The surge in initial public offerings is set to become a significant revenue stream for the National Stock Exchange (NSE). According to reports from The Financial Express, revenue from listing fees jumped 58% in two years, rising from ₹223 crore in FY24 to ₹352 crore in FY26. While the percentage remains small at 2.1% of total revenue, experts anticipate this should improve significantly with ongoing IPO momentum. The boost comes as the country's largest bourse prepares for its own listing, with brokerages pointing to a strong pipeline of public issues in the coming months.
The listing fee growth provides crucial diversification for NSE as it faces challenges in its traditional business segments. As reported by The Financial Express, transaction charges accounted for 78.7% of NSE's revenue in FY26, down from 82% in FY24. Analysts attribute this decline to a shrinking derivatives pool due to fewer active individual futures and options traders, higher securities transaction tax (STT), and tighter position limits. With regulatory measures and higher transaction taxes weighing on derivatives activity, the exchange is gradually diversifying its revenue base through listing services. NSE earns revenue from listing services through listing, processing and book-building fees, with listing fees comprising one-time initial fees paid by companies and recurring annual charges linked to paid-up capital and market capitalisation.
Market experts remain optimistic about the IPO momentum continuing into FY27. According to Vaqarjaved Khan, senior fundamental analyst at Angel One, listing-based revenue looks well supported due to a strong IPO pipeline. Somil Mehta from Mirae Asset Sharekhan expects the IPO momentum to continue, supported by strong domestic liquidity and higher investor risk appetite following small-cap stock performance. Amar Ambani from Yes Securities noted that potential large issues such as Jio Platforms could lead to meaningful increases in NSE's listing-related revenue in FY27. However, experts caution that much of NSE's listing income comes from recurring annual fees and should be viewed as a stable revenue stream rather than a major growth engine.
Analysts expect transaction charges to account for around 75-76% of NSE's revenue by FY28, as reported by The Financial Express. The shift in revenue mix assumes significance as derivatives activity remains subdued amid regulatory focus and higher STT burden. However, experts caution that the diversification provides resilience against cyclical market conditions. As Amar Ambani from Yes Securities noted, the revenue mix will evolve cyclically rather than move permanently in one direction, with derivatives activity expected to pick up again over longer periods. The current busy primary market provides NSE with another revenue lever just as its traditional transaction-driven business faces a period of moderation.
