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The National Stock Exchange (NSE) reported a significant surge in its consolidated net profit for the September quarter, marking a robust performance amidst a dynamic market environment. The exchange recorded a 57% year-on-year jump in net profit, reaching Rs 3,137 crore, driven by a combination of increased revenue and strategic financial management. This positive performance was achieved despite a rise in expenses, which were partly offset by a reduction in the additional contribution to the core settlement guarantee fund (SGF).
NSE's consolidated revenue also demonstrated healthy growth, climbing to Rs 5,023 crore for the reporting quarter, representing a 25% year-on-year increase. This revenue growth stemmed from various sources, including clearing and listing services, data center and connectivity charges, as well as index and data services. The exchange's standalone performance mirrored this positive trend, with a net profit of Rs 2,954 crore in the second quarter of fiscal year 2025, significantly higher than the Rs 1,804 crore achieved in the corresponding period a year ago. The exchange's total income for the quarter stood at Rs 5,297 crore, marking a 35% year-on-year growth.
While NSE experienced an increase in expenses, reaching nearly Rs 1,730 crore, this was partially attributed to the payment of Rs 643 crore in settlement fees to the Securities and Exchange Board of India (SEBI) related to a trading access point matter. Notably, NSE managed to reduce expenses by reversing a provision for additional voluntary contribution towards the core SGF. Earlier in the year, SEBI had advised NSE and its subsidiary NSE Clearing (NCL) to raise the core SGF for the subsidiary's F&O segment to Rs 10,500 crore, leading to a provision of Rs 500 crore by NSE. However, a subsequent assessment by NCL revealed that existing funds and reserves were sufficient to meet SEBI's requirements, eliminating the need for further contributions from NSE. As a result, NSE reversed the earlier provision, contributing to the reduction in expenses.
The SGF plays a crucial role in the stock exchange ecosystem, serving as a safeguard to ensure the settlement of trades even in the event of a clearing member's default. This fund acts as a buffer, protecting the integrity of the market and ensuring smooth operations. NSE's decision to reverse the additional voluntary contribution reflects a prudent financial approach and underscores the exchange's commitment to maintaining financial stability within its operations.
Looking at the bigger picture, NSE's overall performance for the first half of fiscal year 2025 remained strong, with total income reaching Rs 9,974 crore, representing a 35% year-on-year increase. The consolidated net profit for the six-month period also recorded a notable 48% year-on-year growth, reaching Rs 5,704 crore. This positive trajectory reinforces NSE's position as a key player in the Indian stock market, demonstrating its capacity for sustained growth and financial strength.
The exchange's performance is further highlighted by the substantial trading volumes witnessed in the September quarter. Cash markets recorded an average daily traded volume of Rs 1,29,194 crore, while equity futures and options (premium value) reached Rs 2,01,547 crore and Rs 65,648 crore, respectively. These figures underscore the vibrant activity within the Indian capital markets, indicating investor confidence and continued interest in the financial sector.
NSE's contribution to the exchequer in the first half of fiscal year 2025 was significant, totaling Rs 30,130 crore. This included a substantial amount of securities transaction tax (STT)/commodities transaction tax (CTT) of Rs 24,755 crore, along with stamp duty, SEBI fees, income tax, and GST. This contribution reflects NSE's role as a key contributor to the Indian economy and its commitment to fulfilling its regulatory obligations.
Source: NSE reports 57 per cent jump in September quarter profit to Rs 3,137 crore