Event: 3 November 2026 · Verified and explained: 4 November 2026.
An exchange earns money from the activity flowing through its systems, but its reported profit can also be shaped by expenses and investment gains that do not repeat. NSE’s Q2 FY27 presentation illustrates why a headline profit-growth number should be followed by a bridge explaining how it was produced.
For the quarter ended 30 September 2026, NSE reported consolidated PAT of ₹2,578 crore, up 23% year on year. Revenue from operations was ₹4,067 crore, up 11%, and total income was ₹4,554 crore, up 9%. These are different accounting lines, so the income and revenue figures should not be used interchangeably. [1]
The numbers with their proper labels
| Metric | Q2 FY27 | Year-on-year comparison |
|---|---|---|
| Consolidated PAT | ₹2,578 crore | +23% |
| Revenue from operations | ₹4,067 crore | +11% |
| Total income | ₹4,554 crore | +9% |
| Transaction charges | ₹3,035 crore | +9% |
| Normalised operating EBITDA | ₹3,079 crore | +11% |
| Cash-market ADTV | ₹118,377 crore | +24% |
| Options premium ADTV | ₹47,977 crore | +3% |
The same presentation shows profit down 17% from the immediately preceding quarter’s ₹3,120 crore. This does not contradict the 23% year-on-year increase: the starting periods are different. A strong annual comparison can coexist with a softer sequential quarter. Both perspectives are useful when activity and costs move unevenly through the year.
Why the prior-year base matters
Normalised operating EBITDA: comparable annual growth
₹ crore
| Label | Value (₹ crore) |
|---|---|
| Q2 FY26 normalised | 2782 |
| Q2 FY27 normalised | 3079 |
The prior-year quarter contained ₹1,297 crore of SEBI settlement fees and ₹1,201 crore of profit on the sale of an investment in associates. One reduced profit and the other increased it. Ignoring either side produces an incomplete explanation of the comparison. The company’s reconciliation should be read as a bridge, rather than selecting whichever adjustment supports the preferred narrative. [1]
NSE reports normalised operating EBITDA of ₹3,079 crore for Q2 FY27 against ₹2,782 crore in Q2 FY26, up about 11%. Normalised profit before tax from continuing operations was ₹3,425 crore against ₹3,134 crore, up about 9%. These measures help show the operating direction without claiming that every adjustment is irrelevant or that normalised earnings are automatically guaranteed future cash flows.
A 107% EBITDA increase and an 11% increase can both appear
Reported operating EBITDA rose from ₹1,484 crore to ₹3,079 crore, a 107% increase in the presentation. After the disclosed normalisation of the prior-year base, growth is about 11%. The two percentages answer different questions. The first describes the reported comparison; the second attempts to improve comparability by accounting for specified items.
An investor should understand the adjustments rather than automatically trusting the larger or smaller figure. Some costs labelled unusual can recur in different forms. Conversely, a genuine one-time expense can make underlying activity look weaker than it was. The useful discipline is to reconcile the adjustment, identify its cash consequences and keep the reported result visible alongside it.
Trading activity was mixed across products
The presentation reports Q2 cash-market average daily volume of ₹118,377 crore, up 24% year on year but down 13% from Q1. Equity-options premium average daily volume was ₹47,977 crore, up 3% year on year and down 25% sequentially. Equity-futures average daily volume was down 12% year on year. These are separate product measures, not evidence that every trading segment expanded at the same rate. [1]
Options premium turnover is also different from notional turnover. Premium is the price paid for the option, while notional relates to the exposure represented by the contract. Comparing one period’s premium turnover with another period’s notional number would create a meaningless growth rate. Always preserve the product, unit and measurement basis.
What supports an exchange’s earnings?
Transaction activity, pricing and product mix influence revenue, while technology, employee costs, regulatory charges and other expenses influence margins. An exchange also needs resilience: systems must handle high volumes reliably. A quarter of stronger trading does not eliminate operational or regulatory risk. In fact, a high-activity environment can increase the importance of capacity and control.
Transaction-charge revenue of ₹3,035 crore represented roughly two-thirds of consolidated total income in the presentation. This concentration helps explain why sustained changes in market activity can matter. But turnover and revenue need not move one-for-one: fee schedules, product mix and the nature of activity can change the conversion from volume into income. [1]
A strong business result is not a product recommendation
An investor reading NSE’s accounts should separate the exchange’s business performance from their own decision to trade more frequently. More transactions can generate exchange revenue while increasing an individual trader’s costs or losses. The company’s profitable quarter does not establish that short-term trading strategies have become easier or safer.
Similarly, this result is not a claim about the availability, listing status or valuation of a particular investment opportunity in NSE shares. Those questions require current issuer and exchange disclosures and the actual transaction terms. A financial-results article should not quietly become a solicitation for an unrelated security transaction.
The checklist worth carrying into the next quarter
- Compare revenue from operations separately from total income.
- Read both year-on-year and quarter-on-quarter movement.
- Reconcile settlement fees, investment gains and other adjustments.
- Distinguish reported EBITDA from the company’s normalised measure.
- Keep premium turnover and notional exposure in separate comparisons.
- Review product mix, system resilience and regulatory developments.
NSE’s result shows growth in annual operating measures alongside a softer sequential activity comparison. The most informative reading is the full bridge: what clients traded, what the exchange earned from that activity, which costs changed and which prior-year items distort a simple percentage. That approach turns an impressive headline into an understandable business analysis.
Questions readers ask
What did NSE report for Q2 FY27?
NSE’s official presentation reports consolidated PAT of ₹2,578 crore, revenue from operations of ₹4,067 crore and total income of ₹4,554 crore. Year-on-year growth was 23%, 11% and 9%, respectively.
Why is normalised EBITDA growth lower than reported growth?
The prior-year comparison includes a large settlement fee. The presentation’s normalised operating EBITDA adjusts for specified items, showing about 11% growth instead of the 107% reported comparison. Read the full reconciliation, including investment-sale gains.
Does higher exchange profit mean retail traders should trade more?
No. An exchange’s revenue from activity is different from a trader’s net outcome. More trading can increase costs and risk; the company result does not validate an individual trading strategy.
Check the exposure behind the label
Use MF Analyser Fund Research to compare schemes, and read the latest portfolio and benchmark disclosures. Check the date, denominator and mandate before connecting a market event to a particular fund.
Cover: AI-generated editorial illustration, not a photograph documenting this event. Hypothetical calculations are explicitly labelled. This article explains published information and arithmetic; it does not provide personalised investment, legal or trading advice.