National Stock Exchange of India Limited (NSE) reported a 22.8% year-on-year (YoY) rise in consolidated net profit to ₹2,577.62 crore for Q2 FY27, compared with ₹2,098.47 crore in Q2 FY26. Revenue from operations increased 10.6% to ₹4,066.80 crore, supported by transaction charges, listing services and exchange-related businesses.
NSE's operating EBITDA rose approximately 107% YoY to ₹3,079 crore, with a margin of 75.7%. However, the sharp increase was largely influenced by a ₹1,297 crore SEBI settlement provision recorded in the previous year.
Sequential performance was weaker, with revenue declining 10.8% and net profit falling 17.4% quarter-on-quarter (QoQ). The NSE Q2 FY27 results highlight strong operating profitability but also reveal the exchange's dependence on derivatives trading activity and regulatory developments.
Table of Contents
- NSE Q2 FY27 Results: Key Highlights
- NSE Q2 FY27 Financial Performance
- Why Did NSE's EBITDA Rise 107%?
- NSE Revenue Breakdown
- NSE Trading Volumes and Market Share
- NSE Segment-Wise Performance
- NSE Standalone and H1 FY27 Results
- NSE Balance Sheet and Cash Flow
- NSE IPO and Listing Details
- Key Business and Regulatory Developments
- NSE Share Price and Valuation
- Key Risks and Challenges for NSE Investors
- What Should NSE Investors Track Next?
- Conclusion
NSE's September 2026 quarter reflected annual growth in operating revenue and profitability, although trading volumes weakened compared with the preceding quarter.
The following table summarises the key consolidated financial and operating indicators.
|
Financial metric
|
Q2 FY27
|
|
Revenue from operations
|
₹4,066.80 crore
|
|
Revenue growth YoY
|
10.6%
|
|
Total income
|
₹4,554.46 crore
|
|
Net profit (PAT)
|
₹2,577.62 crore
|
|
Net profit growth YoY
|
22.8%
|
|
Operating EBITDA
|
Approx. ₹3,079 crore
|
|
Operating EBITDA margin
|
75.7%
|
|
Transaction charges revenue
|
Approx. ₹3,035 crore
|
|
Cash-market ADTV
|
₹1,18,377 crore
|
|
Basic EPS
|
₹10.41
|
|
H1 FY27 consolidated PAT
|
₹5,697.70 crore
|
Figures are consolidated unless otherwise stated. Operating EBITDA is a management-reported measure, and its margin is calculated against revenue from operations.
Three important observations emerge from the NSE Q2 results:
-
Revenue growth remained positive: Operating revenue increased approximately 11% YoY, indicating continued growth in the exchange's revenue-generating activities.
-
Headline EBITDA growth was affected by the comparison base: The absence of the previous year's substantial regulatory provision contributed significantly to reported margin expansion.
-
Sequential trading activity weakened: Lower cash-market and derivatives turnover contributed to the decline in revenue and profitability compared with Q1 FY27.
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Want to evaluate NSE's stock performance after its Q2 FY27 results? Review the NSE share price, price charts and key financial valuation indicators.
NSE's Q2 FY27 financial results show a difference between annual growth and sequential performance. Revenue, profit and earnings per share increased compared with Q2 FY26 but declined from Q1 FY27.
The distinction matters because annual comparisons indicate how the business has developed over the past year, while quarterly comparisons reflect more recent changes in market activity.
NSE Q2 FY27 vs Q2 FY26: Year-on-Year Comparison
NSE reported higher consolidated revenue and net profit than in the corresponding quarter of FY26.
The following tables compare NSE's consolidated financial performance during Q2 FY27 and Q2 FY26.
NSE Q2 FY27 Financial Results
| Financial Metric |
Q2 FY27 and YoY Growth |
| Revenue from operations |
₹4,066.80 Cr (+10.6% YoY) |
| Consolidated net profit |
₹2,577.62 Cr (+22.8% YoY) |
| Basic EPS |
₹10.41 (+22.8% YoY) |
NSE Q2 FY26 Financial Results
| Financial Metric |
Q2 FY26 |
| Revenue from operations |
₹3,676.80 Cr |
| Consolidated net profit |
₹2,098.47 Cr |
| Basic EPS |
₹8.48 |
1. Revenue from operations increases 10.6%
NSE's consolidated revenue from operations increased by ₹390 crore YoY to ₹4,066.80 crore.
Transaction charges remained the primary revenue source, while listing services, data-related services and connectivity infrastructure provided additional contributions.
