Billionbrains Garage Ventures: Is Its Valuation Relative to Exchanges Not Enticing? Q2 FY27 Results, BSE and MCX Compared

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.

Click Here – Get Free Investment Predictions

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.

Compare broker and exchange stocks on the Univest Screener

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.

Download the Univest iOS App or Univest Android App to track broker and exchange stocks and get alerts.

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

1. Equity derivatives revenue in Q3 FY27 after the Closing Auction System
2. Any SEBI decision on the consultation paper that management expects to help derivatives
3. Growth in MTF, commodity derivatives and float income
4. Cost to serve and cost to operate against revenue
5. 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.

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.