NSE Q2 hit from SEBI settlement provision

NSE recognised Rs 1,297 crore provision in Q2 towards SEBI settlement fees, which pulled reported profitability well below the quarter that preceded it.

NSE reported Q2 FY26 consolidated results that were materially impacted by a one-off SEBI settlement provision. The reported net profit for Q2 FY26 was Rs 2,098 crore, down 33% year on year and down 28% quarter on quarter, though net profit excluding the SEBI provision was Rs 3,396 crore, up 8% year on year and up 16% sequentially.

During the quarter, NSE recognised a provision of Rs 1,297 crore, including interest, towards the settlement applications that NSE had filed with SEBI under SEBI (Settlement Regulations) 2018 with respect to colocation and dark fibre matters.

Consolidated total income was Rs 4,160 crore in Q2 FY26, down 17% year on year from Rs 5,023 crore and down 13% sequentially from Rs 4,798 crore in Q1 FY26. Revenue from operations was Rs 3,677 crore, down 18% year on year and down 9% quarter on quarter.

Reported operating EBITDA stood at Rs 1,484 crore in Q2 FY26, down 56% year on year and down 53% quarter on quarter. Excluding the SEBI provision, normalised operating EBITDA was Rs 2,782 crore, down 17% year on year and down 11% sequentially. The normalised operating margin was 76% in Q2 FY26 as against 74% in Q2 FY25 and 78% in Q1 FY26.

Profit before tax from continuing operations was Rs 3,038 crore in Q2 FY26, down 19% year on year and down 20% sequentially. Normalised PBT, which strips out the one-offs, stood at Rs 3,138 crore, down 20% year on year and down 15% sequentially.

Total reported expenditure was Rs 2,354 crore in Q2 FY26, up 36% year on year and up 124% sequentially. Excluding the SEBI settlement fees, total expenditure was Rs 1,056 crore, broadly flat compared with Rs 1,053 crore in Q1 FY26. Key line items in Q2 FY26 were employee costs of Rs 186 crore (down 4% YoY), regulatory fees of Rs 195 crore (down 35% YoY), technology expenses of Rs 315 crore (up 40% YoY) and other expenses (ex-provision) of Rs 514 crore (down 53% YoY).

The consolidated revenue from transaction charges for Q2FY26 was Rs 2,785 crore, a decline of 12% QoQ due to reduction in volumes across cash market and derivatives segments. Cash market ADTV was Rs 95,705 crore (down 12% QoQ), equity futures ADTV was Rs 1,41,042 crore (down 16% QoQ) and equity options premium value ADTV was Rs 46,442 crore (down 16% QoQ). On the positive side, the exchange reported broad market leadership metrics and continued high market share in derivatives.

For H1 FY26 the exchanges contribution to the exchequer totalled Rs 28,308 crore, driven largely by transaction taxes. Transaction charges and market activity remain cyclical and are sensitive to macro and liquidity conditions.

National Stock Exchange of India is Indias largest exchange by turnover and a global leader in derivatives contracts. NSE operates an integrated business model across listings, trading, clearing, indices, data and technology, and remains a dominant market infrastructure player with a high share of Indias cash and derivatives activity.

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