National Stock Exchange of India Limited | Q2 FY27 Earnings Analysis | November 10, 2026
NSE delivered a strong financial performance in Q2 FY27, supported by higher cash-market activity, growth in transaction charges, robust listing revenues and rapidly expanding commodity derivatives. Consolidated total income increased 9% year-on-year to ₹4,554 crore, while profit after tax rose 23% to ₹2,578 crore.
| Key financial and operating metric | Q2 FY27 / September 2026 | Performance |
|---|---|---|
| Consolidated total income | ₹4,554 crore | +9% YoY |
| Revenue from operations | ₹4,067 crore | +11% YoY |
| Profit before tax | ₹3,425 crore | +13% YoY |
| Profit after tax | ₹2,578 crore | +23% YoY |
| EPS | ₹10.41 | Non-annualised |
| Transaction charges | ₹3,035 crore | +9% YoY |
| Equity options revenue | ₹2,216 crore | +6% YoY |
| Cash-market transaction revenue | ₹474 crore | +30% YoY |
| Listing-services revenue | ₹150 crore | +70% YoY |
| Data-related revenue | ₹531 crore | +8% YoY |
| H1 FY27 PAT | ₹5,698 crore | +13% YoY |
| H1 operating EBITDA margin | 77% | — |
| Equity cash-market share | Approximately 92% | — |
| Equity futures market share | 99.8% | — |
| Equity options market share | 68% reported | Approximately 70% after holiday adjustment |
Key highlights: NSE’s commodity options premium turnover increased substantially, co-location infrastructure expanded to 1,868 racks, and its Market LENS platform is creating opportunities for future data monetisation. However, weekly index options remain a significant contributor to revenue, making regulatory developments and derivatives-market activity important variables for investors.
National Stock Exchange of India Limited reported consolidated total income of ₹4,554 crore in Q2 FY27, compared with ₹4,160 crore in the corresponding quarter last year, representing growth of 9%.
Revenue from operations increased 11% year-on-year to ₹4,067 crore and accounted for approximately 89% of total income.
Profit before tax from continuing operations increased 13% to ₹3,425 crore. Profit after tax advanced 23% to ₹2,578 crore, while non-annualised earnings per share stood at ₹10.41.
An important qualification is required when interpreting the profit growth. The corresponding quarter of the previous year included a one-time SEBI settlement provision of ₹1,297 crore. Management indicated that, after normalising for one-offs, PBT growth was approximately 9%.
| Particulars | Q2 FY27 | YoY growth |
|---|---|---|
| Total income | ₹4,554 crore | 9% |
| Revenue from operations | ₹4,067 crore | 11% |
| PBT from continuing operations | ₹3,425 crore | 13% |
| Normalised PBT growth | — | 9% |
| Profit after tax | ₹2,578 crore | 23% |
| EPS | ₹10.41 | Non-annualised |
The numbers demonstrate the strength of NSE’s operating franchise. The exchange benefits from its established market position, transaction infrastructure, clearing ecosystem and growing demand for market data.
The more important investment question, however, is whether NSE can sustain this growth while broadening revenue beyond transaction charges.
For the first half of FY27, NSE reported consolidated total income of ₹9,807 crore, an increase of 9% year-on-year. Revenue from operations grew 12% to ₹8,627 crore.
Profit after tax increased 13% to ₹5,698 crore, with non-annualised EPS of ₹23.02.
| H1 FY27 metric | Reported performance |
|---|---|
| Consolidated total income | ₹9,807 crore |
| Revenue from operations | ₹8,627 crore |
| Profit after tax | ₹5,698 crore |
| EPS | ₹23.02 |
| Operating EBITDA margin | 77% |
| Normalised PBT margin | 76% |
| Net profit margin | 58% |
| Return on equity | 19% (non-annualised) |
The 77% operating EBITDA margin highlights the scalability of NSE’s business model. Once the technology infrastructure, exchange platform and regulatory framework are established, incremental transaction and service revenues can contribute meaningfully to profitability.
However, maintaining these margins will require continued investment in technology, cyber security, infrastructure and regulatory capabilities.
Transaction charges increased 9% year-on-year to ₹3,035 crore in Q2 FY27. This segment remained NSE’s largest revenue contributor.
The revenue breakdown reveals an important trend: equity options remain the largest transaction-revenue stream, while cash-market activity is growing faster.
| Revenue segment | Q2 FY27 revenue | YoY growth |
|---|---|---|
| Equity options | ₹2,216 crore | +6% |
| Cash-market transaction charges | ₹474 crore | +30% |
| Equity futures | ₹328 crore | Not specified |
| Total transaction charges | ₹3,035 crore | +9% |
Weekly Nifty index options generated ₹1,699 crore during the quarter, equivalent to approximately 38% of NSE’s total income.
