NSE Q1 Results: IPO-bound firm posts 14% YoY rise in profit to ₹2,924 crore, even as revenue dips 11%
NSE's consolidated net profit in Q1 FY26 stood at ₹ 2924 crore, up 14% year-on-year, as against ₹ 2,567 crore posted in the same period last year. However, its revenue from operations saw an 11% YoY decline to ₹ 4,032 crore from ₹ 4,510 crore in the same period last year, reflecting the impact of softer trading activity and fee compression.
A key factor was the drop in F&O transaction charges, which fell to ₹ 1,729 crore from ₹ 2,744 crore a year ago—a 37% decline. Despite this, average daily turnover in the F&O segment rose 39% YoY to ₹ 360 lakh crore, underlining a paradox of high volumes but declining realisations, said Harshal Dasani, Business Head, INVasset PMS.
The operating EBITDA stood at ₹ 3,130 crore in the quarter ended June 2025, as against ₹ 3,106 crore in the same period a year ago. Meanwhile, EBITDA margins improved from 69% to 78%.
During the first quarter of FY26, NSE contributed a total of ₹ 14,331 crore to the exchequer. This included ₹ 12,338 crore in Securities Transaction Tax (STT) and Commodity Transaction Tax (CTT), ₹ 875 crore in stamp duty, ₹ 265 crore in SEBI fees, ₹ 338 crore in income tax, and ₹ 515 crore in Goods and Services Tax (GST).
Meanwhile, in the unlisted market NSE share price has declined 6% in the last one month. According to Unlisted Zone, which deals in the pre-IPO shares of companies, NSE share price has dropped to ₹ 2,175 from ₹ 2,325 in the last one month. However, for the past six months, the stock has been higher by 14%.
According to Dasani, NSE's profitability resilience despite revenue contraction signals strong operational leverage and cost control. However, the reliance on derivatives—and SEBI's scrutiny on F&O volumes—makes future earnings visibility sensitive to regulatory shifts, he said.
'As the IPO approaches, this result will likely be viewed favourably by long-term investors who value its scale, duopoly status, and high cash flows, but caution around the sustainability of F&O economics will remain,' Dasani added.
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