Consolidated total income reached ₹4,554.46 crore, including income outside revenue from operations.
The distinction between operating revenue and total income is important when assessing NSE's core business growth, as treasury and other income can fluctuate independently of trading activity.
2. Consolidated net profit rises 22.8%
NSE's consolidated net profit increased by ₹479.15 crore to ₹2,577.62 crore.
The reported growth reflects higher revenue and changes in the expense base. However, the previous year's profitability was influenced by regulatory settlement expenses and exceptional investment-related income.
Therefore, reported PAT growth should not be treated as an exact measure of recurring earnings growth.
Based on the reported figures, NSE's net profit represented approximately 63.4% of revenue from operations in Q2 FY27. This is a calculated ratio, not a conventional operating margin, because PAT also reflects other income, tax and non-operating items.
3. Basic EPS increases to ₹10.41
NSE reported basic earnings per share of ₹10.41, compared with ₹8.48 in Q2 FY26.
The increase broadly matched the growth in consolidated net profit, reflecting stronger reported earnings per share during the quarter.
However, quarterly EPS should not be confused with annual earnings when calculating valuation multiples.
NSE Q2 FY27 vs Q1 FY27: Quarter-on-Quarter Comparison
Despite annual growth, NSE's financial performance weakened sequentially.
The following tables compare NSE's consolidated financial performance during Q2 FY27 and Q1 FY27.
NSE Q2 FY27 Financial Results
| Financial Metric |
Q2 FY27 and QoQ Change |
| Revenue from operations |
₹4,066.80 Cr (-10.8% QoQ) |
| Consolidated net profit |
₹2,577.62 Cr (-17.4% QoQ) |
| Basic EPS |
₹10.41 (-17.4% QoQ) |
NSE Q1 FY27 Financial Results
| Financial Metric |
Q1 FY27 |
| Revenue from operations |
₹4,560.41 Cr |
| Consolidated net profit |
₹3,120.08 Cr |
| Basic EPS |
₹12.61 |
Revenue declined by approximately ₹493.61 crore, while net profit fell by ₹542.46 crore compared with the June 2026 quarter.
The decline coincided with lower average daily traded values across cash equities, equity futures and equity options.
Equity options premium turnover experienced the sharpest sequential contraction among these segments.
For investors, the QoQ decline highlights the sensitivity of NSE's financial performance to trading activity, particularly in derivatives.
NSE's operating EBITDA increased approximately 107% YoY to ₹3,079 crore in Q2 FY27. However, the unusually strong growth was largely influenced by the substantial SEBI settlement provision recognised in Q2 FY26.
Impact of the SEBI settlement provision
During Q2 FY26, NSE recognised a provision of approximately ₹1,297 crore relating to the co-location and dark-fibre settlement matters.
The provision increased expenses and reduced reported operating EBITDA in the previous-year quarter.
With no comparable charge in Q2 FY27, the reported annual improvement in operating profit appeared substantially higher than the underlying business growth.
|
EBITDA indicator
|
Reported figure
|
|
Q2 FY27 operating EBITDA
|
₹3,079 Cr
|
|
Reported EBITDA growth YoY
|
Approx. 107%
|
|
Q2 FY27 EBITDA margin
|
75.7%
|
|
Q2 FY26 settlement provision
|
₹1,297 Cr
|
|
Adjusted EBITDA growth YoY
|
Approx. 11%
|
Adjusted growth is an indicative calculation that adds back the identified prior-year provision. It is not a separately audited recurring-profit measure.
Reported EBITDA growth vs underlying profitability
Based on the approximately 107% reported growth, NSE's Q2 FY26 operating EBITDA was around ₹1,488 crore.
Adding back the ₹1,297 crore settlement provision produces an adjusted comparison base of approximately ₹2,785 crore.
Against this adjusted base, Q2 FY27 EBITDA growth works out to roughly 10.6%, close to 11%.
This indicates that NSE's underlying operating profitability grew considerably more slowly than the reported 107% increase suggests.
The previous-year quarter also included an exceptional gain of approximately ₹1,200.94 crore from the sale of an investment in an associate. That gain affected reported profit but was not recurring exchange operating revenue.
NSE's total expenditure declined approximately 51% YoY, from ₹2,354 crore to ₹1,161 crore. However, much of this reduction reflected the earlier regulatory provision rather than a comparable reduction in normal operating costs.
For investors, the important takeaway is that NSE maintained high operating margins, but the headline EBITDA expansion was substantially influenced by the prior-year expense base.
