The National Stock Exchange of India (NSE), the country’s biggest equity exchange, has announced its Q4 and FY25 results. While the exchange has seen a small year-on-year growth in net profit, it faced revenue pressure due to decline in volumes—especially in derivatives and cash segments. Let’s dig deeper into NSE Q4 FY25 results.
📊 NSE Q4 FY25 Results – Highlights
- Net Profit: INR 2,650 crore, up 7% YoY from INR 2,487 crore in Q4FY24.
- Total Revenue from Operations: INR 3,771 crore, down 18% YoY from INR 4,625 crore.
- Sequential Performance: Net profit fell 31% QoQ from INR 3,834 crore in Q3 FY25 due to a high base created by a INR 1,155 crore one-time gain last quarter (from sale of 20.3% stake in Protean e-Gov Technologies).
- Total Income (including other income): INR 4,397 crore in Q4 FY25, down 13% from INR 5,080 crore in Q4FY24.
The numbers show the exchange’s ability to maintain profitability despite sequential decline in volumes and regulatory challenges.
💼 NSE Q4 FY25 – Operational Metrics Under Pressure
- Operating EBITDA: INR 2,799 crore, down 8% YoY and 18% QoQ.
- EBITDA Margin: Compressed to 74%, from 78% in Q3 FY25, though better than 66% in Q4FY24.
- Expenses: Up 10% YoY to INR 1,119 crore, with 25% increase in tech spend (INR 304 crore).
The biggest contributor to the decline in topline was transaction charges, which fell 22% YoY and 15% QoQ to INR 2,939 crore. This segment constitutes 67% of NSE’s operational revenue.
Regulatory Headwinds and Market Correction
A substantial part of the revenue drop stems from a volume contraction across both cash and derivatives markets. The impact of SEBI’s 2024 regulatory measures, including increased derivative lot sizes and mandatory upfront premium collection, combined with a prolonged market correction, hurt trading activity. On a sequential basis:
- Trading Revenue: Down 14% to INR 3,426 crore.
- Clearing Revenue: Plunged 34% to INR 421 crore.
📆 NSE FY25 Performance: Record Profit, Dividend Bonanza
Despite the Q4 drag, FY25 was a stellar year overall:
- Total Income: INR 19,177 crore, up 17% YoY.
- Consolidated Net Profit: INR 12,188 crore, up 47% YoY.
- Normalized Profit Before Tax (excluding one-offs like SEBI settlement and SGF contributions): INR 14,895 crore, up 17% YoY.
The NSE board recommended a 3,500% dividend—INR 35 per share—including a special dividend of INR 11.46, subject to shareholder approval.
💰 Settlement Guarantee Fund (SGF) Contributions Discontinued
NSE confirmed that as of December 2024, the core SGF corpus met SEBI-mandated levels. As a result, the exchange discontinued the voluntary 2% contribution from transaction charges effective 1 January 2025. Total FY25 SGF-related expense stood at INR 234 crore, with INR 218 crore allocated to NSE Clearing’s core SGF.
INR 59,798 Crore Contribution to Exchequer
A standout figure was the NSE’s contribution to government revenues:
- Securities/Commodities Transaction Tax (STT/CTT): INR 48,439 crore.
- Stamp Duty: INR 3,772 crore.
- SEBI Fees: INR 1,804 crore.
- Income Tax: INR 3,831 crore.
- GST: INR 1,952 crore.
Notably, 58% of STT/CTT collections came from the cash segment, while 42% was from derivatives.
🧠 Strategic Moves & IPO Buzz
In a notable strategic development, NSE Academy sold its edtech arm TalentSprint to Accenture for INR 245 crore in April. This transaction’s financial impact will reflect in Q1FY26. Meanwhile, NSE’s long-anticipated IPO continues to remain under regulatory review, with SEBI reportedly engaged in back-and-forth discussions on key structural matters.
📌 Outlook
While the NSE Q4 FY25 figures hint at a slowdown, largely tied to systemic and regulatory factors, the robust full-year performance reaffirms NSE’s dominant market position and operational efficiency. Investor sentiment remains buoyed by the strong dividend payout, profitability metrics, and prudent capital allocation.
The exchange’s focus on technology investments and market infrastructure, coupled with its adherence to regulatory compliance and commitment to governance, keeps it well-positioned—both for a potential listing and for navigating India’s evolving capital markets landscape. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.