This concentration is a key factor in assessing earnings quality. The options franchise generates substantial revenue, but the exchange remains exposed to changes in derivatives participation, trading volumes and regulatory policy.
NSE reported a 68% market share in equity options based on premium turnover. Management explained that the expiry-day holiday effect influenced the reported figure and estimated the adjusted market share at approximately 70%.
The exchange also indicated:
This suggests that NSE’s competitive position remains particularly strong across monthly index and single-stock options.
For investors, the important monitorable is the sustainability of weekly index options participation, given its substantial contribution to exchange revenue.
NSE’s cash-market transaction revenue increased 30% year-on-year to ₹474 crore.
Average daily turnover in the equity cash market increased 23.7% year-on-year to ₹1.18 lakh crore in Q2 FY27.
The exchange continues to benefit from expanding investor participation and activity in India’s primary and secondary equity markets.
However, cash-market turnover declined approximately 13% sequentially, from ₹1,35,949 crore in Q1 FY27 to ₹1,18,377 crore in Q2 FY27.
This distinction is important: the year-on-year trend remains positive, but sequential activity was softer.
Management expects regulatory initiatives and structural reforms, including changes to the closing auction session and securities lending and borrowing framework, to support further cash-market development.
A sustained increase in cash-market participation would help broaden NSE’s earnings base beyond derivatives.
Listing-services revenue increased 70% year-on-year to ₹150 crore in Q2 FY27.
The quarter witnessed 62 mainboard listings, while total equity raised through these listings reached ₹2.4 lakh crore, an increase of 111% year-on-year, according to management’s conference-call commentary.
Across mainboard and SME platforms, 87 companies were listed and raised ₹66,447 crore. September alone recorded 31 listings, the highest number in a single month during the period discussed.
Other important capital-market developments included:
The growth in primary-market activity strengthens NSE’s role in India’s capital-formation ecosystem.
For the exchange, higher listing activity contributes to direct listing revenue and supports the wider ecosystem of trading, clearing, settlement and market-data services.
Data-related services generated ₹531 crore in Q2 FY27, increasing 8% year-on-year and contributing close to 13% of operating income.
This business includes:
NSE also launched Market LENS, an in-house stock-screening and analytics platform covering more than 2,000 stocks.
During the earnings call, management indicated that the platform could eventually provide access to approximately 10,000 data sets. NSE intends to offer the service free initially and is evaluating the possibility of charging a modest fee in the future.
This is an important strategic development.
Market-data businesses can potentially generate recurring revenue without depending entirely on daily market turnover. If NSE successfully develops a broader paid-data ecosystem, it could strengthen revenue diversification and customer engagement.
The company also introduced Model Context Protocol-based connectivity to allow external AI agents to access market data.
These initiatives position NSE to participate in the evolving market-data and financial-technology ecosystem.
NSE’s co-location business remains strategically significant for institutional participants, proprietary trading firms, brokers and algorithmic trading operations.
Management reported:
| Co-location metric | Position |
|---|---|
| Total racks | 1,868 |
| Full rack equivalents added since January 2025 | Approximately 800 |
| Members using co-location racks | Nearly 300 |
NSE indicated that it currently has surplus rack capacity and the ability to expand infrastructure as demand develops.
For algorithmic trading firms, co-location offers proximity to exchange trading systems and supports low-latency order transmission.
The commercial opportunity extends beyond rack rentals. Increased rack utilisation and higher message and order activity can also support connectivity and transaction-related revenues.
From a market-infrastructure perspective, continued investment in low-latency systems, resilience and capacity is essential as electronic trading volumes and algorithmic participation evolve.
Commodity derivatives were among the strongest operational growth areas discussed during the earnings call.
Commodity futures average daily turnover increased approximately 38% sequentially to ₹137.6 crore.
Commodity options average daily premium turnover increased 116% sequentially to ₹296.8 crore, reaching approximately eight times the Q2 FY26 level.
Crude oil options were the principal growth driver.
Management highlighted that monthly commodity options premium turnover increased from approximately ₹880 crore in January 2026 to approximately ₹8,200 crore in October 2026.
The daily premium turnover associated with crude oil options expiry increased from approximately ₹22 crore in December 2025 to approximately ₹4,003 crore in October 2026.
On October 8, 2026, more than 1,047 million barrels were traded on the latest expiry day discussed during the call.
Management attributed the growth to deeper member participation, improved market connectivity, product development and changes in crude oil options expiry timing.
The exchange also highlighted the potential for similar growth in other commodity contracts as the market develops.
Commodity derivatives provide an opportunity to diversify the exchange’s activity beyond equity markets. However, investors should distinguish between strong growth from a relatively small base and a mature, consistently profitable revenue stream.
