Spec for the '91 M42 was 138hp, IIRC. It's the same motor in the coupe, sedan or 'vert. However, your car originally has a 4.27 diff to compensate (stock is a 4.10). Later E36 M42's had an improved intake manifold that improved the torque curve. The very similar 1.9 liter M44 motor had slightly more power as well, 141 HP IIRC.
One ticket for a powerful M42 is the M47 crank & M3 pistons.
Metric Mechanic sells drop-in motors from 2.0L on up, and they claim from 170hp to over 200hp. Those are not cheap motors though, starting cost is about $7.5K. A used Downing Atlanta supercharger can also be a good deal. There was one of those for sale here recently, and not for too much cash IIRC.
IMHO given the heavier weight of the 'vert you might be best off with a later six-cylinder motor all together. The alu-block M52 from the 530i is lighter than the M42 from what I've heard.
I'd stick with the four-banger myself just for the sheer reliability and economy of it. Small changes you can make to perk the motor up include a DME chip, lighter flywheel, hose delete mod, or COP mod.