Results Update
Q4 FY26 · May 2026
National Stock
Exchange of India
Exchange of India
India's largest stock exchange · Pre-IPO · DRHP filing expected June 2026
Revenue: +32% YoY
EBITDA: 73% Margin
FY26 PAT: −15% YoY
Revenue Q4 FY26
₹4,968 Cr
+32% YoY | +25% QoQ
PAT Q4 FY26
₹2,871 Cr
+8.3% YoY | +19% QoQ
EBITDA Margin
73%
vs 74% in Q4 FY25
For informational purposes only. Not investment advice.
01
Quarter Scorecard — QoQ & YoY Performance
| Particulars (₹ Crore) | Q4 FY26 This Quarter |
Q3 FY26 Last Quarter |
Q4 FY25 Same Qtr LY |
QoQ % | YoY % |
|---|---|---|---|---|---|
| Revenue from Operations | 4,968 | 3,976 | 3,771 | +25% | +32% |
| Total Income (Consolidated) | 5,360 | 4,397 | 4,397 | +22% | +22% |
| Transaction Charges | 4,077 | 3,037 | ~2,930 | +34% | +39% |
| Operating EBITDA | 3,633 | ~2,850 | ~2,799 | +27% | +30% |
| EBITDA Margin % | 73% | ~72% | ~74% | ~+100 bps | −100 bps |
| Total Expenditure | 1,486 | 1,238 | ~1,200 | +20% | +24% |
| Profit Before Tax | ~3,990* | ~3,330 | ~3,440 | +20% | +16% |
| Profit After Tax (Consolidated) | 2,871 | 2,409 | 2,650 | +19% | +8.3% |
| PAT Margin % | ~54% | ~55% | ~60% | −100 bps | −600 bps |
| EPS (₹) — not annualised | 11.60 | 9.73 | 10.71 | +19% | +8.3% |
| Options ADV (Premium, ₹ Cr/day) | ~67,000+ | ~46,800 | ~62,449 | +43% | +7% |
| Cash Market ADV (₹ Cr/day) | +21% QoQ | base | — | +21% | — |
* Normalised PBT excluding SEBI settlement fees (₹84 Cr) and Labour Code impact. Source: NSE Q4 FY26 Investor Presentation, May 5, 2026.
⚡
Key one-off in Q4: Total expenditure rose 20% QoQ to ₹1,486 Cr, primarily due to a year-end CSR provision of ₹223 Cr (vs just ₹5 Cr in Q3) and an additional ₹84 Cr provision towards the co-location & dark fibre SEBI settlement. Stripping these out, normalised PBT rose 20% QoQ to ~₹3,990 Cr — significantly stronger than the reported PAT line suggests.
UnlistedZone Take
Q4 FY26 Results — Our Headline Read
Recovery quarter, no question about it. After three quarters of volume pressure from SEBI's F&O circular, Q4 FY26 is the clearest signal yet that NSE has absorbed the regulatory shock and is re-accelerating. A 32% YoY revenue jump and 30% EBITDA growth on the back of real volume recovery — not accounting tricks — is exactly what the thesis needed.
QoQ momentum is the real story. Sequential growth of 25% in revenue and 19% in PAT tells us the F&O volume disruption peaked in Q2/Q3 FY26. Options ADV bounced 43% QoQ, cash market grew 21% QoQ. The business is not just recovering — it is compounding again.
Don't let the CSR provision fool you. The 20% QoQ spike in total expenditure is almost entirely one-off: ₹223 Cr CSR year-end provision + ₹84 Cr SEBI settlement provision. On a normalised basis, cost discipline remains intact and operating leverage is working exactly as it should for a near-fixed-cost exchange business.