NSE’s subsidiaries extend its presence across clearing, data, index services and international exchange operations.
| Subsidiary | H1 FY27 total income | H1 FY27 PAT | YoY PAT growth |
|---|---|---|---|
| NSE Clearing | ₹1,152 crore | ₹597 crore | +11% |
| NSE Data & Analytics | ₹278 crore | ₹123 crore | +61% |
| NSE Indices | ₹104 crore | ₹63 crore | +9% |
| NSE International Exchange | ₹79 crore | ₹15 crore | 4.3 times |
NSE Data & Analytics is particularly noteworthy, with income growth of 45% and PAT growth of 61%.
This performance reinforces the potential of data, analytics and information services as complementary businesses.
NSE International Exchange also recorded significant profit growth, although the reported profit base remains relatively small.
The subsidiaries collectively strengthen NSE’s presence across the broader financial-market infrastructure value chain.
Consolidated expenditure declined 51% year-on-year to ₹1,161 crore in Q2 FY27.
This decline should not be interpreted as a recurring reduction in the cost base. The corresponding quarter of FY26 included a one-time SEBI settlement provision of ₹1,297 crore.
Excluding that provision, consolidated expenditure increased approximately 10% year-on-year.
Technology expenses increased 22% during Q2 FY27, reflecting investments in platform modernisation, resilience and cyber security. Employee expenses increased 18%, partly due to annual increments, a higher employee base and wage-code-related actuarial assumptions.
For H1 FY27:
Management indicated that technology expenses could grow at a mid-teens rate, with the current expenditure level representing approximately 8.7% of operating revenue.
The CFO also indicated that H2 FY27 capital expenditure could be approximately ₹450 crore, broadly in line with the first half.
As of September 30, 2026:
| Balance-sheet metric | Amount |
|---|---|
| Net worth | ₹28,907 crore |
| Total treasury investments | ₹52,613 crore |
| Corporate treasury investments | ₹34,699 crore |
| Core Settlement Guarantee Fund | ₹13,665 crore |
| Investor Protection Fund | ₹2,973 crore |
| Risk reserves | ₹4,805 crore |
The balance sheet provides substantial financial capacity to support infrastructure investment, risk management and future business development.
Management highlighted several initiatives that could support NSE’s future development.
Cash-market expansion: Changes to the closing auction session, securities lending and borrowing reforms, and other regulatory initiatives could support greater cash-market participation.
Corporate Bond Index Futures: NSE has received SEBI’s approval for the product and is awaiting RBI approval before launch.
Market-data monetisation: Market LENS could create a new avenue for investor-facing data services and potentially recurring revenue.
Commodity derivatives: Continued member onboarding, contract innovation and improved connectivity could help expand activity across commodities.
Electronic Gold Receipts: NSE is working to develop the ecosystem for converting physical domestic gold into exchange-traded electronic receipts.
Artificial intelligence: Management is working with generative AI in compliance, customer support, operational efficiency and software engineering. These initiatives are being developed within NSE’s own data centre because of the private nature of much of the exchange’s data.
These initiatives are strategic opportunities rather than guaranteed sources of future revenue. Their financial contribution will depend on regulatory approvals, market adoption, execution and monetisation.
Despite strong profitability and market leadership, several factors deserve close attention.
1. Derivatives revenue concentration
Weekly Nifty options contributed ₹1,699 crore, approximately 38% of total quarterly income. Any sustained decline in index-options activity could affect revenue growth.
2. Regulatory developments
SEBI and other regulators influence expiry structures, margins, trading practices and market participation. Changes to the regulatory framework can affect exchange volumes and revenue composition.
3. Market-share competition
NSE retains a dominant position, but the reported equity options market share was 68%, or approximately 70% after management’s holiday adjustment. Maintaining its competitive position remains important.
4. Technology and cyber-security expenditure
Technology investment is essential for a market infrastructure institution. However, rising expenditure must be supported by revenue growth and operating efficiency.
5. Market activity and volatility
Exchange transaction revenue is linked to market participation and traded activity. Lower volumes, changing investor behaviour or adverse market conditions could affect earnings.
6. Valuation risk
Strong earnings growth and market leadership do not automatically make a stock attractive at every price. Investors must assess valuation against sustainable earnings, future growth, cash generation, regulatory risks and the quality of revenue.
The conference-call transcript provides detailed operating and financial information but does not provide the market price or a complete valuation framework.
Consequently, a fair-value estimate or buy/sell recommendation cannot be established from this transcript alone.
Investors evaluating NSE should consider:
A useful approach is to assess the business under three scenarios: continued strong derivatives activity, gradual diversification into cash and data revenues, and a downside case involving lower trading activity or adverse regulatory changes.
The valuation should reflect the probability and financial impact of these outcomes rather than relying only on the latest quarter’s PAT growth.
