NSE Q2 profit drops to ₹2,098 crore after provisioning for Sebi settlements

The National Stock Exchange (NSE) reported a consolidated net profit of Rs 2,098 crore for the quarter ended September (Q2FY26), down from Rs 3,137 crore in the same period last year. The decline was largely on account of a one-time provision made towards settlement applications filed with the Securities and Exchange Board of India (Sebi).

 

NSE has recognised a provision of Rs 1,297 crore, including interest, related to proposed settlements in the colocation and dark fibre cases. The exchange said Sebi’s response to its two settlement applications — filed with a cumulative amount of Rs 1,387 crore — is awaited, and the outcome remains uncertain. 

 

The provision is in addition to the Rs 100-crore penalty imposed by the Securities Appellate Tribunal (SAT) in the colocation matter — already adjusted against the amount deposited by NSE with Sebi in FY23.

 

Consolidated revenue from operations stood at Rs 3,676.8 crore in Q2FY26, a decline of nearly 18 per cent year-on-year (Y-o-Y). Transaction charges, which account for the bulk of the exchange’s income, fell 22 per cent to Rs 2,785 crore due to lower trading volumes in both cash and derivatives segments.

 

NSE’s market share also slipped by around 3 percentage points in equity options and 1.5 percentage points in the cash segment sequentially.

 

The exchange’s total contribution to the exchequer in the first half of FY26 was Rs 28,308 crore, including Rs 23,451 crore in securities and commodities transaction tax and Rs 496 crore in Sebi fees.

 

The pending settlement applications are seen as a key step towards regulatory clearance for NSE’s long-pending initial public offering (IPO). As of September-end, the exchange had 163,478 retail shareholders, accounting for over 12 per cent of its equity.

 

Separately, NSE has received Sebi’s no-objection for the sale of its KYC Registration Agency business, operated by its step-down subsidiary NSE Data & Analytics. The exchange had approved a business transfer agreement with CAMS Investor Services in July and received Sebi’s clearance on October 1.