India’s NSE reports higher sequential profit on recovery in derivatives trading

The National Stock Exchange of India reported a sequential rise in quarterly profit on Friday, helped by a recovery in derivatives trading volumes, as the country’s largest bourse moves closer to a long-awaited IPO.

Consolidated profit after tax rose 15% to 24.08 billion rupees ($265.5 million) for the quarter ended December 31.

Activity in India’s derivatives market had slumped after the markets regulator tightened futures and options trading rules in late 2024 to curb speculative activity, raising costs and denting participation, particularly among retail investors.

For the third quarter, however, NSE reported a sequential improvement in volumes across both the equity cash market and derivatives segments, although they remained lower than a year earlier.

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Average daily volumes in equity futures increased 8% quarter-on-quarter, while equity options volumes rose 15%.

Despite the recovery, volumes were still down 12% and 13%, respectively, from a year earlier. Average daily volumes in the cash market rose 3% from the second quarter.

NSE’s consolidated revenue from operations rose nearly 7% from the September quarter but declined about 10% from a year earlier. Profit for the third quarter was down 37% year-on-year.

In January, the stock exchange, which has been embroiled in litigation with the country’s market regulator since 2019, received approval to proceed with its IPO.