NSE earns revenue from transaction charges, listing services, market data, connectivity infrastructure, index-related services and other exchange activities.
Transaction charges remain the largest revenue contributor, making trading volumes and transaction pricing central to NSE's earnings performance.
NSE Q2 FY27 revenue by major category
The following figures show selected revenue streams disclosed for the September quarter.
| Revenue Category |
Q2 FY27 |
| Transaction charges |
₹3,035 Cr |
| Equity options charges |
₹2,216 Cr |
| Equity futures charges |
₹328 Cr |
| Listing services |
₹150 Cr |
| Data feeds and terminals |
₹165 Cr |
| Data connectivity |
₹267 Cr |
| Operating investment income |
₹237 Cr |
These are selected disclosures, not additive consolidated revenue categories. Equity options and futures charges are included within transaction charges.
Key Observations
-
Transaction charges remained NSE's largest revenue source, contributing approximately 74.6% of consolidated operating revenue.
-
Equity options charges accounted for the largest component of transaction revenue at ₹2,216 crore.
-
Equity futures charges contributed ₹328 crore, representing a smaller share of derivatives-related revenue.
-
Listing services revenue increased approximately 70% YoY to ₹150 crore.
-
Data feeds and terminals revenue grew approximately 43% YoY to ₹165 crore.
-
Data connectivity revenue reached ₹267 crore, reflecting NSE's infrastructure-related income.
-
Operating investment income increased approximately 9% YoY to ₹237 crore.
The below sections examine these major revenue streams in greater detail, explaining their contribution to NSE's overall revenue and business performance.
1. Transaction charges contribute nearly 75% of revenue
NSE generated approximately ₹3,035 crore from transaction charges, representing 74.6% of consolidated revenue from operations.
Transaction charge revenue increased approximately 9% YoY.
This revenue concentration demonstrates the importance of secondary-market trading to NSE's financial performance.
Although the exchange operates several other businesses, changes in trading volumes and fee structures can materially influence consolidated revenue.
2. Equity options remain the largest contributor
Equity options transaction charges amounted to approximately ₹2,216 crore.
This represented around 73% of transaction charge revenue and 54.5% of NSE's total operating revenue.
The concentration creates sensitivity to derivatives regulations, competition, trading volumes and investor participation.
Even if cash-market activity remains healthy, a sustained decline in equity options turnover could affect NSE's overall revenue growth.
3. Listing services revenue grows approximately 70%
Listing services revenue increased from around ₹88 crore in Q2 FY26 to ₹150 crore in Q2 FY27.
The increase reflects activity across the primary-market ecosystem, including securities listings and associated services.
Listing revenue offers diversification beyond secondary-market trading, although its contribution remains considerably smaller than transaction charges.
4. Data and connectivity businesses support diversification
Revenue from data feeds and terminal services reached approximately ₹165 crore, while data connectivity charges stood at ₹267 crore.
These services support brokers, institutional investors, market-data users and other participants requiring access to exchange information and infrastructure.
Their growth is important because NSE can generate revenue from the broader market ecosystem rather than relying exclusively on transaction fees.
However, data and connectivity revenue should not automatically be considered fully recurring or independent of trading activity.
Trading volumes help explain why NSE's financial results improved YoY but declined QoQ.
Cash-market activity grew strongly compared with Q2 FY26, while equity futures turnover declined and equity options premium turnover increased only modestly.
All three segments recorded lower average daily traded values than in Q1 FY27.
NSE average daily traded value in Q2 FY27
The following comparison uses average daily traded value (ADTV) to assess trading activity across major segments.
| Trading Segment |
Q2 FY27 ADTV and Growth |
| Cash market |
₹1,18,377 Cr (+23.7% YoY, -12.9% QoQ) |
| Equity futures |
₹1,24,574 Cr (-11.7% YoY, -18.6% QoQ) |
| Equity options (premium) |
₹47,977 Cr (+3.3% YoY, -25.5% QoQ) |
Equity options turnover is measured using premium value, not notional contract value.
Cash market: Strong annual growth
Cash-market ADTV increased from ₹95,705 crore in Q2 FY26 to ₹1,18,377 crore in Q2 FY27.
This represents growth of approximately 23.7%.
However, the figure declined from ₹1,35,949 crore in Q1 FY27, indicating weaker sequential trading activity.
The annual increase supports NSE's cash-equity transaction business, although actual revenue also depends on applicable charges and trading composition.