NSE’s Q2 FY27 results demonstrate the financial strength of a dominant market infrastructure business.
Revenue from operations grew 11%, PAT increased 23%, and the company maintained an H1 operating EBITDA margin of 77%. Its market position across cash equities, equity futures, options and debt-market infrastructure remains substantial.
Three developments stand out.
First, cash-market transaction revenue grew 30%, indicating that the exchange’s earnings base is not dependent exclusively on derivatives.
Second, commodity options recorded significant growth, offering a potential additional source of activity and revenue diversification.
Third, data services, Market LENS and co-location infrastructure provide opportunities to develop complementary revenue streams.
The key concern remains the contribution of weekly Nifty options, which accounted for approximately 38% of total quarterly income. The sustainability of this revenue stream and the regulatory environment will remain important variables in forecasting future earnings.
Institutional bottom line: NSE combines market leadership, high operating margins, a strong balance sheet and a strategically important position in India’s financial-market infrastructure. The long-term opportunity is supported by growth in investor participation, capital formation, market-data consumption and technology-led trading. However, investment attractiveness must ultimately be determined by valuation and the sustainability of earnings, not by quarterly profit growth alone.
1. What was NSE’s net profit in Q2 FY27?
NSE reported consolidated profit after tax of ₹2,578 crore in Q2 FY27, an increase of 23% year-on-year.
2. What was NSE’s total income in Q2 FY27?
Consolidated total income was ₹4,554 crore, compared with ₹4,160 crore in Q2 FY26.
3. What was NSE’s revenue from operations?
Revenue from operations increased 11% year-on-year to ₹4,067 crore.
4. How much revenue did NSE generate from equity options?
Equity options transaction revenue was ₹2,216 crore. Weekly Nifty index options contributed ₹1,699 crore.
5. What was NSE’s equity options market share?
The reported market share was 68% based on premium turnover. Management estimated approximately 70% after adjusting for expiry-day holidays.
6. What was NSE’s H1 FY27 profit?
Profit after tax for H1 FY27 was ₹5,698 crore, up 13% year-on-year.
7. What was NSE’s operating EBITDA margin?
The operating EBITDA margin for H1 FY27 was 77%.
8. How did NSE’s commodity options business perform?
Commodity options average daily premium turnover increased 116% sequentially to ₹296.8 crore in Q2 FY27, approximately eight times the Q2 FY26 level.
9. What is Market LENS?
Market LENS is NSE’s in-house stock-screening and analytics platform, launched to provide investors with market data and analytical capabilities. Management indicated that approximately 10,000 data sets are envisaged for the platform.
10. What are the major risks for NSE?
Key risks include dependence on weekly index-options revenue, regulatory changes, competition, trading-volume fluctuations and rising technology expenditure.
Disclaimer: This article is for educational and informational purposes only. It is based primarily on the company’s Q2 FY27 earnings conference-call transcript. It does not constitute investment advice or a recommendation to buy or sell any security. Investors should independently evaluate financial statements, valuation, regulatory developments and their own risk profile before making investment decisions.
Research and analysis: AlgoTradingDesk.com
SEO title: NSE Q2 FY27 Results: Profit Jumps 23% to ₹2,578 Crore
URL slug: nse-q2-fy27-results-profit-revenue-analysis
Focus keyphrase: NSE Q2 FY27 Results
Meta description: NSE Q2 FY27 results: Net profit rises 23% to ₹2,578 crore, revenue grows 11% to ₹4,067 crore. Explore options, cash markets, commodities and growth outlook.
Secondary keywords: NSE quarterly results FY27, NSE Q2 earnings analysis, NSE profit growth, NSE revenue breakdown, NSE options revenue, NSE commodity derivatives, NSE market share, National Stock Exchange financial results, NSE Market LENS, NSE co-location business.
Suggested featured-image headline:
NSE Q2 FY27 RESULTS
PROFIT JUMPS 23%
₹2,578 CRORE PAT
₹4,554 CRORE TOTAL INCOME
Source: NSE Q2 FY27 earnings conference-call transcript, November 3, 2026. The article uses financial tables and text only—no graphs or charts.
Market Data Feed Handler in HFT — How Trading Algorithms Process Millions of Market Updates…
Self-Trade Prevention in HFT: How Algorithms Avoid Trading Against Their Own Orders Introduction: When Your…
HFT Kill Switch: How Trading Desks Prevent Runaway Algorithms and Control Trading Disasters Introduction: When…
Order-to-Trade Ratio in HFT: How Exchanges Monitor Algorithmic Activity and Control Excessive Messaging Introduction: In…
Iceberg Orders in HFT: How Algorithms Detect Hidden Liquidity Before the Market Moves Introduction: The…
Options Market Making in HFT: How Algorithms Manage Greeks and Volatility Risk Introduction: Why Options…