National Stock Exchange Reports Strong Q2FY26 Earnings, Maintains Dominant Market Share

The National Stock Exchange of India (NSE) announced its financial results for the second quarter and the first half of fiscal year 2026. For Q2FY26, the exchange reported a consolidated total income of ₹4,160 crore. Profit after tax, excluding settlement fees, saw a substantial 16% increase on a quarter-on-quarter basis, resulting in a strong net profit margin of 63%.

In the first half of FY26, the normalized consolidated operating EBITDA margin stood at 77%, and consolidated profit after tax (excluding settlement fees) grew by 11% year-on-year. Revenues from listing services also showed positive growth, up 14% QoQ and 10% YoY in Q2FY26.

NSE continues to solidify its leadership position in the Indian capital markets. In H1FY26, it held a dominant 93% market share in the cash segment, 99.8% in equity futures, and 77% in equity options. In the debt market, its share was also significant, reaching 97% in the RFQ segment and 100% in Tri-party repo trades during Q2FY26.

The exchange is significantly increasing its investment in technology, with technology expenses rising by 42% year-on-year to ₹642 crore in H1FY26, indicating a focus on infrastructure and innovation.

Impact: These results demonstrate the continued financial strength and market leadership of the NSE. The strong performance and market share are positive indicators for the exchange's business model and operational efficiency. Investors can see this as a sign of stability and growth for a key player in the Indian financial infrastructure. The increased technology spending suggests a forward-looking approach to maintain its competitive edge and enhance trading platforms. Impact rating: 7/10.

Definitions: Consolidated Total Income: The total revenue earned by a company and its subsidiaries combined. Profit After Tax (PAT): The profit remaining after all expenses, taxes, and interests have been deducted. Settlement Fees: Charges levied for completing financial transactions in the stock market. Quarter-on-Quarter (QoQ): Comparing financial performance from one quarter to the next. Year-on-Year (YoY): Comparing financial performance from one year to the same period in the previous year. Net Profit Margin: A profitability ratio that measures how much net income or profit is generated as a percentage of revenue. Operating EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization, representing operational profitability before financing and accounting decisions. Market Share: The percentage of total sales in an industry generated by a particular company. Cash Market Segment: Where securities are traded for immediate delivery and payment. Equity Futures: Contracts to buy or sell a stock index or stock at a predetermined price on a specific future date. Equity Options: Contracts giving the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a certain date. Debt Secondary Market: Where previously issued debt securities are traded between investors. RFQ (Request for Quote) Segment: A trading protocol where participants solicit quotes from multiple dealers for a specific security. CBRICS: A reporting framework, often related to debt market transactions. Tri-party Repo: A repurchase agreement involving a third party (often a clearing agent) that holds the collateral. Listing Services: Fees charged by exchanges for companies to list their shares or other securities. Technology Expenses: Costs incurred for IT infrastructure, software, hardware, and related services.