Equity futures: Turnover declines
Equity futures ADTV fell from ₹1,41,042 crore in Q2 FY26 to ₹1,24,574 crore in Q2 FY27.
This represented an 11.7% annual decline.
Sequentially, futures ADTV declined approximately 18.6% from ₹1,53,079 crore.
The decline shows that NSE's strong market position does not guarantee consistent growth in turnover.
Equity options: Sharp sequential slowdown
Equity options premium ADTV increased slightly from ₹46,442 crore in Q2 FY26 to ₹47,977 crore in Q2 FY27.
However, it fell approximately 25.5% from ₹64,352 crore in Q1 FY27.
This is particularly important because equity options generate more than half of NSE's consolidated operating revenue.
Investors should monitor whether the sequential decline reflects a temporary reduction in market activity or a more persistent change in trading behaviour.
NSE market share in Q2 FY27
NSE retained a dominant position in cash equities, equity futures and currency derivatives, while equity options remained more competitive.
|
Market segment
|
NSE market share
|
|
Cash market
|
Approx. 92%
|
|
Equity futures
|
Approx. 100%
|
|
Equity options
|
Approx. 68%
|
|
Currency derivatives
|
Approx. 100%
|
|
Mutual fund platform orders
|
Approx. 22%
|
Market shares are based on the respective measures disclosed by NSE. Equity options market share is based on premium turnover.
NSE's leadership in cash equities and futures reflects its established trading ecosystem and market infrastructure.
However, competition from BSE in equity options remains a significant factor.
For investors, market share and total market turnover must be considered together. A high market share does not necessarily translate into growing revenue when overall trading activity weakens.
NSE's consolidated operations include trading services, clearing services and other exchange-related businesses.
Segment revenue helps identify the scale of different activities, although the disclosed figures include transactions between group entities.
|
Business segment
|
Q2 FY27 revenue
|
|
Trading services
|
₹3,603.99 Cr
|
|
Clearing services
|
₹464.88 Cr
|
|
Other services
|
₹211.95 Cr
|
Segment revenues are before inter-segment eliminations and therefore do not directly add up to consolidated operating revenue.
Trading services
Trading services remain NSE's largest business segment.
The segment benefits from cash-equity trading, derivatives transactions, listing activity and exchange-related services.
Its performance is closely connected to market participation and transaction volumes.
Clearing services
Clearing services support settlement, collateral management and counterparty risk management.
These operations are essential to the exchange ecosystem, but their financial characteristics differ from ordinary transaction-fee businesses.
Investors should evaluate clearing revenue alongside settlement-related liabilities, guarantee resources and regulatory capital requirements.
Other services
Other services include activities connected with data, technology, indices and related market infrastructure.
Although smaller than trading services, these businesses provide opportunities to diversify NSE's revenue sources.
Their long-term significance will depend on sustainable revenue growth and profitability rather than expansion in operational activity alone.
Standalone financial results reflect the parent exchange company's performance, while consolidated results include subsidiaries and relevant group adjustments.
Both are useful, but consolidated results provide a broader assessment of NSE's financial performance.
NSE Q2 FY27 standalone financial results
NSE's standalone operations remained profitable during the September quarter.
| Financial Metric |
Q2 FY27 and YoY Growth |
| Revenue from operations |
₹3,567.04 Cr (Approx. +9% YoY) |
| Total income |
₹3,956 Cr (Approx. +8% YoY) |
| Operating EBITDA |
₹2,622 Cr |
| EBITDA margin |
Approx. 74% |
| Net profit |
₹2,163.58 Cr (Approx. +16% YoY) |
Rounded figures are identified where applicable.
Standalone revenue growth was lower than consolidated revenue growth, indicating differences between the parent company's performance and the broader group.
Consolidated net profit also exceeded standalone profit, reflecting contributions from subsidiaries and consolidation adjustments.
NSE H1 FY27 consolidated results
For the six months ended 30 September 2026, NSE reported higher revenue and profit than in H1 FY26.
| Financial Metric |
H1 FY27 and YoY Growth |
| Revenue from operations |
₹8,627.21 Cr (+11.9% YoY) |
| Total income |
₹9,807 Cr (Approx. +9% YoY) |
| Operating EBITDA |
₹6,674 Cr (Approx. +45% YoY) |
| EBITDA margin |
Approx. 77% |
| Consolidated PAT |
₹5,697.70 Cr (+13.5% YoY) |
| Basic EPS |
₹23.02 |
H1 FY27 consolidated revenue increased from ₹7,709.04 crore to ₹8,627.21 crore, while net profit rose from ₹5,022.32 crore to ₹5,697.70 crore.
