NSE’s profit falls 15% in FY26 as market activity moderates
National Stock Exchange of India Ltd. reported a 3% annual decline in revenue and a 15% decline in profits for FY26. Revenue fell 3 percent ₹16,601 crore ₹Profit down 15% from 17,141 crore a year ago ₹10,302 crore.
Revenue decreased primarily due to a lower share of revenue from transaction costs, clearing and settlement revenue. Revenue from transaction costs fell 4% year-on-year ₹13,057 crore ₹13,636 crore last year, while clearing and settlement revenue fell 22% ₹251 crore ₹321 crore.
This comes against the backdrop of a volatile market and a cooling of derivatives trading. According to NSE’s own Market Pulse report dated April 2026, “Market activity has slowed in FY26, with equity cash ADT down 7% y-o-y.” ₹1.05 lakh crore and derivatives are witnessing a similar slowdown – equity futures and options ADT falling 14% and 8% respectively on a year-on-year basis.”ADT or average daily turnover is a measure of liquidity that measures the total value of derivative contracts traded on a platform, averaged over a particular period.
The Securities and Exchange Board of India (Sebi) introduced new measures in July 2024 to curb excessive equity derivative speculation. These regulations have triggered a steady decline in futures and options (F&O) trading since then. This slowdown coincides with a prolonged market correction. Nifty 50 registered a loss of 1% in FY26; This represents a sharp reversal from its 4% gain the previous year.
The exchange’s trading revenue also fell 3% amid the prolonged market correction. ₹15,044 crore as clearing revenue drops 30% ₹1,762 crore on an annual basis.
NSE’s operating earnings before interest, taxes, depreciation and amortization (EBIT), which is on its way to an initial public offering, was also seen falling by 12% on an annual basis. ₹11,098 crore. Operating EBITDA margin decreased from 74% to 67% in the previous year.
The EBITDA contraction was primarily driven by a 25% increase in expenses; Much of this was attributable to a 44% increase in other expenses. ₹2,625 crore ₹3,790 crore.
According to the company’s accounting notes, it has filed two settlement applications. Sebi, total ₹1,387 crore to resolve enforcement orders related to colocation and dark fiber cases. “Thereafter, on March 31, 2026, NSE submitted revised settlement terms for a cumulative amount. ₹1,491.21 crore with Sebi regarding the above matters,” the stock exchange said. The company stated that it is currently awaiting final disposition of the settlement applications by Sebi and the final outcome remains uncertain.
“NSE has adopted the following provision: ₹1,391.21 crore was included in other expenses for the year ended March 31, 2026, the exchange said.
While revenue and EBITDA fell, NSE’s profit decline was worsened by the one-off impact of new labor laws, which took a hit of around 100,000. ₹126 crore in FY26. The exchange also recommended a final dividend. ₹35 per share for FY26 – the same as last year.
Sequentially, the stock market has performed better than it has on an annual basis. Revenue increased 27% in March quarter ₹4,968 crore ₹3,295 crore in the previous quarter. Operating EBITDA increased by 27% ₹3,633 crore ₹2,851 crore, while operating EBITDA margin remained flat at 73% of revenue. Net profit increased by 19% sequentially ₹2,409 crore.
The exchange’s cash market trading segment recorded average daily trading volume (ADTV) in the March quarter. ₹1.20 trillion, up 21% quarter on quarter. The ADTV of the equity futures segment grew by 17% in the same period. ₹1.78 trillion. Meanwhile, ADTV for stock options increased by 43% for premium value. ₹76,375 crore.
NSE is currently in the process of preparing offer documents for the mega IPO. ₹23,000 crore. Mint reported on April 8 that the exchange plans to submit draft documents to Sebi by June or early July.
The IPO is part of a wave of major IPOs expected in 2026, with high-profile listings expected from Reliance’s Jio Platforms, SBI Fund Management and Flipkart. This follows a record-breaking 2025 for the primary market, in which 371 companies raised capital. ₹1.75 trillion, supported by major launches from HDB Financial Services, LG Electronics India and ICICI Prudential Asset Management.
NSE FY26 highlights (consolidated, year-on-year basis)
- Revenue fell 3 percent ₹16,601 crore ₹17,141 crore
- Operating EBITDA down 12% ₹11,098 crore ₹12,647 crore
- Operating EBITDA margin decreased from 74% to 67%
- Net profit fell by 15 percent ₹10,302 crore ₹12,188 crore
NSE Q4FY26 highlights (consolidated, quarter-on-quarter)
- Revenue increased by 27 percent ₹4,968 crore ₹3,925 crore
- Operating EBITDA increased by 27% ₹3,633 crore ₹2,851 crore
- Operating EBITDA margin remained stable at 73%
- Net profit increased by 19% ₹2,871 crore ₹2,409 crore
