Billionbrains Garage Ventures: Is Its Valuation Relative to Exchanges Not Enticing? Q2 FY27 Results, BSE and MCX Compared
- October 15, 2026
- Posted by: Harsh Piplani
- Category: News
Billionbrains Garage Ventures reported Q2 FY27 profit of Rs 725 crore, up 54% year on year, on revenue of Rs 1,501 crore, up 47%. One data site shows it at a P/E of 57.4 and a P/B of 12.4, against 51.1 and 23.6 for BSE and 69.0 and 29.4 for MCX. A Mint Premium column calls its valuation relative to exchanges not enticing. I could not read that column, so this article tests the claim with numbers.
Quick Answer
Billionbrains Garage Ventures, the parent of a leading stock broking app, reported Q2 FY27 profit of Rs 725 crore, up 54% year on year, and revenue from operations of Rs 1,501 crore, up 47%. On one data site it trades at a P/E of 57.4 and a P/B of 12.4, which is above BSE on P/E at 51.1 and below MCX at 69.0, while its P/B is about half of either exchange. Whether the valuation is enticing therefore depends on the metric, and growth in a business with a derivatives heavy income mix is the main thing that investors must weigh. I could not read the Mint Premium column behind the headline, so I test its claim here with the numbers I could verify.
Billionbrains is the listed parent of a discount broker with about 29% of active client accounts in India. The headline question is whether its stock looks expensive next to the exchanges, such as BSE and MCX, that earn from the same trading volumes.
This article lays out the Q2 FY27 results, the revenue mix, the valuation of Billionbrains against BSE and MCX, and the risks. Data sites differ on some figures, and I flag those differences.
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Billionbrains Q2 FY27 Results
| Metric | Q2 FY27 | Change |
|---|---|---|
| Revenue from operations | Rs 1,501 crore | Up 47% YoY from Rs 1,019 crore; roughly flat QoQ |
| Total income | Rs 1,541 crore | Up 44% YoY |
| EBITDA | About Rs 968 crore | Up 1% QoQ; margin reported as 64.5% or 65.7% by different sources |
| Net profit | Rs 725.6 crore | Up 54% YoY from Rs 471 crore; down about 1% QoQ |
| PAT margin | About 47% | Up about 3 points YoY |
| Total expenses | About Rs 556 crore | Up 28% to 29% YoY |
It grew profit faster than revenue, which lifted the margin, but profit slipped slightly from the June quarter. The company changed how it reports some revenue lines in Q2 FY27, so year on year comparisons of individual segments are not exact.
At the end of September 2026 the broker had about 1.34 crore active clients on NSE data, or 29.16% of the industry, the largest share among brokers. Zerodha held 14.73% and Angel One 14.65%. Transacting users were about 2.4 crore, up 27% YoY, and customer assets were Rs 3.9 lakh crore, up 46%.
Risk: A flat quarter on quarter shows that the 47% growth rate cannot be projected forward without a recovery in derivatives.
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Billionbrains Revenue Mix: Derivatives Still Lead
| Segment | Share of total income, Q2 FY26 | Share of total income, Q2 FY27 |
|---|---|---|
| Equity derivatives | 56.9% | 44.8% |
| Stocks | 17.8% | 17.4% |
| Margin trading facility (MTF) | 4.7% (7.4% in another report) | 10.1% |
| Commodity derivatives | 0.2% | 6.2% |
| Float income | 6.2% | 8.4% |
| Personal loans and loan against securities | 1.9% | 5.9% |
Equity derivatives revenue fell 14.3% from the June quarter, and the company blamed most of it on the Closing Auction System that SEBI introduced for the cash segment from 3 August 2026. Management said the pressure came from market structure and not from a loss of users, and it expects derivatives to recover once SEBI consultation paper proposals take effect. That recovery is the company’s expectation and not a certainty.
It still depends on derivatives for nearly 45% of income, the same business that supports BSE and MCX. The mix is shifting to MTF, commodity trading and float, which is a plus for diversification.
Risk: Any further SEBI rule change on derivatives would hit Billionbrains and the exchanges together.
