NSE shares surged to a post-listing high of ₹1,953.95 on Friday, marking the fourth consecutive trading day of gains and taking the exchange's market capitalization past $50 billion at the day's high. The rally comes despite relatively weak sequential performance in Q2FY27, with the exchange reporting a 17.4% sequential decline in consolidated net profit to ₹2,578 crore compared with ₹3,120 crore in the June quarter. According to CNBC TV18, the stock was on track to extend its gains for a fourth consecutive trading day, with the market capitalization crossing the significant $50 billion milestone. The strong share performance contrasts with the exchange's operational challenges during the quarter, including declining transaction volumes and regulatory impacts.
The National Stock Exchange of India reported a 17.4% sequential decline in consolidated net profit to ₹2,578 crore in the September quarter, compared with ₹3,120 crore in the June quarter. However, according to latest reports, the exchange demonstrated strong year-on-year growth with net profit jumping 23% from ₹2,096 crore in Q2FY26. Revenue fell 10.8% to ₹4,067 crore from ₹4,560 crore in the previous quarter, but showed robust 11% year-on-year growth from ₹3,677 crore in the year-ago period. Sriram Krishnan, chief business development officer of NSE, explained during the earnings call that proprietary traders extended existing bank guarantees and tapped the corporate bond market to cope with the Reserve Bank of India's recent curbs on bank funding. The RBI circular on bank funding for prop traders was scheduled to go live on 1 April but was deferred by three months and took effect from 1 July. Krishnan noted that "there is no striking impact as such that can be attributed to this one particular change" as market participants adapted through extended bank guarantees and corporate bond issuances.
Despite the financial decline, trading activity in the cash market remained robust with average daily traded volumes rising 24% year-on-year. However, according to CNBC TV18 reports, the exchange experienced a 16% quarter-on-quarter decline in transaction volumes, with average daily traded volumes (ADTV) falling across segments. The equity options segment showed significant weakness with ADTV in premium declining 25% QoQ and yields moderating by 3 basis points. Income from heightened IPO activity provided some cushion against the weakness in transaction-related income. NSE's market share remained largely stable across segments, although its share in the cash market declined by 1 percentage point to 92%. The commodities segment showed resilience with futures ADT rising 38% QoQ to ₹138 crore and options premium turnover surging 116% QoQ to ₹297 crore, driven by strong traction in crude oil contracts. Recent developments suggest that closing auction volumes have been particularly hurt during the quarter, contributing to the overall decline in options trading activity.
According to latest reports, consolidated revenue from transaction charges increased 9% quarter-on-quarter to ₹3,035 crore from ₹2,789 crore in Q1FY27, driven by higher volumes in cash markets and equity options segments. According to NDTV Profit reports, NSE demonstrated growth across several non-trading revenue streams. Revenue from data connectivity charges stood at ₹267 crore, while revenue from operating investment income increased 9% year-on-year to ₹237 crore from ₹217 crore in Q2FY26. Data feed and terminal services revenue rose 43% to ₹165 crore from ₹115 crore, and listing services revenue increased 70% to ₹150 crore from ₹88 crore in the year-ago quarter. The exchange also facilitated India's first-ever tokenised bond issuances, aggregating ₹1,000 crore during Q2FY27. However, CNBC TV18 reports indicate that income from treasury investments fell 30% to ₹479 crore from ₹682 crore in the previous quarter, contributing to the overall revenue decline. NSE's options premium share has been maintained at 68 percent for the last two quarters, though recent developments suggest this segment continues to face challenges.
According to latest reports, EBITDA declined 13.3% QoQ to ₹3,079 crore from ₹3,551 crore, while EBITDA margin contracted to 75.7% from 77.9% in the preceding quarter. The results were marginally better than estimates, with EBITDA margin expanding to 75.7% from 40.4% on a year-on-year basis. EBITDA stood at ₹3,079 crore, compared with ₹1,484 crore in the year-ago period. The sequential weakness was largely driven by operating deleverage and the decline in treasury investment income. On a year-on-year basis, the exchange showed strong performance with net profit rising 22.9% and revenue increasing 10.6% to ₹4,066.8 crore from ₹3,676.8 crore. Total expenditure for Q2FY27 reduced 51% yearly to ₹1,161 crore as against ₹2,354 crore for Q2FY26, with the previous year including a provision of ₹1,297 crore towards SEBI settlement fees. NSE shares were up 8.55% from their listing price and higher by 9.46% from its issue price at today's high level.
According to latest reports, NSE's cash market trading segment recorded an average daily traded volume (ADTV) of ₹1,18,377 crore, up 24% YoY, while equity options ADTV increased 3% YoY to ₹47,977 crore and equity futures segment ADTV stood at ₹1,24,574 crore. For H1 FY27, consolidated total income increased 9% YoY to ₹9,807 crore as against ₹8,959 crore for H1FY26, with operating EBITDA gaining 45% to ₹6,674 crore at a 77% margin. Consolidated net profit for H1FY27 jumped 13% YoY to ₹5,698 crore with earnings per share at ₹23.02 on a non-annualised basis. Alongside the earnings announcement, NSE's board of directors approved the divestment of up to 40% stake in National Coal Exchange of India Limited through secondary sale of equity shares. On Tuesday, shares of NSE closed at ₹1,803.80 on BSE, gaining 1.35% after the market hours announcement. The exchange continues to face challenges in its options trading segment, with closing auction volumes particularly hurting the quarter and the stock back at its issue price amid ongoing regulatory uncertainties. Brokerages remain positive on NSE with multiple firms maintaining buy ratings and price targets ranging from ₹1,975 to ₹2,200 per share.
