2026-06-19 05:33:57 pm | Source: SMC Global Securities
Comment on NSE IPO by Ajay Garg, Director & CEO, SMC Global Securities
Below the Comment on NSE IPO by Ajay Garg, Director & CEO, SMC Global Securities
The NSE IPO offers investors exposure to India's largest exchange and one of India's key market infrastructure institutions. NSE's key strengths are its leadership position across cash and derivatives markets, strong liquidity and a business model that benefits from scale. In FY26, NSE reported revenue of Rs16,601 crore and profit after tax of Rs10,302 crore, highlighting the scale and profitability of its operations.
However, investors should also evaluate certain risks. A significant portion of NSE's revenue is linked to derivatives trading activity, with options accounting for around 60% of operating revenue in FY26. This makes the business sensitive to regulatory changes in the F&O segment.
Given its systemic importance, the exchange operates under close regulatory oversight, and policy measures affecting market structure or trading activity can influence growth prospects. Investors may also monitor the outcome of pending regulatory and legal matters disclosed in the DRHP, including the proposed settlement of the co-location and dark fibre cases, as well as ongoing litigation, from a governance and compliance perspective.
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