NSE Q2 consol PAT down 33% on provision for colocation case settlement fees
This story was originally published at 20:31 IST on 4 November 2025
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--NSE Jul-Sept consol net profit INR 20.98 bln vs INR 31.37 bln year ago
--NSE Jul-Sept consol revenue INR 36.77 bln vs INR 45.10 bln year ago
--NSE made provision of INR 12.97 bln in Q2 for SEBI settlement fees
--NSE Jul-Sept net profit excluding SEBI settlement fees is INR 33.96 bln
--NSE Jul-Sept consol operating EBITDA INR 14.84 bln vs INR 33.44 bln yr ago
--NSE Jul-Sept consol operating EBITDA margin 40% vs 74% year ago
--NSE: Awaiting reply from SEBI on colocation case settlement application
--NSE Apr-Sept consol net profit INR 50.22 bln vs INR 57.04 bln year ago
--NSE Apr-Sept consol revenue INR 77.09 bln vs INR 90.20 bln year ago
--NSE Jul-Sept equity options segment mkt share 75.6% vs 78.6% qtr ago
--NSE Jul-Sept cash segment mkt share 92.3% vs 93.8% qtr ago
--NSE Q2 equity options avg daily volume INR 464.42 bln, down 29% on yr
--NSE Q2 equity futures avg daily volume INR 1.41 tln, down 30% on year
--NSE Q2 cash market avg daily volume INR 957.05 bln, down 26% on year
MUMBAI – The National Stock Exchange reported a sharp fall in its consolidated net profit for the September quarter as the exchange made a provision of nearly INR 13 billion towards a fee it might have to pay to the Securities and Exchange Board of India to settle the colocation and dark fibre case. The company's profits were also hit by lower revenue during the quarter, largely due to a decline in transaction charges in the equity options segment.
NSE reported a consolidated net profit of INR 20.98 billion in Jul-Sept, down 33% on year and 28% on quarter. This included the impact of provisions made towards the settlement fee for the colocation case, in which the exchange's employees were found to be giving preference to some brokerages in accessing servers. Excluding the provision for SEBI settlement fees, the net profit was up 8% on year to INR 33.96 billion.
The provision hit operating earnings before interest, tax, depreciation, and amortisation during the quarter, which fell 56% on year to INR 14.84 billion. Its operating EBITDA was down 17% excluding the impact of the provision towards SEBI fees. Its operating EBITDA margin declined to 40% from 74% year ago, but the margin adjusted for the provision was better at 76%.
NSE said it was awaiting SEBI's response to its application to settle the colocation case. "... the future outcome is uncertain at this stage," the company said in a press release.
The exchange has lost market share to its competitor, the BSE, over the past several quarters, which impacted revenue growth in the September quarter as well. Its consolidated revenue in Jul-Sept was down 18% on year to INR 36.77 billion, largely due to lower transaction charges and volumes across segments.
The exchange's market share in the equity options segment, in terms of premium value, fell to 75.6% in the reporting quarter from nearly 89% in the year-ago period. The exchange collects almost two-thirds of the transaction fee from the options segment, and a market share loss hits overall revenue. Its income from transaction charges in the options segment was down 20% on year to INR 20.83 billion.
The company has also lost business in the cash segment, where its market share declined slightly to 92.3% from 93% year ago. Income from transaction charges in the cash segment was down 27% to INR 3.64 billion and that from the equity futures was down 31% to INR 3.12 billion.
Volumes were down across segments, with average daily volumes for the cash segment down 26% on year to INR 957 billion. Average daily volumes for the equity futures were down 30% on year to INR 1.41 trillion and the same for the equity options segment were down 29% to INR 464 billion.
During the six months ended in September, NSE's consolidated net profit was down 12% on year to INR 50.22 billion. Its revenue during the same period was down 15% to INR 77.09 billion. End
Reported by Anshul Choudhary
Edited by Saji George Titus
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