The National Stock Exchange (NSE) has reported a slowdown in its core operating performance before its upcoming initial public offering (IPO). According to its Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI), the exchange’s total revenue from operations decreased to Rs 16,601.3 crore in FY26 from Rs 17,140.67 crore in FY25, marking a decline of over 3 per cent year-on-year.
Revenue from transaction charges, the NSE’s primary source of operating income, fell by 4 per cent to Rs 13,057.01 crore in FY26, down from Rs 13,635.76 crore in the previous financial year. Income from clearing and settlement services also saw a significant drop, declining by 21.8 per cent to Rs 251.45 crore in FY26 from Rs 321.34 crore in FY25.
Despite these declines, the exchange experienced growth in revenue from listing services, with income from this segment increasing by 10 per cent year-on-year to Rs 352.43 crore in FY26, up from Rs 313.82 crore in the previous fiscal. The DRHP also indicated softer trading activity across key market segments, pointing to weaknesses in the exchange’s core business.
Average daily trading volume (ADTV) in the cash market decreased by 6.59 per cent to Rs 1,05,516.66 crore during FY26, compared to Rs 1,12,963.24 crore in FY25. The derivatives segment also witnessed lower activity, with equity futures ADTV dropping by 14.23 per cent year-on-year to Rs 1,59,443.21 crore from Rs 1,85,901.44 crore. Similarly, equity options ADTV, measured in premium value terms, fell by 7.66 per cent to Rs 57,661.75 crore in FY26 from Rs 62,448.66 crore a year earlier.
In its filing, the NSE warned that sustained declines in trading volumes or transaction values could lead to reduced demand for its products and services, potentially impacting its growth prospects, financial condition, business performance, and cash flows.
