NSE Q4 Results: Profit Falls 31%, Exchange Discontinues Settlement Fund Contribution

The National Stock Exchange of India Ltd. reported a 31% quarter-on-quarter decline in its bottom line for the March quarter, mainly due to a one-time gain of Rs 1,155 crore in the December quarter, even as revenue fell 13% in the same period.

The company, which is eyeing an initial public offering, also saw its operating earnings before interest, taxes, depreciation and amortisation fall 18% on the quarter to Rs 2,799 crore. The margin of the operating Ebitda fell to 74% from the previous quarter's 78%.

The consolidated revenue from transaction charges for the fourth quarter stood at Rs 2,939 crore, indicating a sequential decline of 15%.

The exchange, in its press release, attributed the topline decline to mainly a reduction in volumes across cash market and derivatives segment.

To put things in perspective, the Indian market regulator, SEBI, in a bid to curb excessive speculation in equity derivatives, proposed new measures in July 2024, including increasing the lot size and mandating the upfront collection of option premiums from buyers by trading members and clearing members. This has also been coupled by a prolonged market correction.

Due to a fall in volumes, the exchange's trading revenue fell 14% to Rs 3,426 crore while clearing revenue fell 34% to Rs 421 crore on a sequential basis.

While revenue and Ebitda has fallen on the back of declining volumes, NSE's profit decline is further aggravated due to a one-time gain of Rs 1,155 crore in the third quarter, which came as a result of the sale of NSE's entire 20.3% stake in Protean e-Gov Technologies Ltd.

The exchange has also recommended a final dividend of Rs 35 per share for the fiscal 2025. This includes a special one-time dividend of Rs 11.46 for every share.

NSE Q4 Highlights (Consolidated, QoQ)

• Revenue fell 13% to Rs 3,771 crore from Rs 4,349 crore.

• Operating Ebitda fell 18% to Rs 2,799 crore from Rs 3,398 crore.

• Operating Ebitda margin fell to 74% from 78%.

• Net profit fell 31% to Rs 2,650 crore from Rs 3,834 crore.

In April, NSE Academy sold its skill development and training platform TalentSprint to Accenture for Rs 245 crore. "The impact of the said transaction will be reflected in the financial results of the first quarter of FY2026," NSE said.

With respect to the core settlement guarantee fund, NSE said that as of December 2024, the desired corpus of core SGF had reached the stipulated level which is required to be maintained by NSE Clearing.

Accordingly, the company approved discontinuation of the voluntary 2% contribution of the transaction charges to the core SGF starting January 1, 2025. For the fiscal 2025, NSE has recognised total expense of Rs 234 crore towards contribution to core SGF, which includes contribution of Rs 218 crore to NSE Clearing's core SGF.

Last quarter, the NSE had claimed that NSE Clearing failed to meet SEBI-mandated liquidity requirements for the core SGF, due to non-payment by BSE. The NSE arm had reported a shortfall of Rs 177 crore in its liquidity, a deficit it said was primarily due to the non-receipt of Rs 312 crore in dues from BSE.