking in respect of what would be the role for us as effectively as it could be, should be made. And we will be making such thought process because it is the right time given the success of mutual fund, that’'s not what we see as replicated in respect of Ebix. Of course, the rules are different, the regulators are different, the needs are different. Nevertheless, we will be getting into a deep thought process to see what is that can come out of Ebix and what should be the future course of action for us.

Because what I feel is like there is a great set of opportunity. It only needs a rethink and reset. And so we look forward to your steps in the future.

Our next question is from the line of Devesh Agarwal from IIFL Capital.

Congratulations on great set of numbers. My first question is, sir, a clarification question. Could you again highlight that how much is the colocation revenue that we have booked in 2Q? And in which line item have you book this?

In the colocation numbers I have given earlier in my speech, it is slightly from INR 27 crores company that has gone up to INR 46 crores in this quarter. The main reason for going up is more racks and also the throttle charges, which we have implemented since July 1, 2025.

Right, sir. And sir, how many reps are now up and running? And what is the targeted numbers of colo that we will achieve by the end of this year?

All the racks that we have already generated, we have allocated. How much the members are using what percentage utilization, we wouldn't know. It will be a question of what we create and what is taken. We are expecting another 90 racks, 70 to 90 racks to come within the close of this financial year and which also will be allocated by us. Once it is done, we'll have around 500 racks, which is a mix of both 6 kVA and 15 kVA racks. Since 15 kVA racks are 2.5 times capacity of the 6 kVA racks. From 6 kVA equivalent, roughly you can say it will be equivalent to some 650 to 700 racks. But actual number of racks will be around 500.

Right, sir. And sir, one last one. Your share in the clearing and settlement has kind of increase. So, could you share what was the external revenue that we have booked from clearing and settlement? And is this SGF contribution that we have started from this quarter onwards is in view of this increasing share in the clearing and settlement?

So let me take you a bit back. If you recall, when I joined BSE, the clearing capacity for BSE's clearing Corporation was just 50 trades per second per broker. Technologically, the Clearing Corporation was found enough to take multiple members, particularly big members. We have been consistently working on it. At the start of this financial by April, it was around 3,000 trades per second per broker was the capacity that we had reached. From there, we went ahead with the system upgradation, we took it up to around 27,000 trades per second per broker, which if you benchmark is much ahead of what one of the largest trading members in this country could be generating as trades per second per one person. So clearly, this has led to some of the major brokers considering ICCL as the clearing corporation and that shift has taken us to the higher market share. The clearing charges income of ICCL is around INR 32 crores this quarter. And on an ongoing basis, we have to wait and watch because all these implementations and all these new members are happening one behind the other. The full impact of it will be realized in the coming quarters.

And the SGF part, sir, is it connected to this because with the higher clearing share, does the SGF requirement also goes up for us?

No. As I told you, SGF computation is a sort of a complex model. It does not based on just the volumes cleared and the volumes traded. It is a complex set of things based on stress requirements as stipulated by SEBI. So there is no specific increase in SGF because of which we have started contributing. I would like to reiterate as a sort of financial prudence in order to ensure that there is no sudden surprises at the end of any quarter. We are planning it properly so that on a regular basis, voluntarily, BSE computes some amount and puts it into SGF so that any sudden spike in SGF requirement arising out of multiple factors would not adversely and suddenly and surprisingly impact the profit numbers.

[Operator Instructions] Our next question comes from the line of Anthony Joseph an individual investor.

Sir, thanks for an excellent set of numbers again. My question is related to the capital expenditure that you have actually incurred in the last 6 months of about slightly over INR 300 crores. Would you be able to kind of give a breakdown of that?

Sir, I'm not sure how this INR 300 crores numbers you are referring to. Any suggestion where you're getting it from, sir?

Sir, it's from your cash flow statement looking to your cash flow statement, it's clear that there is about INR 305 crores. If I'm not wrong. I am not in front of my system right now but I have seen this number.

No problem. Let me look into it and reply. Just give me half a millisecond. I'm having the cash flow in front of me. I'm not able to see any specific INR 300 crore number, sir.

The first line on your investing activities.

Okay. Got it. So you're talking about capital work in progress that is the capital work in progress.

All put together, yes.

Yes. Yes.

The effective investments that you have made.

So see, what we mean by this capital work in progress is as you would recall, the growth in BSE in the last 30 years -- sorry, 3 years has been significantly large. To cope up with that, there was a significant amount of requirement -- significant requirement of investment in multiple areas, in physical infrastructure, in trading infrastructure and technology infrastructure. All the infrastructure put together is what we are showing here and that multiple facets of investments, including what we are spending on building, colocation, technology, servers, DR, et cetera.

But the INR 300 crore number is just from the last 6 months, right? So it is significant for a particular period.

You are absolutely right.

This is not kind of expenditure that we've ever seen. It's great you're doing excellent in terms of revenue, in terms of your profits. But considering this kind of number in terms of capital expenditures is significant for 6 month period would be great if you can give like a breakup of what this is. If it is investment into a property, that is great. I am not questioning why you are doing it. I just want to understand where this is going?

No, I totally appreciate your point. It's INR 313 crores is not a small number. It is a big number. It is a mix of multiple things, including the physical and technology infrastructure. What we can right now in front of me, I don't have the breakup. Offline, certainly, we can take your call. You know the numbers to call or the phone -- the mail to write. Please do write to us. We will give you all details because your point that INR 313 crores is not a small number, is fully taken, and we will be able to provide you a breakup of whatever we are doing.

Our next question comes from the line of Arpit Shah from Stanley Asset Managers.

I just wanted to understand the SGF contribution this quarter was about INR 11-odd crores. And how should we think about this 5% number when did we start because if I see your transaction revenue is about INR 794 crores as a percentage and 5% of that would be significantly higher number. How should we think about the 5% number? And how should we calculate that number?

I'm not sure whether you were there from the beginning of the call. If you are straight applying the 5% to the total revenue, this will not match with the INR 10 crore number because we started it from September only. That is why the number comes to 10%. The rationale of 5% and 150% since I have already explained, I am not reiterating. Your mathematics is correct. If you apply on the topline, say 5% it is not resulting in INR 10 crores. Right? We started it only from September.

Got it. So going ahead from every quarter till 150% is achieved?

Absolutely correct. Absolutely correct. Right understanding.

Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to Mr. Anand Sethuraman for closing comments. Over to you, sir.

Thank you so much. I can see there's still a significant number of questions. I would request all of them to kindly reach out to us at [email protected]. Thank you all for participating today. Thank you.

Thank you. On behalf of BSE Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.