NSE Q2 net profit falls 17.4% sequentially to ₹2,576 crore as transaction income declines
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The National Stock Exchange of India (NSE) reported a 17.4% quarter-on-quarter decline in consolidated net profit to ₹2,575.9 crore in Q2 FY27, as lower transaction charge revenue and a fall in investment income weighed on its earnings.
Consolidated revenue from operations declined 10.8% to ₹4,066.8 crore in the September quarter from ₹4,560.4 crore in Q1 FY27. Operating EBITDA fell 13.3% to ₹3,079 crore from ₹3,550.9 crore, while the EBITDA margin contracted to 75.7% from 77.86%.
Transaction charges, NSE's largest revenue contributor, declined 16% sequentially to ₹3,035 crore from ₹3,623 crore. The decline was led by revenue from Nifty weekly index options, which fell 22% to ₹1,699 crore from ₹2,170 crore in the preceding quarter.
Revenue from other index options and NSE International Exchange (NSEIX) also declined 22% to ₹185 crore, while revenue from futures and NSEIX fell 11% to ₹328 crore. Cash market transaction revenue declined 6% to ₹474 crore.
Investment income falls 30%
Income on investments declined 30% sequentially to ₹479 crore from ₹682 crore in Q1 FY27. Consequently, total other income fell 30% to ₹488 crore from ₹692 crore.
Consolidated total income, which includes revenue from operations and other income, declined 13% to ₹4,554 crore from ₹5,252 crore in the preceding quarter.
Total expenditure remained broadly stable at ₹1,161 crore, compared with ₹1,172 crore in Q1 FY27. The decline in revenue, particularly transaction charges and investment income, therefore weighed on operating profitability.
Despite the sequential decline, NSE's consolidated net profit increased 23% year-on-year from ₹2,098 crore in Q2 FY26. Total income grew 9% year-on-year, while operating EBITDA more than doubled from ₹1,484 crore.
H1 profit rises 13% year-on-year
For the first half of FY27, consolidated net profit increased 13% year-on-year to ₹5,698 crore, while total income rose 9% to ₹9,807 crore. Operating EBITDA grew 45% to ₹6,674 crore, with a margin of 77%.
NSE's contribution to the exchequer during April-September stood at ₹41,234 crore, comprising securities and commodities transaction tax (STT/CTT) of ₹34,788 crore, income tax of ₹2,885 crore, stamp duty of ₹1,926 crore, GST of ₹1,171 crore and SEBI fees of ₹464 crore.
Commenting on the quarter, NSE Managing Director and CEO Ashishkumar Chauhan said, “Q2FY27 was a momentous quarter for us as we successfully completed the listing of one of the world's largest and most technologically advanced market infrastructure institutions.”
During the quarter, NSE also facilitated India's first-ever tokenised bond issuances aggregating ₹1,000 crore.