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The National Stock Exchange (NSE) has kicked off FY26 on a strong note. Its Q1 numbers show a curious mix: Profits climbing even as revenue shrank. Thanks to tighter cost control and a pick-up in trading volumes, the exchange’s net profit rose 14 per cent year-on-year, underscoring its ability to stay profitable even in a choppy market backdrop.
Q1 FY26 results snapshot
| Metric | Q1 FY26 | Q1 FY25 | YoY change |
|---|---|---|---|
| Net profit (Rs crore) | 2,924 | 2,567 | 14 per cent |
| Total income (Rs crore) | 4,798 | 4,938 | - 3 per cent |
| Operating revenue (Rs crore) | 4,032 | 4,534 | - 11 per cent |
| EBITDA (Rs crore) | 3,130 | 3,111 | 1% |
| EBITDA margin (%) | 78 | 76 | 200 bps |
What’s driving this?
- Cost discipline: Expenses fell 6 per cent sequentially, boosting margins.
- Trading volumes: Cash and derivatives turnover climbed, lifting transaction charges 7 per cent quarter-on-quarter (QoQ).
- Leverage effect: Higher margins offset weaker revenue, reflecting strong operating leverage.
- Tax contributions: NSE paid Rs 14,331 crore to the exchequer, highlighting its systemic importance.
Why it matters for investors
This result paints a positive picture ahead of NSE’s much-awaited IPO. Profits are growing faster than income, signalling robust efficiency. Rising trading volumes also suggest active participation by market players, a healthy sign for sentiment.
The only red flag: Revenue softness, driven by moderation in certain fee-based income streams. Still, with expanding margins and tight cost controls, NSE looks well-poised heading into its public debut.
The takeaway
If Q1 is any indication, NSE is in good shape—leaner, profitable, and supported by steady trading activity. For prospective IPO investors, these numbers build confidence in the exchange’s earnings power and structural moat.
About NSE
As India’s largest stock exchange, NSE drives much of the country’s equity and derivatives trading. Its revenues primarily come from transaction charges, data services, and listing fees. With an IPO on the horizon, each quarterly result is closely watched for signs of operational strength.
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Disclaimer: This article was crafted with the aid of artificial intelligence and meticulously reviewed and edited by our human experts to ensure accuracy and provide valuable insights. It's intended for informational purposes only. We encourage you to conduct your own thorough research before making any investment decisions.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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