India’s leading stock exchange, National Stock Exchange (NSE), has reported a sharp decline in its consolidated financial performance for the second quarter of FY26. According to its latest earnings report released on November 4, 2025, NSE’s consolidated profit after tax (PAT) fell 33% year-on-year to ₹2,098 crore, compared to ₹3,137 crore in the same quarter last year. The revenue from operations also witnessed an 18% drop, settling at ₹3,677 crore against ₹4,510 crore in Q2 FY25.
The exchange attributed the decline to higher regulatory provisions and subdued trading volumes, particularly in the equity cash segment. Despite the year-on-year fall, NSE noted a sequential improvement in operational metrics, with a 16% rise in PAT compared to Q1 FY26.
🧠 NSE Q2 FY26 Financial Summary
| Financial Metric | Q2 FY26 | Q2 FY25 | YoY Change (%) |
|---|---|---|---|
| Consolidated PAT | ₹2,098 crore | ₹3,137 crore | -33% |
| Revenue from Operations | ₹3,677 crore | ₹4,510 crore | -18% |
| EBITDA | ₹2,950 crore | ₹3,820 crore | -22.8% |
| Operating Margin | 80.2% | 84.7% | -4.5% pts |
The drop in profitability reflects the impact of regulatory provisioning and market volatility.
📊 Segment-Wise Performance Breakdown
| Segment | Q2 FY26 Revenue Contribution | Key Observations |
|---|---|---|
| Equity Cash | 42% | Decline in average daily turnover |
| Equity Derivatives | 38% | Stable volumes, slight uptick in options |
| Currency Derivatives | 8% | Marginal growth due to rupee volatility |
| Debt Segment | 4% | Flat performance |
| Other Services | 8% | Includes data, co-location, and listing fees |
Equity cash segment underperformed due to reduced retail participation and macroeconomic headwinds.
📈 Operational Highlights and Strategic Updates
| Initiative | Status Update |
|---|---|
| Regulatory Provisioning | ₹1,200 crore set aside for compliance and penalties |
| Technology Investments | ₹350 crore allocated for infrastructure upgrades |
| New Product Launches | Index futures and ESG-linked instruments |
| Global Expansion | Talks underway for cross-border listings |
| Investor Education | 12 new regional centers launched |
NSE continues to invest in long-term growth despite short-term financial pressures.
🗣️ Market Reactions and Analyst Commentary
| Stakeholder | Commentary Summary |
|---|---|
| Institutional Investors | “Regulatory provisioning was expected, but revenue dip is concerning.” |
| Retail Traders | “Lower volumes reflect cautious sentiment.” |
| Financial Analysts | “Sequential growth offers some optimism.” |
| Regulatory Experts | “NSE must enhance transparency around provisioning.” |
The market response has been mixed, with cautious optimism about sequential recovery.
📌 Conclusion
NSE’s Q2 FY26 results reflect a challenging quarter marked by regulatory headwinds and declining trading volumes. While the 33% drop in PAT and 18% revenue decline signal short-term pressure, the exchange’s strategic investments and operational resilience suggest a focus on long-term stability. As India’s financial markets evolve, NSE’s ability to adapt and innovate will be critical in maintaining its leadership position.
Disclaimer: This article is based on publicly available financial disclosures, media reports, and analyst commentary. It is intended for informational and editorial purposes only and does not constitute financial advice or investment recommendations.