The half-year figures indicate continued annual growth despite the sequential slowdown in Q2.
However, reported H1 EBITDA growth also reflects the settlement expense recognised in the corresponding previous-year period.
H1 FY27 standalone performance
NSE reported standalone revenue from operations of approximately ₹7,633.51 crore during H1 FY27.
Standalone operating EBITDA reached approximately ₹5,726 crore, while standalone net profit was ₹4,798.37 crore.
The figures indicate substantial earnings generation from the parent exchange business.
Nevertheless, consolidated cash flow and group-level obligations remain important when assessing overall financial strength.
NSE's balance sheet differs from that of a conventional manufacturing or services company.
The exchange group holds significant financial assets, bank balances and resources associated with clearing and settlement operations.
Consequently, reported cash and investments should not automatically be treated as unrestricted funds available to shareholders.
NSE consolidated balance sheet
The balance sheet shows a reduction in total assets, equity and cash equivalents between March and September 2026.
The following tables compare NSE's consolidated balance-sheet position as of September 2026 and March 2026.
NSE Balance Sheet as of September 2026
| Particulars |
September 2026 |
| Total assets |
₹75,877 Cr |
| Total equity |
₹29,166 Cr |
| Cash and cash equivalents |
₹20,708 Cr |
| Other bank balances |
₹18,429 Cr |
| Trade receivables |
₹1,725 Cr |
NSE Balance Sheet as of March 2026
| Particulars |
March 2026 |
| Total assets |
₹87,937 Cr |
| Total equity |
₹32,114 Cr |
| Cash and cash equivalents |
₹32,261 Cr |
| Other bank balances |
₹14,984 Cr |
| Trade receivables |
₹2,468 Cr |
Figures are approximate and consolidated.
Total assets declined approximately 13.7%, while total equity decreased around 9.2% over the six-month period.
Cash and cash equivalents fell by approximately ₹11,553 crore, although other bank balances increased.
These movements need to be assessed alongside dividend payments, investment transactions and settlement-related financial balances.
The decline in trade receivables may indicate improved collections or changes in outstanding balances, but it is not sufficient by itself to establish stronger operating cash generation.
Core Settlement Guarantee Fund
NSE's clearing infrastructure maintains resources to manage settlement risks and potential member defaults.
Such resources serve regulatory and market-stability purposes.
Investors should therefore distinguish between ordinary corporate treasury funds and financial assets maintained for clearing, settlement or other restricted purposes.
The total cash and investment balance does not necessarily represent surplus capital available for dividends.
NSE H1 FY27 cash flow analysis
NSE's H1 FY27 cash-flow statement presents an important contrast with its reported profitability.
Despite consolidated net profit of ₹5,697.70 crore, operating cash flow was negative.
|
Cash-flow metric
|
H1 FY27
|
|
Operating cash flow
|
-₹4,678 Cr
|
|
Investing cash flow
|
+₹1,818 Cr
|
|
Financing cash flow
|
-₹8,743 Cr
|
|
Capital expenditure cash outflow
|
₹492 Cr
|
|
Dividends paid
|
₹8,664 Cr
|
Figures are approximate.
Why was operating cash flow negative despite profit growth?
NSE's negative operating cash flow contrasts with its positive accounting profit.
However, exchange clearing and settlement operations can generate substantial movements in financial assets, liabilities and working capital.
These movements may affect consolidated operating cash flow without representing an equivalent deterioration in the underlying transaction-fee business.
The available summary does not establish how much of the operating cash outflow arose from each settlement-related or working-capital component.
A complete assessment therefore requires reconciliation of operating cash flow with profit, taxes, financial assets and liabilities.
Impact of dividend payments
NSE paid approximately ₹8,664 crore in dividends during H1 FY27.
This contributed substantially to the negative financing cash flow of approximately ₹8,743 crore.
Dividend payments are financing activities, not operating expenses.
They should therefore not be presented as the direct reason for negative operating cash flow.
For investors, the main issue is whether NSE can consistently convert its reported earnings into distributable cash after accounting for regulatory and settlement-related requirements.
NSE completed its initial public offering in September 2026 and listed its equity shares on BSE on 24 September 2026.
The listing marked an important change in NSE's corporate reporting and shareholder structure, making its financial performance more accessible to public-market investors.
