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What is the story about?
The National Stock Exchange of India (NSE) reported a 7% year-on-year rise in consolidated net profit for the June quarter, supported by higher operating income and increased revenue from transaction charges.
The exchange posted a consolidated profit after tax (PAT) of ₹3,120 crore for the quarter ended June 2026, compared with ₹2,924 crore a year earlier.
Total income increased 9% year-on-year to ₹5,252 crore from ₹4,798 crore.
The results indicate that trading activity remained healthy during the quarter, helping the exchange generate higher fee income.
Transaction charges remain the biggest revenue driver
Revenue from transaction charges—NSE's largest source of income—rose to ₹3,623 crore from ₹3,154 crore a year ago.
Other key revenue streams included:
Transaction charges account for the bulk of NSE's earnings because the exchange collects a fee every time investors and traders execute transactions on its platform. Higher trading volumes generally translate into higher revenue.
Expenses rise, but profitability remains strong
Total expenses increased to ₹1,129 crore from ₹1,053 crore in the corresponding quarter last year.
Even with higher operating costs, the exchange maintained healthy profit growth, reflecting the scalability of the exchange business model where incremental trading volumes can generate relatively higher earnings.
Over ₹20,000 crore contributed to the exchequer
During the quarter, NSE contributed ₹20,579 crore to the government through various taxes and statutory levies.
This included:
Of the total STT and CTT collections:
The figures underline the dominance of derivatives trading on Indian exchanges, which continues to account for the largest share of transaction-related tax collections.
IPO moves closer
The quarterly results come after NSE filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in June for its long-awaited initial public offering.
The proposed IPO comprises an offer for sale (OFS) of 14.89 crore equity shares, representing nearly 6% of the exchange's equity.
Since the issue is entirely an offer for sale, NSE itself will not receive any proceeds from the IPO. Instead, the existing shareholders will sell part of their holdings to the public.
The offering is expected to raise around ₹30,000 crore, making it one of the largest IPOs in India's capital markets history.
Also Read: Explained - The key factors behind the 17% jump in Data Patterns in two sessions
The exchange posted a consolidated profit after tax (PAT) of ₹3,120 crore for the quarter ended June 2026, compared with ₹2,924 crore a year earlier.
Total income increased 9% year-on-year to ₹5,252 crore from ₹4,798 crore.
The results indicate that trading activity remained healthy during the quarter, helping the exchange generate higher fee income.
Transaction charges remain the biggest revenue driver
Revenue from transaction charges—NSE's largest source of income—rose to ₹3,623 crore from ₹3,154 crore a year ago.
Other key revenue streams included:
- Data connectivity charges: ₹258 crore
- Operating investment income: ₹234 crore
- Data feed and terminal services: ₹150 crore
Transaction charges account for the bulk of NSE's earnings because the exchange collects a fee every time investors and traders execute transactions on its platform. Higher trading volumes generally translate into higher revenue.
Expenses rise, but profitability remains strong
Total expenses increased to ₹1,129 crore from ₹1,053 crore in the corresponding quarter last year.
Even with higher operating costs, the exchange maintained healthy profit growth, reflecting the scalability of the exchange business model where incremental trading volumes can generate relatively higher earnings.
Over ₹20,000 crore contributed to the exchequer
During the quarter, NSE contributed ₹20,579 crore to the government through various taxes and statutory levies.
This included:
- ₹18,313 crore in Securities Transaction Tax (STT) and Commodities Transaction Tax (CTT)
- ₹980 crore in stamp duty
- ₹657 crore in GST
- ₹373 crore in income tax
- ₹256 crore in SEBI fees
Of the total STT and CTT collections:
- 57% came from the equity derivatives segment,
- 37% from the cash delivery market, and
- 6% from the cash intraday segment.
The figures underline the dominance of derivatives trading on Indian exchanges, which continues to account for the largest share of transaction-related tax collections.
IPO moves closer
The quarterly results come after NSE filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in June for its long-awaited initial public offering.
The proposed IPO comprises an offer for sale (OFS) of 14.89 crore equity shares, representing nearly 6% of the exchange's equity.
Since the issue is entirely an offer for sale, NSE itself will not receive any proceeds from the IPO. Instead, the existing shareholders will sell part of their holdings to the public.
The offering is expected to raise around ₹30,000 crore, making it one of the largest IPOs in India's capital markets history.
Also Read: Explained - The key factors behind the 17% jump in Data Patterns in two sessions
