NSE's New Product Launches To Drive Volume Growth, Says Motilal Oswal Post Q1 Results

From Sep-25, NSE’s Nifty expiry will shift to Tuesday from Thursday. According to the brokerage's estimates, this change could lead to a 300-400 bp increase in market share on a premium turnover basis, potentially offsetting the near-term weakness in volumes.

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Motilal Oswal Report

NSE reported operating revenue of Rs 40.3 billion in Q1 FY26, down 11% YoY, mainly due to a 14% YoY decline in transaction charges.

Total expenditure rose 11% YoY to Rs 9 billion, supported by a 34%/5% YoY growth in employee expenses/other expenses. Ebitda declined 15% YoY to Rs 31.3 billion in Q1 FY26, reflecting an Ebitda margin of 77.6% vs 81.9% in Q1 FY25 and 74.3% in Q4 FY25.

Reported PAT for the quarter stood at Rs 29.3 billion, an increase of 14% YoY and 10% QoQ. YoY growth was driven by higher other income and no contribution to SGF, despite a weaker top line.

Looking ahead, growth is expected to be driven by the scaling up of electricity derivatives and introduction of futures contracts across other commodities, potential launch of VIX futures based on market feedback, and continued product development for NSE’s international exchange. 

From Sep’25, NSE’s Nifty expiry will shift to Tuesday from Thursday. According to our estimates, this change could lead to a 300-400 bp increase in market share on a premium turnover basis, potentially offsetting the near-term weakness in volumes.

Transaction revenue is projected to post an 11% CAGR over FY25-27. Overall, we expect a 6%/7%/11% CAGR in revenues/Ebitda/reported PAT over FY25-27.

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