The National Stock Exchange of India (NSE) has reported a 23% year-on-year increase in consolidated net profit for the September quarter, supported by higher trading activity and lower expenses. The results mark the exchange’s first quarterly earnings announcement since its stock market listing in September 2026, putting its financial performance under closer investor scrutiny.
NSE’s consolidated profit after tax (PAT) rose to ₹2,578 crore in the second quarter of FY27, compared with ₹2,098 crore in the corresponding quarter last year. The exchange’s consolidated total income increased 9% to ₹4,554 crore from ₹4,160 crore a year earlier.
Revenue from operations stood at approximately ₹4,067 crore, registering growth of around 10.6% over the year-ago period. The performance was largely supported by transaction charges, which remain the exchange’s biggest revenue contributor. Income from transaction charges increased 9% to ₹3,035 crore in Q2 FY27, compared with ₹2,789 crore in the same quarter last year.
The growth reflects stronger activity in the cash market and equity options segment. Average daily traded volume (ADTV) in the cash market rose 24% year-on-year to ₹1,18,377 crore during the quarter. In equity options, average daily traded volume measured by premium value increased 3% to ₹47,977 crore.
However, the quarterly figures also reveal a softer performance compared with the June quarter. Consolidated profit declined around 17.4% sequentially, while revenue from operations fell nearly 10.8%. Transaction-charge revenue was down about 16% from the previous quarter, indicating that trading activity and earnings momentum moderated after a stronger first quarter.
The sequential decline is significant because it offers a more immediate picture of the changing trading environment. While the year-on-year comparison shows growth, the quarter-on-quarter figures point to the pressure that can emerge when market activity slows or trading patterns change.
NSE also recorded growth in several businesses beyond its core transaction income. Revenue from data feed and terminal services increased 43% year-on-year to ₹165 crore, compared with ₹115 crore in the corresponding quarter last year. Revenue from listing services rose 70% to ₹150 crore from ₹88 crore. Operating investment income increased 9% to ₹237 crore, against ₹217 crore a year earlier. Revenue from data connectivity charges stood at ₹267 crore.
One of the biggest factors behind the rise in reported profit was the sharp reduction in expenses. Consolidated total expenditure fell 51% year-on-year to ₹1,161 crore from ₹2,354 crore in Q2 FY26. The comparison was influenced by a one-time provision of ₹1,297 crore recognised in the year-ago quarter towards Securities and Exchange Board of India (SEBI) settlement fees relating to the colocation and dark fibre matters.
The lower expense base helped NSE’s consolidated operating performance improve substantially. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled, rising 107% year-on-year to ₹3,079 crore. The EBITDA margin stood at 76%, reflecting the exchange’s ability to generate strong operating earnings from its revenue.
On a standalone basis, NSE’s profit after tax increased 16% to ₹2,164 crore from ₹1,858 crore in the year-ago quarter. Standalone total income rose 8% to ₹3,956 crore, while revenue from operations grew 9% to ₹3,567 crore. The standalone EBITDA margin stood at 74%.
The exchange’s performance has also drawn attention from brokerages following its listing. Jefferies retained its ‘Buy’ rating on NSE shares and raised its target price to ₹2,125 from ₹2,085. The brokerage said the results were broadly in line with expectations, while noting that the exchange’s competitive strengths were not fully reflected in its valuation.
Other brokerages have also maintained a broadly positive outlook. Morgan Stanley retained its ‘Overweight’ rating and target price of ₹2,315, while JPMorgan maintained a ‘Buy’ rating with a target of ₹2,130. Macquarie retained its ‘Outperform’ rating and a target price of ₹1,975. These estimates reflect expectations that NSE could benefit from its dominant position in India’s capital markets and a gradual improvement in the operating environment.
NSE shares traded largely flat on November 4 after the results. The stock opened marginally lower at ₹1,795 and touched an intraday low of ₹1,786 before recovering. It was trading around ₹1,810, up 0.34%, at 3 pm, with nearly four million shares changing hands.
The results come at an important point for NSE as it enters a new phase as a listed company. Its market position, large trading volumes and growing retail participation remain key strengths. At the same time, changes in market regulations, transaction volumes and investor behaviour could influence future earnings.
A key area to watch is the impact of regulatory changes on derivatives trading. Reuters reported that the introduction of a closing auction session in August contributed to lower activity in some segments during the September quarter. Average daily equity-options volumes, measured by premiums paid, fell 25% sequentially, while cash-market trading volumes were higher year-on-year but declined from the previous quarter.
NSE is also looking to broaden its revenue base through technology, data services and new market products. Technology spending increased 23% year-on-year during the quarter, and the exchange expects technology costs to grow at a mid-teens rate.