NSE’s September-quarter profit rose 23% to Rs 2,578 crore, while brokerages cited its dominant market position and potential reforms as reasons for optimism despite regulatory and technology-cost risks.
Brokerages stayed positive on the National Stock Exchange after its September quarter numbers, arguing that the market operator’s dominant position, broader income streams and possible rule changes could keep growth on track.
NSE said net profit rose 23% from a year earlier to Rs 2,578 crore in the quarter, while revenue increased 11% to Rs 4,067 crore. Earnings before interest, tax, depreciation and amortisation more than doubled to Rs 3,079 crore, lifting the margin to 76% from 40% a year earlier. The figures underline how the exchange continues to benefit from strong trading volumes and a lean cost base.
Kotak Institutional Equities began coverage with a Buy rating and a target price of Rs 2,200, pointing to NSE’s grip on the cash equity market and its large share of index options premium turnover. The brokerage expects cash equities, data services, index licensing and colocation services to support a wider revenue mix, while warning that regulation around derivatives and higher technology spending could temper the upside.
Jefferies kept its Buy view and lifted its target to Rs 2,125 from Rs 2,085, citing strength in cash equities, commodity options and non-transaction income. It also sees room for gains from reforms in securities lending and borrowing, as well as a better share of mutual fund order flow, although transaction taxes and technology costs remain risks. B&K Securities also maintained a Buy call with a target of Rs 2,100, saying changes to the closing auction session, a recovery in options volumes, a strong pipeline of initial public offerings and firmer colocation demand should support activity. Emkay Global, which reiterated Buy with a Rs 2,050 target, said the closing auction session amendments due to take effect in December 2026 could lift cash market participation, while easing exchange-traded derivative margins and possible securities lending reforms may add to growth. The brokerage also highlighted NSE’s proposed corporate bond index futures launch, which is still awaiting approval from the Reserve Bank of India.
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