The National Stock Exchange (NSE), India's leading stock exchange, reported mixed financial results for the first quarter, showcasing resilience in profitability despite a decline in revenue. The exchange also announced strategic changes and plans for new product launches to drive future growth.

Q1 Financial Performance

NSE's Q1 financial results paint a picture of contrasting trends:

The 11% year-over-year decline in operating revenue was primarily attributed to a 14% drop in transaction charges. Despite this, the exchange managed to report a 14% increase in profit after tax, reaching ₹29.30 billion. This growth in bottom line was supported by higher other income and the absence of contributions to the Settlement Guarantee Fund (SGF).

Operational Highlights

• Increased Expenditure: Total expenditure rose by 11% to ₹9.00 billion, with employee expenses surging by 34%.
• EBITDA Performance: EBITDA fell by 15% to ₹31.30 billion, with margins contracting from 81.90% in the previous year to 77.60%.

Strategic Changes and Future Outlook

NSE has announced several strategic initiatives aimed at boosting market share and driving future growth:

1. Nifty Expiry Shift: Starting September 2025, NSE will move the Nifty expiry from Thursday to Tuesday. Motilal Oswal estimates this could increase NSE's market share by 300-400 basis points on premium turnover.

2. New Product Launches: The exchange is focusing on several areas for future growth:

   • Scaling up electricity derivatives
   • Introducing commodity futures contracts
   • Potential launch of VIX futures
   • Developing products for international exchanges

3. Projected Growth: Motilal Oswal projects an 11% CAGR in transaction revenue over FY25-27. The brokerage also expects the following growth rates:

   • 6% CAGR in overall revenues
   • 7% CAGR in EBITDA
   • 11% CAGR in reported PAT

These strategic moves and product launches are expected to drive future volumes and strengthen NSE's position in the market. As India's financial markets continue to evolve, NSE's adaptability and focus on innovation will be crucial in maintaining its competitive edge and driving long-term growth.

The National Stock Exchange (NSE), India's leading stock exchange, has reported strong financial results for the first quarter of the fiscal year, showcasing resilience in a dynamic market environment.

Quarterly Performance Highlights

NSE posted a consolidated profit after tax of ₹2,924.00 crore for the June quarter, marking a significant 10% increase from ₹2,650.00 crore recorded in the January-March quarter. This robust growth in profitability underscores the exchange's operational efficiency and market leadership.

Complementing the profit growth, NSE's consolidated revenue from operations also saw a healthy uptick, rising by 7% to reach ₹4,032.00 crore compared to the previous quarter. This revenue boost can be attributed to increased transaction charges, driven by higher trading volumes in both cash market and derivatives segments.

Year-over-Year Comparison

When compared to the same quarter last year, NSE's financial performance presents a mixed picture:

• Consolidated profit after tax increased by an impressive 14%, reflecting the exchange's ability to enhance its bottom line despite challenging market conditions.
• However, revenue from operations experienced a decline of 11% year-over-year, indicating some headwinds in the overall market activity.

Cash Market Performance

The cash market segment of NSE demonstrated particular strength in the June quarter:

• The average daily traded volume in the cash market reached ₹1,08,542.00 crore.
• This represents a substantial 14% increase compared to the previous quarter.

The surge in cash market trading volumes indicates heightened investor participation and liquidity in the market, contributing significantly to NSE's revenue growth.

Operational Efficiency

NSE's ability to grow its profit at a faster rate than its revenue suggests improved operational efficiency and effective cost management. This performance is particularly noteworthy given the year-over-year decline in revenue, highlighting the exchange's adaptability to changing market dynamics.

As India's premier stock exchange, NSE's robust quarterly results reflect the overall health of the Indian capital markets and investor confidence. The exchange continues to play a crucial role in facilitating capital formation and providing a robust platform for investors and companies alike.