NSE Sees 15% Decline in Profit for FY26 Amid Moderating Market Activity

National Stock Exchange of India Ltd Reports Decline in Revenue and Profit

The National Stock Exchange of India Ltd reported a 3% year-on-year decline in revenue for the fiscal year 2026 (FY26), with revenue falling to ₹16,601 crore from ₹17,141 crore a year ago. The decline in revenue was mainly due to a decrease in the share of income from transaction charges, clearing and settlement income. Income from transaction charges fell 4% year-on-year to ₹13,057 crore from ₹13,636 crore the previous year, while clearing and settlement income fell 22% to ₹251 crore from ₹321 crore.

This decline in revenue comes against the backdrop of a volatile market and a cooling of derivatives trading. According to the NSE's own Market Pulse report from April 2026, market activity moderated in FY26, with equity cash ADT (average daily turnover) declining 7% year-on-year to ₹1.05 lakh crore and derivatives witnessing a similar slowdown - equity futures and options ADT falling 14% and 8% year-on-year, respectively.

The Securities and Exchange Board of India (Sebi) introduced new measures in July 2024 to curb excessive equity derivatives speculation. These regulations have since triggered a steady decline in futures and options (F&O) trading. This slowdown coincides with a prolonged market correction, as the benchmark Nifty 50 recorded a 1% loss in FY26, a sharp reversal from its 4% gain the previous year.

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NSE, which is on the path to an initial public offering, also saw its operating earnings before interest, taxes, depreciation and amortization (Ebitda) fall 12% year-on-year to ₹11,098 crore. Operating Ebitda margin fell to 67% from 74% previous year. The Ebitda squeeze was mainly due to a 25% surge in expenses, a large portion of which was attributable to the 44% increase in other expenses from ₹2,625 crore to ₹3,790 crore.

The company filed two settlement applications with Sebi, totaling ₹1,387 crore, to resolve enforcement orders related to the colocation and dark fibre cases. The company recognized a provision of ₹1,391.21 crore and the same is included in other expenses for the year ended 31 March 2026.

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While revenue and Ebitda fell, NSE's profit decline was further aggravated by the one-time impact of the new labour codes, for which it took a hit of around ₹126 crore in FY26. The exchange has also recommended a final dividend of ₹35 per share for FY26 – the same as last year.

In the March quarter, the exchange's trading revenue rose 27% to ₹4,968 crore from ₹3,295 crore the previous quarter. Operating Ebitda rose 27% to ₹3,633 crore from ₹2,851 crore, while operating Ebitda margin remained flat at 73% of revenue. Net profit jumped 19% sequentially to ₹2,409 crore.

NSE is currently in the process of drafting offer documents for its mega IPO, which could be worth up to ₹23,000 crore. The IPO is part of a wave of major public offerings expected in 2026, with high-profile listings anticipated from Reliance's Jio Platforms, SBI Funds Management, and Flipkart.