NSE Q2FY27 Results: Consolidated Net Profit Rises 23% YoY to ₹2,578 Crore

NSE’s Annual Profit Growth Comes Alongside a Softer Quarter

Higher year-on-year earnings underline the exchange’s growth, while a sequential dip highlights its reliance on transaction activity.

A stronger year-on-year comparison, but a weaker quarter

The National Stock Exchange’s consolidated net profit rose to ₹2,578 crore in the July-September quarter, from ₹2,098.5 crore in the corresponding period a year earlier. Revenue from operations increased to ₹4,066.8 crore. The annual growth indicates that the exchange generated higher earnings and operating revenue than in the same quarter last year.

The sequential picture was less positive: net profit fell 17.38% and revenue from operations declined nearly 10.8%. The difference between the annual and quarterly comparisons matters because it shows that strong year-on-year growth does not remove the impact of changing activity levels from one quarter to the next. NSE’s first quarterly results after its listing therefore offer investors both a growth signal and a reminder to monitor the underlying revenue drivers.

Transaction charges remain central to revenue

Transaction charges—the exchange’s largest revenue source—fell to ₹3,035 crore from ₹3,623 crore in the previous quarter, a 16% decline. They were nevertheless higher than the ₹2,789 crore recorded a year earlier. This movement was the primary reason for the sequential decline in total revenue, making trading activity and the associated transaction income key figures to watch in future results.

Some other income lines improved. Listing-services income nearly doubled sequentially to ₹150 crore, while data-centre rack charges and data-connectivity income also surged. These gains offer some diversification, but the supplied results do not indicate that they offset the quarterly fall in transaction charges. Investors will need to see whether these newer or smaller contributors can build consistency over time.

Market changes and new products could broaden activity

Management expects changes to the closing auction session, scheduled to take effect from December 7, to support cash-market activity. It also said participants could gain more clarity around index-option expiry arrangements, with time to familiarise themselves with the system before further changes are considered. These are possible activity drivers, not a guarantee of higher revenue: the effect will depend on how market participants respond.

NSE is also looking to reforms in securities lending and borrowing being worked on by a SEBI working group as a potential support for the cash market. Its proposed corporate bond index has SEBI approval and is awaiting RBI approval; the exchange sees it as a potential fixed-income product, including for specialised investment funds. Separately, it plans changes to electronic gold receipts to encourage adoption. Each initiative may widen the exchange’s offering, but approval, implementation and actual uptake remain important steps.

Capacity spending and a subsidiary stake sale

NSE spent nearly ₹50 crore in the first half of the financial year on colocation expansion and additional racks. Management said a data-centre expansion in the next quarter could involve similar spending. The outlay may support capacity, but investors should also track how expansion translates into use and revenue rather than treating spending alone as a growth outcome.

The board approved the sale of up to 40% of NSE’s wholly owned subsidiary, the newly established National Coal Exchange of India, through one or more secondary-sale tranches. Separately, the exchange’s contribution to the exchequer in the first half was ₹41,234 crore, including transaction taxes, income tax, stamp duty, GST and SEBI fees.

Key Highlights

• Q2FY27 consolidated net profit rose 23% year on year to ₹2,578 crore.
• Revenue from operations increased 10.6% year on year to ₹4,066.8 crore.
• Sequentially, profit fell 17.38% and revenue declined nearly 10.8%.
• Transaction-charge income dropped 16% quarter on quarter to ₹3,035 crore.
• NSE approved divesting up to 40% of its coal-exchange subsidiary.

Investor Note: NSE’s annual growth is encouraging, but the quarter-on-quarter decline shows how closely revenue remains tied to transaction activity. Investors may weigh that dependence against potential contributions from market reforms and new products, while tracking execution, approvals and the returns from capacity spending.