National Stock Exchange Profit Falls 33% in Q2 FY26 Amidst Sebi Settlement Fee Provision

SEBI/Exchange

Updated on 05 Nov 2025, 08:19 am

Reviewed By

Akshat Lakshkar | Whalesbook News Team

Short Description :

The National Stock Exchange (NSE) reported a 33% year-on-year drop in consolidated net profit to ₹2,098 crore for the September quarter of FY26. This decline was primarily due to a significant one-time provision of ₹1,297 crore for Securities and Exchange Board of India (Sebi) settlement fees related to the Colocation and Dark Fibre issues. Excluding this provision, the exchange's net profit showed an 8% year-on-year growth.

National Stock Exchange Profit Falls 33% in Q2 FY26 Amidst Sebi Settlement Fee Provision

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Detailed Coverage :

The National Stock Exchange (NSE) announced its financial results for the second quarter of Fiscal Year 2026, revealing a consolidated net profit of ₹2,098 crore, a 33% decrease from ₹3,137 crore in the same period last year. This reduction was largely attributed to a substantial one-time provision of ₹1,297 crore set aside for settlement fees with the Securities and Exchange Board of India (Sebi). These fees stem from past issues concerning Colocation and Dark Fibre services.

However, when this significant provision is excluded, NSE's net profit actually grew by 8% year-on-year to ₹3,395 crore, indicating a healthy underlying business performance. Total income for the quarter was ₹4,160 crore, down 17% year-on-year, also impacted by lower trading volumes in both the cash and derivatives markets. Expenditure surged to ₹2,354 crore, mainly due to the Sebi provision. Excluding the provision, expenditure remained stable. Operating EBITDA, adjusted for the provision, stood strong at ₹2,782 crore with a 76% margin.

Impact This news has a moderate impact on investor sentiment regarding the NSE itself, as it highlights a significant regulatory cost. However, the underlying operational performance, excluding the one-time charge, remains robust, suggesting the core business is healthy. The Sebi settlement itself could have broader implications for market infrastructure providers. Impact rating: 5/10.

Terms Sebi: The Securities and Exchange Board of India, the primary regulator for India's securities markets. Settlement Fees: Payments made to a regulatory body to resolve a dispute or case. Colocation: A service that allows trading firms to place their servers within an exchange's data center for faster trade execution. Dark Fibre: Unused fiber optic cables leased for high-speed, private data communication, often used in high-frequency trading. Consolidated Net Profit: The total profit of a company and its subsidiaries after all expenses and taxes. YoY (Year-on-Year): A comparison of financial results over the same period in the previous year. QoQ (Quarter-on-Quarter): A comparison of financial results with the immediately preceding quarter. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of operational profitability.