NSE IPO details
The IPO was structured entirely as an offer for sale (OFS) by existing shareholders.
|
IPO particular
|
Details
|
|
IPO opening date
|
17 September 2026
|
|
IPO closing date
|
21 September 2026
|
|
Price band
|
₹1,700 to ₹1,785
|
|
Final issue price
|
₹1,785
|
|
Shares offered
|
12,64,36,650
|
|
Fresh issue
|
Nil
|
|
Listing date
|
24 September 2026
|
|
Listing exchange
|
BSE
|
|
BSE scrip code
|
544937
|
Because the IPO was an OFS, NSE did not receive fresh capital from the issue. The proceeds went to selling shareholders.
This distinction matters when analysing NSE's post-listing cash position, investment capacity and capital expenditure.
The listing also increased the relevance of quarterly disclosures, governance developments and market-based valuation for investors.
Apart from its quarterly financial performance, NSE reported developments across capital raising, mutual funds, commodities, technology infrastructure and regulatory matters.
These activities could support business diversification, although their contribution to consolidated earnings varies considerably.
1. Capital raising activity grows 41% in H1 FY27
NSE reported approximately ₹13.6 lakh crore of funds mobilised through its platform during H1 FY27, compared with ₹9.7 lakh crore in H1 FY26.
This represents growth of approximately 40.2%, or around 41% using the company's rounded figures.
NSE also reported approximately 81% market share in mainboard listings, 31% in SME issuances and 62% of funds raised through commercial paper, based on the respective measures in its investor presentation.
The growth indicates NSE's significant role in India's primary-market infrastructure.
However, the amount raised by issuers through NSE should not be confused with NSE's own revenue. The exchange earns listing and related service fees rather than the full value of securities issued.
2. Mutual fund platform orders increase 155%
NSE's mutual fund platform recorded approximately 155% YoY growth in orders during Q2 FY27.
As of September 2026, the platform had around 55 registered mutual fund houses and 27,305 schemes.
The increase reflects greater use of exchange infrastructure for mutual fund transactions.
For NSE, the financial opportunity lies in transaction services, platform participation and related infrastructure revenue.
However, order growth does not necessarily translate into proportionate revenue or profit growth. Investors should monitor the monetisation of this activity.
3. Commodity derivatives turnover expands
NSE reported commodity derivatives average daily turnover of approximately ₹337.5 crore during H1 FY27, compared with ₹79 crore in H1 FY26.
This represents growth of approximately 327%.
The exchange also highlighted activity in electricity futures and crude-oil options.
Commodity derivatives provide an opportunity to diversify trading revenue beyond equity products.
However, the segment remains considerably smaller than NSE's established equity trading businesses.
Its financial significance will depend on liquidity, market participation and sustained transaction revenue.
4. Tokenised bond issuances
NSE reported facilitating tokenised bond issuances aggregating approximately ₹1,000 crore during Q2 FY27.
Tokenisation involves representing financial instruments through digital records or tokens within an applicable legal and market-infrastructure framework.
The initiative indicates NSE's interest in emerging financial-market technologies.
However, the issuance amount does not represent NSE's revenue. The commercial significance will depend on adoption, regulatory developments and fee generation.
5. Corporate Bond Index Futures approval
On 1 October 2026, after the end of Q2 FY27, NSE announced that it had received a SEBI no-objection certificate for introducing Corporate Bond Index Futures.
The development could broaden NSE's fixed-income derivatives offerings.
However, regulatory clearance should not be interpreted as evidence of future trading volumes or profitability.
Investors should monitor the actual product launch, liquidity and revenue contribution.
6. Proposed divestment in National Coal Exchange
On 3 November 2026, NSE's board approved the proposed divestment of up to 40% of its holding in National Coal Exchange of India Limited, a wholly owned subsidiary.
The proposed transaction would involve a secondary sale of equity shares, potentially in multiple tranches.
The approval could facilitate strategic participation in the coal exchange business.
However, the transaction had not been completed at the time of the announcement.
The final consideration, valuation, buyer and financial impact remain dependent on subsequent developments.
Investors should avoid including any assumed divestment proceeds or gains in earnings estimates until the transaction terms are disclosed.
7. Co-location and dark-fibre regulatory matters
NSE's co-location and dark-fibre matters remain relevant to its regulatory and governance history.
The substantial settlement provision recognised in Q2 FY26 demonstrates how regulatory developments can materially influence reported profitability.
NSE also made disclosures during September 2026 concerning settlements relating to these matters.
