The National Stock Exchange of India delivered robust financial results for the quarter ended June 2026, with consolidated profit after tax rising 7% year-on-year to ₹3,120 crore compared to ₹2,924 crore in the corresponding quarter last year. According to the latest earnings report, this profit growth was driven by higher transaction charges across segments and demonstrated the exchange's resilience in delivering positive bottom-line performance. The IPO-bound exchange also achieved consolidated total income growth of 9% YoY to ₹5,252 crore, up from ₹4,798 crore in Q1 FY26, showing strong operational momentum as the exchange prepares for its proposed initial public offering. The results indicate that trading activity remained healthy during the quarter, helping the exchange generate higher fee income and supporting the exchange's continued dominance in India's capital markets.
The exchange's sequential performance showed mixed results compared to the previous quarter. Consolidated profit after tax increased 8.7% from ₹2,871 crore in Q4 FY26 to ₹3,120 crore in Q1 FY27, demonstrating strong quarter-on-quarter growth momentum. However, consolidated revenue from operations declined 8.2% sequentially to ₹4,560 crore from the previous quarter, indicating some moderation in operational income. Despite the sequential revenue decline, the exchange maintained its profitability trajectory, with transaction charge revenue increasing significantly to ₹3,623 crore from ₹3,154 crore a year ago, reflecting higher trading activity and market participation. Revenue from data connectivity charges stood at ₹258 crore, while operating investment income was ₹234 crore and revenue from data feed and terminal services came in at ₹150 crore. The exchange also reported profit of ₹20 crore on sale of investment in associates during the quarter, while the impact of discontinued operations was a loss of ₹2 crore.
Despite revenue challenges, NSE achieved significant improvement in its operating margins during the quarter. The exchange's operating EBITDA increased 14.8% YoY to ₹3,594 crore, compared with ₹3,130 crore in the year-ago period, with the operating EBITDA margin improving to 79% from 78% in the previous year, marking an 119 basis points year-on-year improvement. Total expenditure for the quarter stood at ₹1,129 crore, up from ₹1,053 crore in Q1 FY26, while total income came in at ₹5,252 crore compared with ₹4,798 crore in the corresponding period of the last fiscal, marking a 9% year-on-year increase. The margin expansion was a key factor in the exchange's ability to deliver positive bottom-line growth despite facing revenue headwinds, with higher trading volumes, particularly in derivatives and cash market segments, continuing to support the exchange's financial performance during the quarter.
During the quarter, NSE contributed ₹20,579 crore to the exchequer, including collections and payments, demonstrating its significant role in India's tax collection system. This contribution comprised Securities Transaction Tax/Commodities Transaction Tax (STT/CTT) of ₹18,313 crore, stamp duty of ₹980 crore, GST of ₹657 crore, income tax of ₹373 crore and SEBI fees of ₹256 crore. Of the total STT/CTT collections, the equity derivatives segment accounted for 57% of the total, followed by the cash market delivery-based segment at 37% and the cash market intraday segment at 6%, highlighting the dominance of derivatives trading on Indian exchanges. The figures underline the importance of derivatives trading in India's capital markets ecosystem, with NSE's strong market position continuing to support government revenue generation through transaction-related tax collections.
In a significant development for the exchange's IPO plans, NSE announced that SEBI has, in principle, agreed to settle the long-pending co-location and dark fibre cases involving the bourse for ₹1,491.21 crore, with the exchange required to pay the balance ₹714.74 crore after adjusting ₹776.47 crore already deposited towards the settlement amount. The Board of Directors approved payment of the remaining amount on July 30, 2026, marking a major milestone in resolving regulatory matters. The exchange had initially filed two settlement applications with SEBI on June 20, 2025 covering the co-location and dark fibre matters for a cumulative amount of ₹1,387.39 crore, which was subsequently revised to ₹1,491.21 crore on March 13, 2026. This settlement clears another significant regulatory hurdle before the exchange's proposed IPO, with the ₹30,000-crore IPO expected to be one of the largest ever in Indian capital markets.
