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Cost efficiency boosts PAT despite a decline in volumes

* NSE reported operating revenue of INR43.5b, reflecting 24% YoY growth. For 9MFY25, operating revenue grew 33% YoY to INR133.7b.

* The revenue mix was dominated by transaction charges (72%), which grew 22% YoY. Income from data centre & connectivity (6%) grew 33% YoY, followed by operating investment income (5%), which grew 3% YoY. Listing services (2%) and clearing & settlement services (2%) were the fastestgrowing segments, growing 60%/83% YoY, respectively.

* Income from transaction charges declined sequentially to INR34.2b (-4% QoQ), driven by a 19%/23% decline in charges from equity futures/cash market. Charges from equity options grew 2% QoQ, despite a 7% QoQ decline in premium ADTO, likely due to the True to Label implementation.

* Total expenditure at INR8.8b (+26% YoY) declined 45% QoQ, largely due to the impact of SEBI settlement fees in 2QFY25. Employee expenses grew 39% YoY to INR1.6b (-16% QoQ), technology expenses grew 79% YoY to INR2.7 (+20% QoQ), and regulatory charges declined 5% YoY to INR2.4b (- 20% YoY).

* SGF contribution was reported at INR680m (-88% YoY) vs a reversal of INR4.3b in 2QFY25.

* Operational efficiency, along with profit on the sale of investments to the tune of INR11.6b, resulted in 90% YoY/40% QoQ growth in PAT to INR38.2b. Excluding the one-off gain, normalized PAT grew 50% YoY/7% QoQ to INR29.2b

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