NSE Q3 Results: PAT Soars 94% YoY, Sebi F&O Rules Impact Growth

NSE Q3 Results: PAT Soars 94% YoY, But Sebi's F&O Rules Impact Growth

India's leading stock exchange, the National Stock Exchange (NSE), reported a robust financial performance for the third quarter of FY25, with a 94% year-on-year (YoY) rise in profit. However, stricter Securities and Exchange Board of India (Sebi) regulations on Futures & Options (F&O) trading and declining market volumes resulted in only a 22% quarter-on-quarter (QoQ) PAT growth.

Key Financial Highlights of NSE Q3FY25

• Consolidated PAT: Rs 3,834 crore, up 94% YoY but only 22% QoQ.
• Revenue from operations: Rs 4,349 crore, a 24% YoY rise but a 4% QoQ decline.
• Operating EBITDA: Increased 50% YoY to Rs 3,398 crore.
• Total expenses: Decreased 21% YoY, boosting profitability.

Impact of Market Trends and Sebi's Regulations

Indian stock markets have experienced a bearish phase over the last three to four months, resulting in lower trading volumes. Additionally, Sebi’s stricter norms in the F&O segment negatively impacted NSE’s revenue streams.

• Transaction charges revenue: Rs 3,445 crore, down 4% QoQ.
• Cash market Average Daily Traded Volume (ADTV): Rs 1.04 lakh crore, down 19% QoQ.
• Equity futures ADTV: Rs 1.71 lakh crore, down 15% QoQ.

Performance in 9MFY25

For the first nine months of FY25 (April-December 2024), NSE’s total income and net profit showed strong growth:

• Total income: Rs 14,780 crore, up 30% YoY.
• Net profit: Rs 9,538 crore, up 64% YoY.
• Earnings per share (EPS): Rs 38.54, up from Rs 23.51 in 9MFY24, considering the 4:1 bonus share issuance.

Outlook for NSE and Stock Market Investors

The strong YoY profit growth suggests NSE's resilience in a challenging market environment. However, the bearish stock market trend and regulatory interventions are expected to impact future performance. Investors should monitor market sentiment, Sebi regulations, and trading volume trends to assess NSE’s long-term growth potential.

Disclaimer: The information in this article is for educational purposes only and should not be considered financial advice. Investing in stock markets involves risks. Readers should conduct their own research or consult a professional financial advisor before making any investment decisions.

Categories: Indian stock exchange, NSE financial results, stock market performance