NSE Profit Moderates as Trading Activity Slows, But Investor Base Jumps 40% Over Two Years

NSE Profit Moderates as Trading Activity Slows, But Investor Base Jumps 40% Over Two Years​

The National Stock Exchange (NSE) faced a challenge in FY26 as net profit declined by 15.5% year-on-year, primarily due to softer trading activity across both the cash and derivatives segments. Despite this margin contraction, NSE successfully expanded its market franchise significantly, with its registered investor base growing over 40% since FY24.

The exchange reported a Profit After Tax (PAT) of Rs 103.02 billion in FY26, which is down from the Rs 121.88 billion recorded in FY25. However, this figure remains 24% higher than the Rs 83.06 billion achieved in FY24. Overall revenue from operations saw a marginal slip of 3.1% year-on-year to reach Rs 166.01 billion from Rs 171.41 billion.

Transaction Revenue Moderates Amid Segment Weakness​

A key driver behind the earnings moderation was lower transaction charges, which constitute NSE's largest revenue stream and fell 4.2% year-on-year to Rs 130.57 billion. Although this charge segment experienced a decline, it still remained 7.7% higher compared to FY24 levels.

Trading activity softened across critical market segments during the fiscal year. The Average Daily Trading Volume (ADTV) in the cash market dropped by 6.6%, reaching Rs 1.06 trillion. Similarly, equity futures ADTV declined 14.2%, settling at Rs 1.59 trillion. Equity options turnover on a premium basis saw a decrease of 7.7%, while notional turnover fell by 17.4%.

Investor Base Expands and Strengthens Market Depth​

In a positive counterpoint to the trading moderation, NSE continued to deepen investor participation and expand its operational scale. The exchange's unique registered investor base rose 14.4% year-on-year, reaching 129.09 million in FY26 from 112.81 million in FY25.

Crucially, the expanded base figure represents a significant 40.7% increase over the 91.75 million investors registered back in FY24. The number of listed entities also climbed to 2,978 in FY26 from 2,719 in FY25 and 2,438 in FY24. Market capitalization of these listed companies stood at Rs 411.25 trillion, nearly matching the figure recorded a year ago at Rs 410.87 trillion.

IPOs and Listing Services Drive Revenue Growth​

NSE maintained its role as a leading platform for fundraising activities within the market. The exchange successfully hosted 108 mainboard Initial Public Offerings (IPOs) in FY26, marking a 36.7% increase from FY25 and standing 44% higher than FY24.

Total equity capital raised saw healthy growth, rising 6.2% year-on-year to Rs 4.78 trillion. This represents a near doubling compared to the Rs 2.43 trillion raised in FY24. Meanwhile, revenue derived from listing services increased by 12.3% year-on-year to reach Rs 3.52 billion, up 58.3% from FY24.

Operational Metrics and Investor Claims​

Operational efficiency saw mixed results for the exchange. Operating EBITDA fell 12.2% year-on-year to Rs 110.98 billion, causing the operating EBITDA margin to narrow to 66.85% from 73.78% in FY25. However, a normalised operational EBITDA of Rs 126.56 billion translates into a robust margin of 76.23%.

In terms of related business revenue, data centre rack charges surged by 32.9%, amounting to Rs 2.05 billion. Revenue from data feed and terminal services climbed 15.5% to Rs 4.70 billion. Licensing services also contributed strongly, rising 26% to Rs 1.52 billion. The number of investor claims, however, continued its downward trend across the years, falling to 3,392 in FY26 from 4,671 in FY25 and 6,851 in FY24.