NSE Q3 Profit Dips 37% YoY as IPO NOC Sparks Listing Hopes
NSE Q3 Profit Dips 37% YoY as IPO NOC Sparks Listing Hopes
NSE reports a sharp YoY profit fall in Q3, but QoQ gains and higher trading volumes hint at a rebound amid SEBI's IPO clearance.
India’s largest stock exchange, the National Stock Exchange (NSE), reported a sharp 37% year-on-year decline in consolidated net profit to Rs 2,408 crore for the third quarter, even as it marked a key regulatory milestone with the SEBI NOC for its long-awaited IPO.
Total income for the quarter fell 9% year-on-year to Rs 4,395 crore, primarily due to lower transaction charges. However, on a sequential basis, profit after tax rose 15% quarter-on-quarter and total income grew 6%, helped by higher trading volumes.
Revenue pressure remained as transaction charges declined 12% year-on-year to Rs 3,033 crore, reflecting softer activity compared to the base period. On a sequential basis, transaction revenue rose 9%, aided by a pickup in volumes across the equity cash market and derivatives segments.
Operating performance also weakened on an annual basis. EBITDA declined 16% year-on-year to ₹2,851 crore, while operating margins slipped to 73%, signaling the impact of lower revenue and operating leverage.
Other revenue streams offered some support, with data feed and terminal services jumping 17% year-on-year to ₹121 crore, while listing services revenue rose 11% to ₹111 crore, highlighting the growing contribution of non-transaction income.
IPO plans Last Friday, the Securities and Exchange Commission gave the long-awaited nod for NSE’s IPO, ending a decade-long regulatory overhang and paving the way for the exchange to list.
