Why Did IPO-bound NSE Report a 37% Drop in Net Profit?
Synopsis
In a surprising turn of events, the IPO-bound NSE has reported a significant decline in its net profit. With a year-on-year drop of 37%, this financial update raises questions about the exchange's future. Discover the details and implications of this financial shift.
Key Takeaways
37% decline in NSE's net profit for Q3 FY26.
Total income fell 9% year-on-year.
Operating EBITDA decreased by 16% .
Rs 5.4 lakh crore raised on the NSE platform in Q3 FY26.
SEBI approved NSE's IPO after 10 years of delays.
New Delhi, Feb 6 (NationPress) The National Stock Exchange (NSE), which is preparing for an IPO, disclosed a significant 37% decline in its consolidated net profit, amounting to Rs 2,408 crore during the October-December timeframe (Q3 FY26), down from Rs 3,834 crore recorded in Q3 FY25.
On a sequential basis, the net profit showed a rise of nearly 15% compared to Rs 2,098 crore in the previous quarter of September, as per the financial disclosures made by the company.
The total income also experienced a 9% decrease year-over-year, dropping to Rs 4,395 crore from Rs 4,807 crore in Q3 FY25. However, total revenue witnessed a 6% increase quarter-over-quarter.
As per the financial reports, the operating EBITDA for the third quarter fell by 16% year-over-year, amounting to Rs 2,851 crore.
During Q3 FY26, a remarkable Rs 5.4 lakh crore was amassed through equity, debt, and business trusts on the NSE platform. A total of 65 companies collectively raised Rs 96,457 crore via Mainboard and SME IPOs in this quarter, nearly doubling the amount from the previous quarter and marking the peak in the past four quarters.
In the first nine months of FY26, seven municipal corporations raised close to Rs 750 crore, setting a record for the highest municipal bond issuances in any financial year since SEBI's Municipal Bond Regulations came into effect in 2015.
This report marks the first financial results from NSE after obtaining SEBI's no-objection certificate for its upcoming IPO.
NSE's Managing Director and CEO, Ashishkumar Chauhan, stated that it would take approximately three to four months to draft the Red Herring Prospectus (DRHP), a critical document necessary for initiating the IPO.
In a conversation with IANS at a recent event, Chauhan expressed gratitude to SEBI for facilitating the IPO process after a decade of delays, saying, “After 10 years, SEBI has agreed to start the IPO process. We thank SEBI for this.”
Alongside the DRHP preparation, NSE will concurrently work on the offer for sale (OFS) segment of the IPO. “The draft of the Red Herring Prospectus will take 3-4 months to complete,” Chauhan commented to IANS.
The exchange currently has approximately 1.91 lakh existing shareholders, and those eligible and interested in selling their shares through OFS will have the opportunity to engage in the process.
Point of View
The decline in NSE's net profit raises important questions about the health of the financial markets in India. The drop signals potential challenges ahead, especially with the impending IPO. Staying informed on these developments is crucial for investors and market participants alike.
NationPress
8 Jul 2026
Frequently Asked Questions
What contributed to the decline in NSE's net profit?
The decline in NSE's net profit was primarily due to a significant drop in total income and operating EBITDA, which fell 9% and 16% year-on-year, respectively.
What is the significance of the upcoming IPO for NSE?
The upcoming IPO is significant as it marks a critical step for NSE in enhancing its capital base and expanding its operations, following SEBI's approval.
How much was raised through IPOs in Q3 FY26?
In Q3 FY26, a total of Rs 96,457 crore was raised through Mainboard and SME IPOs, nearly doubling the previous quarter's amount.
What are the expectations for the Red Herring Prospectus?
The Red Herring Prospectus is expected to be drafted in approximately 3-4 months, detailing the specifics of the IPO and offer for sale.
How many shareholders does NSE currently have?
NSE currently has around 1.91 lakh existing shareholders who may participate in the offer for sale during the IPO process.
