NSE Q2 FY27 profit drops 17% to ₹2,578 crore on revenue slide
Synopsis
NSE's Q2 FY27 profit fell 17.4% sequentially to ₹2,578 crore even as cash market volumes surged 24% year-on-year — a split that exposes growing pressure on per-unit revenue realisations. The quarter also saw India's first tokenised bond issuances worth ₹1,000 crore, facilitated by NSE, signalling a quiet but consequential shift in how Indian capital markets are evolving.
Key Takeaways
NSE reported consolidated net profit of ₹2,578 crore in Q2 FY27 , down 17.4 per cent sequentially from ₹3,120 crore in Q1 FY27.
Consolidated revenue fell 10.8 per cent sequentially to ₹4,067 crore ; EBITDA declined 13.3 per cent to ₹3,079 crore .
Cash market ADTV rose 24 per cent year-on-year to ₹1,18,377 crore , showing resilient underlying trading activity.
Listing services revenue surged 70 per cent and data feed revenue jumped 43 per cent year-on-year, highlighting non-trading growth.
NSE plans to divest a 40 per cent stake in its National Coal Exchange of India subsidiary to strategic investors.
NSE facilitated India's first tokenised bond issuances worth ₹1,000 crore during the quarter.
The National Stock Exchange of India (NSE) on Tuesday, 3 November 2026 reported a sharp sequential decline in earnings for the July–September quarter (Q2 FY27), with consolidated net profit falling 17.4 per cent to ₹2,578 crore from ₹3,120 crore in the preceding June quarter (Q1 FY27). The country's largest stock exchange also saw consolidated revenue contract 10.8 per cent to ₹4,067 crore from ₹4,560 crore in the prior quarter, according to its regulatory filing.
Earnings and Margin Pressure
Operating profitability mirrored the revenue weakness. Earnings before interest, tax, depreciation and amortisation (EBITDA) slipped 13.3 per cent sequentially to ₹3,079 crore from ₹3,551 crore in Q1 FY27. The EBITDA margin narrowed to 75.7 per cent from 77.9 per cent in the June quarter, reflecting a broader softening in core trading-related revenues.
Notably, the sequential decline comes after a buoyant Q1 FY27, suggesting normalisation from elevated activity levels rather than a structural deterioration. The exchange has not yet released year-on-year comparisons for net profit in its filing.
Trading Volumes Remain Resilient
Despite the profit slide, underlying trading activity painted a more encouraging picture. Average daily traded volume (ADTV) in the cash market surged 24 per cent year-on-year to ₹1,18,377 crore during the quarter. In the equity options segment, ADTV measured by premium value grew 3 per cent year-on-year to ₹47,977 crore, while the equity futures segment recorded an ADTV of ₹1,24,574 crore.
The divergence between robust volume growth and declining headline profit points to pressure on per-unit revenue realisations — a trend analysts have flagged amid increased competition and regulatory scrutiny of derivatives pricing.
Non-Trading Revenue Streams Show Growth
Several ancillary revenue lines posted strong year-on-year gains. Revenue from data feed and terminal services jumped 43 per cent to ₹165 crore, while listing services revenue surged 70 per cent to ₹150 crore compared with the year-ago period. Data connectivity charges contributed ₹267 crore, and operating investment income rose 9 per cent year-on-year to ₹237 crore from ₹217 crore.
The diversification into data and listing services is consistent with NSE's longer-term strategy to reduce dependence on transaction-fee income, which remains sensitive to market volatility cycles.
Strategic Moves: Coal Exchange Stake Sale and Tokenised Bonds
NSE announced plans to divest a 40 per cent stake in its National Coal Exchange of India subsidiary, with the intent to induct strategic investors while retaining majority ownership. The proposed platform aims to create an organised marketplace for coal trading in India.
Separately, during the quarter NSE facilitated India's first tokenised bond issuances worth ₹1,000 crore, marking a significant step in the development of domestic digital bond market infrastructure. The milestone positions NSE at the forefront of financial market modernisation ahead of anticipated regulatory frameworks for tokenised securities.
With non-trading revenues growing and digital market infrastructure expanding, the exchange's near-term performance will hinge on whether trading volumes — particularly in derivatives — sustain their year-on-year momentum into the second half of FY27.
Point of View
So the alarm bells should not ring too loudly — yet. The more telling signal is the widening gap between volume growth and revenue growth: cash market ADTV is up 24 per cent year-on-year but revenues are down quarter-on-quarter, which implies per-trade realisations are under structural pressure. NSE's pivot toward data, listing, and tokenisation revenues is the right strategic hedge, but these lines — collectively a few hundred crore — are nowhere near large enough to offset core transaction revenue swings. The tokenised bond milestone is genuinely significant for Indian capital market modernisation, but regulatory frameworks for such instruments remain nascent, capping near-term scale.
NationPress
3 Nov 2026
Frequently Asked Questions
What were NSE's Q2 FY27 financial results?
NSE reported a consolidated net profit of ₹2,578 crore in Q2 FY27 (July–September 2026), down 17.4 per cent from ₹3,120 crore in the preceding June quarter. Consolidated revenue fell 10.8 per cent sequentially to ₹4,067 crore, and EBITDA declined 13.3 per cent to ₹3,079 crore.
Why did NSE's profit fall in Q2 FY27?
The sequential decline in NSE's profit was driven by a 10.8 per cent drop in consolidated revenue to ₹4,067 crore, reflecting a normalisation from elevated Q1 FY27 activity levels. EBITDA margin also compressed to 75.7 per cent from 77.9 per cent in the prior quarter.
How did NSE's trading volumes perform in Q2 FY27?
Despite the profit decline, trading volumes remained strong. Cash market average daily traded volume (ADTV) rose 24 per cent year-on-year to ₹1,18,377 crore, while equity options ADTV (by premium value) grew 3 per cent year-on-year to ₹47,977 crore.
What is NSE's plan for the National Coal Exchange of India?
NSE announced plans to divest a 40 per cent stake in its National Coal Exchange of India subsidiary to strategic investors, while retaining majority ownership. The platform is intended to create an organised marketplace for coal trading in India.
What is significant about NSE's tokenised bond issuance?
During Q2 FY27, NSE facilitated India's first tokenised bond issuances worth ₹1,000 crore, representing a landmark step in the development of digital bond market infrastructure in the country. It signals NSE's move toward modernising capital market plumbing ahead of anticipated regulatory frameworks for tokenised securities.
