The National Stock Exchange has experienced a significant decline in its dominance of the equity options segment over the past three financial years. According to data from the exchange's annual reports and Red Herring Prospectus, NSE's market share in the equity options (premium value) segment stood at 96.9% in FY24. It subsequently declined to 87.4% in FY25 and further dropped to 74.71% in FY26, representing a 22.2% decline over the three-year period. This translates into rising competition in the derivatives market, though the exchange continues to maintain dominant positions in other key segments. The data shows a consistent downward trend in the exchange's market share, indicating intensifying competition in the equity options segment.
Despite the decline in equity options, NSE maintains strong positions across other trading segments. In the equity cash segment, the exchange's market share was 92.7% in FY24, 93.6% in FY25, and 92.99% in FY26. Similarly, in the equity futures segment, NSE's market share was 99.9% in FY24 and FY25, before marginally easing to 99.79% in FY26. The data indicates that while the exchange faces challenges in equity options, it continues to dominate other core trading segments. This diversified performance across different trading segments helps offset the decline in equity options dominance.
According to figures disclosed in the Red Herring Prospectus, NSE's operational performance showed signs of weakening ahead of its proposed initial public offering. The exchange's total revenue from operations declined to ₹16,601.30 crore in FY26 from ₹17,140.67 crore in FY25, representing a year-on-year decline of more than 3%. Its largest revenue source, transaction charges, also fell to ₹13,057.01 crore from ₹13,635.76 crore a year earlier, a decline of about 4%. Additionally, revenue from clearing and settlement services dropped 21.8% year-on-year to ₹251.45 crore in FY26, compared with ₹321.34 crore in FY25. The weakening operational performance comes as the exchange prepares for its IPO, highlighting the challenges facing the market leader in the derivatives segment.
