Company Update : NSE Ltd by Motilal Oswal Financial Services Ltd
Volume decline hits revenue; settlement fees impacts PAT
* NSE reported operating revenue of INR36.8b, reflecting a decline of 18% YoY/9% QoQ. For 1HFY26, revenue declined 15% YoY.
* Revenue mix was dominated by transaction charges (67% of revenue), which declined 22% YoY owing to a 12%/16%/16% decline in cash/futures/ option premium ADTO.
* Data center charges (7% of revenue) grew 6% YoY, data feed & terminal services (3% of revenue) grew 11% YoY, while listing services (2% of revenue) grew 10% YoY. Operating investment income (5% of revenue) declined 16% YoY.
* The dip in transaction charges to INR27.6b for 2Q was owing to a 27%/ 31%/20% YoY decline in transaction charges from cash/futures/options.
* Total expenditure rose 38% YoY to INR21.9b due to provisions made for the SEBI settlement fee for INR13b, while employee expenses/regulatory fees declined 4%/35% YoY.
* EBITDA at INR14.8b dipped 49% YoY/53% QoQ, reflecting an EBITDA margin of 40.4% (64.7% in 2QFY25). Excluding the impact of the settlement fee, EBITDA was at INR27.8b with an EBITDA margin of 76% for 2QYF26.
* NSE reported an exceptional gain of INR12b on the sale of a stake in NSDL.
* PAT for the quarter came in at INR21b, down 33% YoY/28% QoQ. Excluding the impact of the settlement fee, PAT was at INR34b. For 1HFY26, reported PAT declined 12% YoY.
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SEBI Registration number is INH000000412
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