02
Quarterly Financial Trends
Revenue from Operations — 6 Quarter Trend (₹ Cr)
Q3FY25 to Q4FY26 — showing volume recovery in Q4
PAT — 6 Quarter Trend (₹ Cr)
Bottom-line progression — Q4 FY26 highest in 6 quarters
EBITDA Margin % — Quarterly
Margin trajectory — 73% in Q4
ROE & ROA — Annual Trend
Return profile — grouped bars
EPS Quarterly (₹)
Per share earnings — not annualised
03
Key Segment / Revenue Stream Performance
| Revenue Stream | Q4 FY26 | Q3 FY26 | Q4 FY25 | QoQ % | YoY % | Comment |
|---|---|---|---|---|---|---|
| Transaction Charges | ₹4,077 Cr | ₹3,037 Cr | ~₹2,930 Cr | +34% | +39% | Options ADV +43% QoQ; cash mkt +21% QoQ; strong volume recovery |
| Data Connectivity Charges | ₹269 Cr | ~₹260 Cr | ~₹250 Cr | +3% | +8% | Steady, annuity-type revenue from colocation & connectivity |
| Data Feed & Terminal Services | ₹128 Cr | ~₹122 Cr | ~₹115 Cr | +5% | +11% | Market data monetisation growing steadily |
| Mutual Fund Platform | Growing | — | — | +91% FY | +38% FY | 12.1 Cr orders in FY26; SIP tailwind strong; underappreciated |
| Debt Market (RFQ + TriRepo) | Scaling | — | — | +27% CAGR | +289% (TriRepo) | Corporate bond market deepening; quiet compounding story |
| Index Licensing (NSE Indices) | ~₹38 Cr est. | — | — | +26% FY | +26% FY | ₹152 Cr annual rev — most undermonetised asset on NSE's books |
| Total Revenue from Ops | ₹4,968 Cr | ₹3,976 Cr | ₹3,771 Cr | +25% | +32% |
🔍
Segment highlight — Transaction Charges dominate & recovered hard: At ₹4,077 Cr (82% of Q4 revenue), transaction charges are the engine. The 39% YoY surge shows volumes have well surpassed pre-F&O-circular levels in Q4. Equity options alone account for ~77% of transaction revenues, and the 43% QoQ ADV jump in options is the single most important data point in this results season for NSE investors.
UnlistedZone Take
Segments — What's Really Happening in the Business
Transaction charges' 43% QoQ bounce in options ADV is the green flag. The F&O regulatory shock (SEBI circular, Oct 2024) hit Q1-Q3 hard. Q4 confirms volumes have not just stabilised — they've rebounded sharply. The SEBI changes appear to have been a temporary disruption, not a structural reset of volumes.
Mix shift risk is lower than feared. NSE maintains 93% cash market share and 86.8% overall F&O premium market share (April 2026). BSE has not meaningfully eaten into NSE's position despite the regulatory opening.
The hidden compounders — MF platform, Debt, Index Licensing — are early but real. These three combined generate modest revenues today but are growing 26–289% annually. They diversify NSE away from F&O concentration risk and will matter significantly in 3–5 years post-listing.
04
What's Changed This Quarter
Positive — Volumes Roared Back
Options ADV surged 43% QoQ in Q4. Cash market ADV grew 21% QoQ. This is the clearest proof yet that the SEBI F&O volume shock was a temporary disruption and NSE's core business is back to healthy growth. The exchange's transaction charge revenue of ₹4,077 Cr is the highest in recent quarters.
Positive — IPO in Decisive Phase
NSE has asked bankers to fast-track the DRHP filing with a deadline of June 15, 2026. Board approved OFS structure in February. ~20 existing investors including Temasek, CPPIB, LIC, SBI, and ChrysCapital preparing to sell ~5% stake. Listing expected December 2026. The IPO overhang is becoming an IPO catalyst.
Positive — ₹35/Share Dividend Declared
Board recommended a final dividend of ₹35/share for FY26, including a special one-time payout of ₹10/share. This is 3,500% of face value — a direct cash return for unlisted shareholders and a strong signal of NSE's cash generation confidence even in a year when reported PAT declined 15%.
Concern — SEBI Settlement Still Pending
NSE submitted revised settlement terms of ₹1,491.21 Cr for the co-location and dark fibre cases on March 13, 2026 — still awaiting SEBI's final approval. Total provisioned so far: ₹1,432 Cr in FY26. Until SEBI signs off, this remains an overhang on the balance sheet and a potential DRHP complication.
Concern — FY26 Full Year PAT Down 15%
While largely explained by one-offs (SEBI settlement, discontinued ops, Labour Code), the full-year PAT decline from ₹12,188 Cr to ₹10,302 Cr is real. ROE fell from ~45% to ~33%. EPS dropped from ₹49.24 to ₹41.62. Investors in the unlisted market at ₹2,000+ are pricing in a full FY27 recovery — which now needs to materialise.