For investors, the key considerations include the terms of regulatory settlements, compliance requirements, technology oversight and potential future financial obligations.
The absence of a similar expense in Q2 FY27 should not automatically be interpreted as the elimination of every possible regulatory exposure.
8. Technology infrastructure and operational resilience
NSE's technology infrastructure is central to its business model.
The exchange's investor presentation highlighted more than 14,000 servers, seven data centres and significant transaction-processing capabilities.
Reliable technology infrastructure supports high-volume trading, risk management, clearing and settlement activities.
However, technology investment also involves capital expenditure, maintenance costs, cybersecurity requirements and regulatory obligations.
Trading disruptions, system outages or settlement failures could affect NSE's operations and reputation.
For investors, technology reliability and infrastructure investment are therefore important indicators alongside financial growth.
NSE's contribution to government revenue
NSE reported approximately ₹41,234 crore of contributions to the exchequer during H1 FY27.
|
Component
|
H1 FY27
|
|
Securities and Commodities Transaction Tax
|
₹34,788 Cr
|
|
Income tax
|
₹2,885 Cr
|
|
Stamp duty
|
₹1,926 Cr
|
|
GST
|
₹1,171 Cr
|
|
SEBI fees
|
₹464 Cr
|
|
Total
|
₹41,234 Cr
|
The figure reflects the scale of market activity facilitated through NSE.
However, it includes taxes and statutory amounts collected or remitted through the market ecosystem.
It should not be interpreted as NSE's operating revenue, net profit or an amount entirely borne by the company.
NSE announced its Q2 FY27 results on 3 November 2026, after the regular trading session.
Therefore, 4 November 2026 was the first regular trading session in which investors could react to the results.
The final closing-price reaction should be assessed using BSE's official end-of-day data. An intraday movement does not establish the full post-results closing performance.
NSE trailing earnings calculation
NSE's valuation can be assessed using its trailing 12-month earnings, although sustainable profitability and regulatory exposure also need consideration.
The company reported consolidated net profit of approximately ₹10,302.06 crore in FY26.
Combining this figure with H1 FY27 and H1 FY26 earnings produces the following trailing profit estimate.
|
Calculation
|
Amount
|
|
FY26 consolidated PAT
|
₹10,302.06 Cr
|
|
Add: H1 FY27 PAT
|
₹5,697.70 Cr
|
|
Less: H1 FY26 PAT
|
₹5,022.32 Cr
|
|
Trailing 12-month PAT
|
₹10,977.44 Cr
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Based on approximately 247.5 crore equity shares, NSE's estimated trailing earnings per share (EPS) stood at ₹44.35. This is calculated by dividing the trailing 12-month consolidated profit of ₹10,977.44 crore by the number of outstanding equity shares.
The figure is an independently derived calculation, not company-issued earnings guidance.
Investors can compare the prevailing NSE share price with the derived trailing EPS to estimate the price-to-earnings (P/E) ratio.
However, valuation should not depend on the P/E multiple alone.
NSE's earnings are influenced by trading activity, transaction pricing, competition, treasury income, regulatory requirements and occasional exceptional items.
A more complete valuation assessment should consider normalised profitability, cash-flow quality, derivatives market share and the distinction between restricted and unrestricted financial resources.
NSE's dominant position in India's exchange infrastructure provides significant competitive advantages. However, its financial performance remains exposed to trading activity, regulation, technology requirements and competition.
The following risks could influence NSE's future earnings, competitive position and financial performance.
1. Dependence on equity options revenue
Equity options contributed approximately 54.5% of NSE's operating revenue during Q2 FY27.
This concentration makes the business sensitive to changes in options trading activity, transaction pricing and regulatory requirements.
Investors should track equity options premium ADTV and related transaction revenue.
2. Competition from BSE
NSE maintained approximately 68% market share in equity options based on premium turnover.
Competition from BSE could influence trading volumes, market share and transaction revenue.
The key indicator is whether NSE can maintain its share of derivatives activity without sacrificing profitability.
3. Regulatory and compliance requirements
As a market infrastructure institution, NSE operates under extensive SEBI oversight.
Changes in derivatives regulations, settlement requirements, transaction charges or compliance obligations could affect its business.
Investors should monitor official regulatory announcements and NSE's related disclosures.
4. Sequential volatility in earnings
NSE's Q2 FY27 revenue declined 10.8% QoQ, while consolidated net profit fell 17.4%.
The decline demonstrates that exchange earnings can fluctuate with trading activity.
