India's NSE posts 23% rise in quarterly profit in first results since listing

The National Stock Exchange of India posted a 23% jump in profit on Tuesday, helped by higher trading volumes, as the exchange operator reported its first quarterly results after its September stock market debut.

The country’s largest stock exchange operator has faced pressure on transaction revenue as tighter rules and higher taxes slowed options trading, while rival BSE gained share in index options.

NSE’s second-quarter consolidated profit rose to 25.78 billion rupees ($271.9 million) from 20.98 billion rupees a year earlier. Revenue from operations rose to 40.67 billion rupees from 36.77 billion rupees.

Average daily traded volume rose 24% for cash market trading and jumped 150% in the currency derivatives segment in the three months ended September 30.

NSE’s listing ended a decade-long wait and valued the exchange, which dominates India’s cash equities and derivatives markets, at nearly $47 billion.

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A year earlier, NSE had set aside 12.97 billion rupees to settle regulatory cases involving co-location and dark fibre, while booking a 12.01 billion rupee gain from selling stakes in associate companies.

Jefferies, however, said last month that the worst of regulatory pressure was likely over. It forecast 15% annual revenue growth from fiscals 2027 through 2029, driven by stabilising options market share, higher cash equity turnover and technology-related revenue.

The brokerage had estimated that average daily options turnover, which accounts for most trading in India, declined 20% month-on-month in August — the month when India introduced a closing auction session.

Average daily cash equities turnover on the National Stock Exchange had dropped 0.6%.

J.P. Morgan and Morgan Stanley initiated coverage with “overweight” ratings, citing NSE’s market dominance and growing retail investor participation in India.