The National Stock Exchange of India reported its Q2 FY27 financial results on November 3, 2026, delivering a 23% increase in consolidated profit compared with the previous year. However, revenue and profitability declined sequentially, highlighting the impact of changing trading activity across Indian financial markets.

Consolidated profit after tax reached ₹2,577.62 crore, compared with ₹2,098.47 crore in Q2 FY26. The improvement was supported by higher transaction income and a more favourable expense comparison, although the annual growth requires closer examination.

Revenue from operations increased 10.6% year on year to ₹4,066.80 crore from ₹3,676.80 crore. Consolidated total income rose approximately 9% to ₹4,554 crore, reflecting growth across trading and other exchange services.

A pre results research preview published by StockWatch had estimated operating revenue of approximately ₹3,850 crore. NSE exceeded this estimate by ₹216.8 crore, representing a positive difference of around 5.6%, although this was an individual research forecast rather than a verified market consensus.

The same preview expected quarterly net profit between ₹2,350 crore and ₹2,450 crore. Actual profit of ₹2,577.62 crore exceeded the upper end by approximately ₹127.6 crore, or 5.2%, indicating a stronger outcome than this particular estimate anticipated.

Transaction charge revenue reached ₹3,035 crore, compared with the preview estimate of approximately ₹3,050 crore. This represented a shortfall of just ₹15 crore, suggesting that trading related income was broadly consistent with the published expectation.

Consolidated operating EBITDA increased 107% year on year to ₹3,079 crore, with an EBITDA margin of approximately 76%. The unusually strong annual growth was influenced by a significant expense provision recorded in the corresponding quarter of the previous year.

In Q2 FY26, NSE had recognised a provision of approximately ₹1,297 crore for SEBI settlement fees relating to the colocation and dark fibre matters. This elevated the previous year’s expenditure and made the current year’s reported EBITDA growth appear particularly strong.

After adjusting for exceptional factors in the comparative period, management indicated that normalised profit before tax increased approximately 9% year on year. This provides a more measured view of underlying earnings growth than the headline 107% EBITDA increase.

Sequentially, consolidated revenue declined 10.8% from ₹4,560 crore in Q1 FY27. Net profit fell approximately 17.4% from ₹3,120 crore, indicating that the September quarter was weaker than the preceding three months despite positive annual growth.

Operating EBITDA declined approximately 13.3% sequentially from ₹3,551 crore, while the EBITDA margin moderated from about 77.9% to 75.7%. The decline reflects the impact of lower revenue on a business with substantial operating leverage.

Transaction charge revenue fell 16% sequentially from ₹3,623 crore to ₹3,035 crore. This was a major contributor to the quarterly revenue decline because transaction charges remain the exchange’s largest operating income source.

Cash market average daily traded volume increased 24% year on year to ₹1,18,377 crore. However, trading activity was lower sequentially, demonstrating that annual growth in market participation did not necessarily translate into continued quarterly expansion.

Equity options average daily traded volume, measured by premium value, increased 3% year on year to ₹47,977 crore. Sequentially, options activity weakened as changes in market structure and trading behaviour affected transaction volumes.

Reuters reported that the introduction of a closing auction session in August contributed to changes in intraday trading activity. This development is relevant because the exchange’s revenue remains sensitive to turnover, transaction frequency and the composition of market participation.

NSE also benefited from growth in services beyond transaction charges. Revenue from data feed and terminal services increased 43% year on year to ₹165 crore, while listing services revenue increased 70% to ₹150 crore.

Operating investment income increased approximately 9% to ₹237 crore, and data connectivity charges contributed ₹267 crore. These businesses provide additional revenue streams that can reduce dependence on transaction activity over time.

For the first half of FY27, consolidated revenue from operations reached ₹8,627 crore, while total income increased 9% to ₹9,807 crore. Operating EBITDA rose 45% to ₹6,674 crore, with an EBITDA margin of approximately 77%.

First half consolidated net profit increased 13% to ₹5,698 crore. This performance indicates that the exchange maintained positive annual earnings growth despite the sequential slowdown during the September quarter.

Alongside the results, NSE approved a proposal to divest up to 40% of its wholly owned subsidiary, National Coal Exchange of India Limited. The proposed secondary sale may take place in one or more tranches, with transaction terms yet to be finalised.

NSE enters the second half of FY27 with a dominant position in Indian capital market infrastructure, growing non transaction revenue streams and strong operating profitability. However, the sustainability of earnings growth will depend on trading volumes, regulatory developments, cost discipline and the exchange’s ability to diversify its revenue base.