NSE Records Strong Profits Despite Market Volatility in Q3 FY25

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India’s leading stock exchange, the National Stock Exchange (NSE), delivered a strong performance in Q3 FY25, continuing its growth trajectory despite some slowdown in trading volumes.

Here’s a quick snapshot of key facts of India’s largest real-time financial ecosystem -

Here’s a simplified breakdown of the key highlights from NSE’s Q3FY25 earnings report.

Solid Profit Growth

NSE reported a profit after tax (PAT) of ₹3,834 crore for Q3 FY25, up a whopping 94% year-on-year (YoY) and 22% quarter-on-quarter (QoQ).

This growth was driven not just by its core operations, but also by a one-time gain of ₹1,155 crore from the sale of an investment in an associate company.

Even when adjusted for such one-time items, NSE’s normalized profit before tax rose 22% YoY, showing that its fundamental business remains robust.

Revenue Trends

Total consolidated income stood at ₹4,807 crore, a 21% YoY increase, though it dipped 4% from the previous quarter due to a slowdown in trading activity.

Revenue from operations, which forms the bulk of this income, saw a 24% YoY jump, mainly led by transaction charges, listing services, and data-related revenues.

Transaction charges alone contributed ₹3,445 crore in Q3, forming about 72% of total operating income. This segment grew 22% YoY but declined slightly on a quarterly basis, primarily due to reduced volumes in the cash and derivatives markets.

Market Activity Snapshot

The number of trading days during the quarter was 62, slightly lower than the previous quarter. During Q3 FY25, average daily turnover dropped across most segments:

Cash market volumes declined 19% QoQ but grew 29% YoY

Equity futures were down 15% QoQ but up 31% YoY

Equity options (based on premium turnover) also dipped 7% QoQ but saw 8% YoY growth

Despite these dips, NSE continues to retain a dominant market share across asset classes, with a near 100% share in equity derivatives and over 87% in the cash market.

Cost Control and Efficiency

NSE did a great job managing its expenses. Total expenses fell 17% QoQ and 21% YoY. The drop was mainly due to lower regulatory fees and the absence of any settlement penalties (unlike the previous quarter).

As a result, operating EBITDA margin improved to 78%, and PAT margins hit 64%, both marking significant improvements over the previous year.

Broader Business Footprint

Beyond trading, NSE continues to strengthen its presence in listing services, data distribution, and technology infrastructure. It reported strong growth in:

Listing services (up 60% YoY)

Data centre & connectivity (up 33% YoY)

Clearing & settlement services (up 83% YoY)

The exchange also maintained a healthy balance sheet, with an annualized return on equity (RoE) of 46% and a book value per share of ₹111.87.

Final Thoughts

NSE’s Q3 FY25 numbers reflect a strong financial foundation, even in a period of softer market activity. The exchange’s ability to grow profitably while diversifying its revenue sources shows its long-term strength. With India’s capital markets deepening and more retail investors entering the scene, NSE appears well-positioned to lead the next phase of financial market evolution.

Disclaimer: This article simplifies and summarizes NSE’s Q3FY25 performance. Investors are advised to review the full earnings presentation and consult with financial advisors before making investment decisions.