NSE's Q2 FY25: How the Stock Exchange is Dominating Markets Like Never Before
NSE Profits Skyrocket – Net Margins Hit an Unbelievable 62% in Q2 FY25!
Revenue and Profit Growth
The National Stock Exchange (NSE) of India saw a notable increase in revenue and profit in Q2 FY25, reflecting a robust financial performance. Consolidated total income grew by 25 per cent year-on-year (YoY) to reach Rss 5,023 crore, supported by multiple revenue streams such as clearing services, data services, and connectivity fees. Net profit also rose sharply, up by 57 per cent YoY to Rs 3,137 crore, achieving a net profit margin of 62 per cent.
Earnings Per Share and Half-Year Overview
NSE's earnings per share (EPS) on a consolidated basis increased to Rs 12.68 in Q2 FY25 from Rs 8.08 in Q2 FY24, factoring in a 4:1 bonus share issuance. For the first half of FY25, NSE’s consolidated income totaled Rs 9,974 crore, with net profit at Rs 5,704 crore, representing consistent growth from Rs 15.52 in H1 FY24 to Rs 23.05 in H1 FY25 after adjusting for the bonus issuance.
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Standalone Performance and Operating Income
On a standalone basis, NSE's total income reached Rs 5,297 crore in Q2 FY25, marking a 35 per cent YoY growth. Operating revenue on a standalone basis grew by 19 per cent YoY to Rs 4,042 crore, reflecting the strength of NSE's core activities. Standalone net profit stood at Rs 2,954 crore, up from Rs 1,804 crore in the same quarter last year, with a strong net profit margin of 56 per cent.
Trading Volumes and Segment Highlights
NSE’s trading volumes surged in Q2 FY25, with the cash market averaging daily traded volumes (ADTV) of Rs 1,29,194 crore (66 per cent YoY increase) and equity futures ADTV reaching Rs 21,547 crore (64 per cent YoY increase). Equity options also saw a premium volume ADTV boost to Rs 65,648 crore, up 8 per cent YoY. NSE remains the world’s largest derivatives exchange by trading volume for the fifth consecutive year.
Contributions to Exchequer and Regulatory Fees
In H1 FY25, NSE contributed Rs 30,130 crore to the exchequer through various taxes, including Rs 24,755 crore from STT and CTT, and Rs 2,099 crore in stamp duty. Regulatory expenses in Q2 FY25 amounted to Rs 1,546 crore, covering SEBI fees, settlement fees, and contributions to the Investor Protection Fund Trust.
Market Share and Volume Growth
NSE retained a strong market share, leading across various segments. Cash markets grew by 69 per cent, equity futures by 66 per cent, and premium equity options by 20 per cent. Currency futures and options volumes declined, though NSE still holds 100 per cent market share in currency options.