India’s Leading Exchange Reports a Transitional Quarter
The National Stock Exchange of India (NSE), the country’s largest real-time financial ecosystem, released its Q2 FY26 results showcasing resilience despite regulatory provisioning.
Consolidated net profit (PAT) came in at ₹ 2,098 crore, a 33 % YoY decline from ₹ 3,137 crore in Q2 FY25. Revenue from operations stood at ₹ 3,677 crore, down 18 % YoY, largely reflecting lower transaction volumes across cash and derivative segments.
However, after excluding the ₹ 1,297 crore SEBI settlement provision related to colocation and dark fibre matters, adjusted PAT surged to ₹ 3,396 crore, up 8 % YoY. The settlement outcome remains pending, and the company continues to maintain regulatory transparency on the matter.
Sequential Trends and Operating Performance
On a quarter-on-quarter basis, revenue slipped 9 % (₹ 4,032 crore → ₹ 3,677 crore), while reported PAT declined 28 % (₹ 2,924 crore → ₹ 2,098 crore).
Ex-provision, profit actually rose 16 % QoQ, reflecting NSE’s healthy operational base.
Total Income: ₹ 4,160 crore (vs ₹ 4,798 crore in Q1)
Operating EBITDA: ₹ 1,484 crore (vs ₹ 3,130 crore QoQ)
Ex-Provision EBITDA: ₹ 2,782 crore with a 76 % margin
EPS (reported): ₹ 8.48 vs ₹ 11.81 QoQ (post 4:1 bonus issue in Q3 FY25)
For H1 FY26, total income reached ₹ 8,959 crore (–10 % YoY) with a reported PAT of ₹ 5,022 crore and EPS ₹ 20.29.
Excluding the provision, H1 PAT improves to ₹ 6,320 crore (EPS ₹ 25.53).
Core Business Drivers
Transaction charges continued to dominate the topline at ₹ 2,785 crore (67 % of revenue).
Steady growth in data, index licensing, and terminal services contributed another 11 %, highlighting the exchange’s expanding recurring income base.
Despite softer volumes, NSE retained industry-leading market share:
- Cash Market 93.8 %
- Equity Futures 99.8 %
- Equity Options 78.6 %
- Currency Derivatives 100 %
Technology expenses rose 40 % YoY to ₹ 315 crore, underlining continuous digital infrastructure investment.
The AAA-rated NSE Clearing subsidiary continues to reinforce market stability.
Expanding Market Ecosystem
With 122 IPOs listed in H1 FY26 and ₹ 2 trillion equity capital raised, NSE remains the central pillar of India’s capital-formation journey.
Over 12 crore unique investors, 73 % of passive AUM linked to Nifty indices, and nationwide reach across 99.9 % PIN codes reaffirm its leadership.
Investor Outlook
While Q2 earnings were impacted by the one-time SEBI provision, NSE’s underlying financial health and market dominance remain unshaken.
Its diversified income streams, robust profitability excluding one-offs, and technology-driven scalability position the exchange strongly for sustainable growth in FY26 and beyond.