Sustained weakness in derivatives turnover could place pressure on transaction revenue and profitability.
5. Cash-flow and balance-sheet complexity
NSE reported negative consolidated operating cash flow of approximately ₹4,678 crore during H1 FY27 despite positive net profit.
Clearing and settlement-related movements can influence cash-flow figures, making detailed reconciliation necessary.
Investors should monitor operating cash generation, restricted financial assets, dividend payments and settlement-related obligations.
6. Technology and operational risks
NSE depends on reliable trading, clearing and settlement systems.
Cybersecurity incidents, system failures or operational disruptions could create financial, regulatory and reputational consequences.
Technology spending and system reliability should therefore remain important monitoring indicators.
7. Valuation risk
NSE's market position does not automatically determine whether its shares are attractively valued.
A high valuation multiple may reflect expectations of sustained revenue growth, strong margins and market leadership.
If actual performance falls short of those expectations, valuation risk could increase.
Following NSE's Q2 FY27 results, investors should monitor trading volumes, market share, operating profitability and cash-flow trends to assess whether the exchange can sustain its earnings growth.
The following indicators will be particularly important in upcoming quarters.
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Key Indicator
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What Investors Should Monitor
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Equity options premium ADTV
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Trading activity in NSE's largest revenue-generating product
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Derivatives market share
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NSE's competitive position against BSE
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Cash-market turnover
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Changes in equity trading activity and transaction revenue
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Normalised EBITDA growth
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Underlying profitability excluding unusual expenses
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Listing and data revenue
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Growth in non-transaction revenue and business diversification
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Operating cash flow
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Cash conversion, working-capital changes and settlement-related movements
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Regulatory developments
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SEBI rules, settlement matters and compliance requirements
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Technology expenditure
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Infrastructure investment, cybersecurity and system reliability
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New product adoption
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Trading volumes and revenue from newly introduced products
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Coal exchange divestment
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Final transaction terms, valuation and realised proceeds
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NSE share valuation
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P/E ratio relative to sustainable earnings and growth expectations
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For investors, the key consideration is whether NSE can maintain its derivatives market share, improve cash-flow visibility and expand non-transaction revenue while sustaining normalised operating margins.
NSE's Q2 FY27 results showed 10.6% growth in consolidated revenue and 22.8% growth in net profit, supported by transaction income and the exchange's broader market infrastructure businesses.
Operating profitability remained strong, with an EBITDA margin of approximately 75.7%. However, the reported 107% EBITDA increase was substantially influenced by the previous year's SEBI settlement provision, making adjusted growth a more useful measure of recurring performance.
The sequential decline in revenue, profit and derivatives trading activity also highlights NSE's dependence on market participation.
For investors, the key factors to monitor are equity options turnover, competitive market share, normalised margins, cash-flow quality and the contribution of non-transaction businesses. These indicators will help determine whether NSE can sustain earnings growth while managing regulatory and infrastructure requirements.
Frequently Asked Questions
1. What was NSE's net profit in Q2 FY27?
NSE reported consolidated net profit of ₹2,577.62 crore in Q2 FY27, up 22.8% YoY from ₹2,098.47 crore in Q2 FY26. However, net profit declined 17.4% compared with Q1 FY27.
2. What was NSE's revenue in Q2 FY27?
NSE's consolidated revenue from operations increased 10.6% YoY to ₹4,066.80 crore. Total income, which includes other income, stood at ₹4,554.46 crore.
3. Why did NSE's EBITDA increase 107% in Q2 FY27?
NSE's reported operating EBITDA increased approximately 107% YoY to ₹3,079 crore, largely because Q2 FY26 included a substantial SEBI settlement provision. After adjusting for the prior-year provision, EBITDA growth was approximately 11%.
4. Why did NSE's profit decline quarter on quarter?
NSE's consolidated net profit declined approximately 17.4% QoQ, alongside lower trading activity across cash equities, equity futures and equity options. Equity options premium ADTV fell approximately 25.5% sequentially.
5. Is NSE listed on the stock market?
Yes. NSE listed its equity shares on BSE on 24 September 2026 under scrip code 544937. Its IPO was entirely an offer for sale, meaning NSE did not receive fresh capital from the issue.
Official Sources and References
The following official resources provide access to NSE's financial disclosures, investor presentations, regulatory announcements and listing information.
- NSE Investor Relations: Financial Results and Presentations
- NSE Corporate Announcements
- SEBI: NSE IPO Abridged Prospectus
- BSE: National Stock Exchange of India, Scrip 544937