Watch — F&O Regulatory Risk Not Fully Gone
The April 2026 F&O market share data showed a slight dip due to market holidays falling on Tuesday (expiry day), impacting volumes. Any additional SEBI restrictions on equity derivatives — position limits, STT changes, further expiry reductions — would hit NSE harder than anyone. Conversely, any easing would be a significant positive trigger.
05
Full Year Actuals — FY26 vs FY25 Performance Summary
| Particulars (₹ Crore) | FY25 Actual | FY26 Actual | YoY Change | Q4 FY26 | Q4 FY25 | YoY (Q) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 17,141 | 16,601 | −3% | 4,968 | 3,771 | +32% |
| Total Income (Consolidated) | 19,177 | 18,713 | −2% | 5,360 | 4,397 | +22% |
| Operating EBITDA | 12,881 | 11,098 | −14% | 3,633 | ~2,799 | +30% |
| EBITDA Margin % | ~75% | ~67% | −800 bps | 73% | ~74% | −100 bps |
| Normalised EBITDA Margin %* | ~75% | ~76% | +100 bps | ~76% | ~74% | +200 bps |
| Profit After Tax (Consolidated) | 12,188 | 10,302 | −15% | 2,871 | 2,650 | +8.3% |
| PAT Margin % (on Rev from Ops) | ~71% | ~62% | −900 bps | ~58% | ~70% | −1,200 bps |
| EPS (₹) — Consolidated | 49.24 | 41.62 | −15% | 11.60* | 10.71* | +8.3% |
| Return on Equity % | ~45% | ~33% | −1,200 bps | — | — | — |
| SEBI Settlement Fees (one-off) | 670 | 1,432 | +114% | 84 | — | — |
| Dividend per Share (₹) | 35 | 35 | Flat | — | — | — |
| Contribution to Exchequer (₹ Cr) | — | 59,186 | — | — | — | — |
* Quarterly EPS not annualised. * Normalised excludes SEBI settlement fees & discontinued ops impact. Source: NSE Q4 FY26 & FY26 Investor Presentation, May 5, 2026.
Why FY26 reported PAT fell ₹1,886 Cr — the full breakdown:
SEBI settlement fees (after-tax impact): −₹556 Cr | Discontinued operations income collapse: −₹459 Cr | F&O volume impact: −₹420 Cr | Higher costs (tech, CSR, Labour Code): −₹430 Cr | Lower income tax benefit: +₹153 Cr (partial offset) | Lower associate profit: −₹21 Cr. On a normalised basis, the core exchange business delivered operating EBITDA margins of ~76% — a business fully intact.
Annual Revenue & PAT — FY23 to FY26 Actuals (₹ Cr)
Multi-year performance — FY26 PAT dip was regulatory, not structural
Annual EBITDA & PAT Margin Trend (%)
Reported vs normalised margin — the real story
UnlistedZone Take
Post-Results View — Has the NSE Thesis Changed?
Thesis status: Intact and strengthening. The FY26 PAT decline was overwhelmingly driven by SEBI settlement one-offs, discontinued income collapse, and a temporary F&O volume dip — not by any structural deterioration. Q4 FY26's 32% revenue and 30% EBITDA growth confirms the business has recovered. The thesis — India's dominant exchange, irreplaceable market infrastructure, pre-IPO — is stronger today than it was 6 months ago.
What the full year tells us: FY26 was a "cleanup year" for NSE — settlement provisions, one-time Labour Code charges, discontinued ops reset. FY27 starts with none of these headwinds. If volumes hold at Q4 levels and SEBI settles the co-location matter (which seems imminent), FY27 PAT could see a meaningful step-up. Normalised operating margins of ~76% show the core business never broke.
For existing holders: Hold comfortably. The DRHP filing in June 2026 is the next major catalyst. The ₹35/share dividend (₹10 special + ₹25 regular) is a meaningful cash yield while waiting for listing. Price has already re-rated post-results to ₹2,000–2,050 in unlisted markets (+10% post results). No reason to trim ahead of what could be the most awaited Indian IPO in a decade.
For new investors: At ~₹2,000–2,050 (market cap ~₹4.95–5.05 L Cr), NSE trades at ~48x reported FY26 EPS of ₹41.62. On normalised FY27 earnings — where one-offs reverse and volume recovery continues — the multiple looks far more reasonable. The catch: SEBI settlement final approval and DRHP clearance are binary events. Entry closer to ₹1,850–1,900 offers a better margin of safety if unlisted markets correct on any delay.