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Billionbrains vs BSE and MCX: Valuation Compared
| Metric | Billionbrains | BSE | MCX |
|---|---|---|---|
| Share price | About Rs 192.5 (14 Oct) | About Rs 3,349 (15 Oct) | About Rs 3,187 (15 Oct) |
| Market cap | Rs 1,19,573 crore | Rs 1,36,152 crore | Rs 82,885 crore |
| P/E (data site) | 57.4 | 51.1 | 69.0 |
| P/B (data site) | 12.4 | 23.6 | 29.4 |
| 52-week range | Rs 112 to Rs 227.20 | Rs 2,326.10 to Rs 4,446.80 | Rs 1,762.10 to Rs 3,481.40 |
On P/E, Billionbrains is about 12% above BSE and about 17% below MCX (my calculation: 57.4 against 51.1 and 69.0). On P/B, it is about 48% below BSE and about 58% below MCX (my calculation). Mixed signals like these are why a single word such as not enticing is hard to prove.
The P/E of 57.4 is not consistent with the profit figures on the same page. Trailing profit of about Rs 2,694 crore gives about 44 times at a market cap of Rs 1,19,573 crore, and annualising the Q2 profit of Rs 725.6 crore gives about 41 times (my calculations). So the multiple of Billionbrains could be lower than the headline P/E, and I could not reconcile the difference.
Revenue gives another view. The market cap is about 20 times annualised Q2 revenue of Rs 6,004 crore (my calculation), and the PAT margin is about 47%. I could not find a comparable margin or return on equity for BSE or MCX on the same pages, so I do not claim a winner on quality.
Risk: P/B flatters a company with little equity, so check return on equity before reading a low P/B as value.
What Could Make Billionbrains Look Expensive
| Concern | Detail |
|---|---|
| Derivatives dependence | 44.8% of total income, and revenue fell 14.3% QoQ in the segment |
| Flat growth QoQ | Revenue flat and profit down about 1% from Q1 FY27 |
| Cost to serve | Rs 206 crore against Rs 124 crore a year earlier, from technology costs, one time reimbursements and compute inflation |
| Cost to operate | Rs 202 crore against Rs 148 crore, with about Rs 28 crore more CSR expected in H2 |
| Asset management arm | Net loss of Rs 8.3 crore, with assets under management of Rs 7,179 crore |
| Regulation | SEBI changes to derivatives and the Closing Auction System |
A premium multiple needs growth, and growth here depends on volumes in a market that regulators are reshaping. Against that, Billionbrains raised Rs 580 crore from State Street Global Advisors, repaid Rs 203 crore of debt and held cash of Rs 3,849 crore at the end of the quarter.
Risk: A stock at 57 times earnings can fall sharply if one quarter of volumes disappoints.
What to Watch Next for Billionbrains
- Equity derivatives revenue in Q3 FY27 after the Closing Auction System
- Any SEBI decision on the consultation paper that management expects to help derivatives
- Growth in MTF, commodity derivatives and float income
- Cost to serve and cost to operate against revenue
- BSE and MCX valuations, since both move with the same trading volumes
Conclusion
Billionbrains grows fast and earns a high margin, but its P/E sits between BSE and MCX and its income leans on derivatives. Whether that is enticing depends on your view of volumes and regulation, so compare the multiples with your own return target.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
What were the Q2 FY27 results of Billionbrains Garage Ventures?
Ans. Net profit was Rs 725.6 crore, up 54% from Rs 471 crore, and revenue from operations was Rs 1,501 crore, up 47% from Rs 1,019 crore. Profit was down about 1% from the June quarter.
What is the P/E of Billionbrains compared with BSE and MCX?
Ans. One data site shows 57.4 for Billionbrains, 51.1 for BSE and 69.0 for MCX. The P/E of Billionbrains looks lower if you use trailing profit or the annualised Q2 profit (my calculations).
What is the P/B of Billionbrains compared with the exchanges?
Ans. The same site shows about 12.4 for Billionbrains, 23.6 for BSE and 29.4 for MCX, so its P/B is about half of either exchange.
Why did derivatives revenue fall at Billionbrains?
Ans. Equity derivatives revenue fell 14.3% from the June quarter, and the company blamed the Closing Auction System that SEBI introduced from 3 August 2026.
How big is the client base of Billionbrains?
Ans. It had about 1.34 crore active clients on NSE data in September 2026, or 29.16% of the industry, and about 2.4 crore transacting users.
Is the valuation of Billionbrains not enticing?
Ans. It depends on the metric. It is dearer than BSE on P/E, lower than MCX on P/E and much lower than both on P/B, and I could not verify the Mint Premium column behind the headline.
What are the main risks for Billionbrains?
Ans. The main risks are the 44.8% of income from equity derivatives, SEBI rule changes, rising costs to serve and operate, and a flat quarter on quarter.
Is this article investment advice?
Ans. No. It is educational and not a recommendation to buy or sell.
