NSE's profit rises 23% to Rs 2,578 crore in its first results as a listed company

The National Stock Exchange of India (NSE) reported a consolidated net profit of Rs 2,578 crore for the July-September quarter on Tuesday, up 23% from Rs 2,098 crore a year earlier. These were its first quarterly results since its shares listed in September.

Much of the year-on-year rise came from lower costs rather than higher revenue. Total expenditure fell 51% to Rs 1,161 crore from Rs 2,354 crore, mainly because a year ago NSE had set aside Rs 1,297 crore for settlement fees to the market regulator, SEBI, in the colocation and dark-fibre cases, Business Today reported. Total income rose 9% to Rs 4,554 crore.

Weaker than the June quarter

Compared with the previous quarter, results were weaker. Net profit fell 17% from Rs 3,120 crore in April-June, and revenue from operations fell 11% to Rs 4,067 crore from Rs 4,560 crore, according to Upstox. Operating profit (EBITDA) was Rs 3,079 crore, and the operating margin slipped to about 76% from 78% in the June quarter.

Transaction charges, NSE's main source of income, rose 9% from a year earlier to Rs 3,035 crore. Average daily turnover in the cash market rose 24% to Rs 1,18,377 crore, while the average daily premium traded in equity options, the most lucrative business, rose only 3% to Rs 47,977 crore. SEBI has tightened rules on index options trading since late 2024 to curb losses among small traders.

Smaller businesses grew faster. Listing revenue rose 70% to Rs 150 crore and income from data feeds and terminals rose 43% to Rs 165 crore. The exchange said it handled India's first tokenised bond issues, worth Rs 1,000 crore in total.

For the six months to September, net profit rose 13% to Rs 5,698 crore on total income of Rs 9,807 crore. NSE said it contributed Rs 41,234 crore to the exchequer in the half year, including Rs 34,788 crore in securities and commodities transaction taxes, Business Today reported.

Managing director and CEO Ashishkumar Chauhan called it a "momentous" quarter for the exchange.

Coal exchange stake

NSE's board approved selling up to 40% of its stake in National Coal Exchange of India Ltd, a wholly owned subsidiary, in one or more tranches, according to Upstox. No buyer or price was given.

Background: the listing

NSE's shares began trading on BSE on 24 September at Rs 1,800, a premium of less than 1% over the initial public offering price of Rs 1,785. The IPO raised Rs 22,561.57 crore. All of it was a sale of existing shareholders' shares, so none of the money went to NSE. The offer was subscribed 5.71 times, with strong demand from institutions and weaker interest from retail investors. The stock has stayed close to its offer price since. It closed at Rs 1,803.80 on Tuesday, before the results were announced after market hours.

What happens next

Wednesday is the first trading session after the results. Insiders are barred from trading NSE shares until 5 November, 48 hours after the results were declared.