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NSE shares in focus after Q2 net profit rises 23% YoY. Why Jefferies, other brokerages remain bullish?

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In short

The exchange achieved a net profit of Rs 2,578 crore for the second quarter, while transaction charge revenue climbed 9% to Rs 3,035 crore. Alongside these earnings, the board authorized the divestment of up to a 40% stake in the National Coal Exchange of India Limited through a secondary share sale. Brokerages including Jefferies and Emkay Global highlighted robust equity volumes and potential catalysts, such as impending December changes to CAS, to justify their buy recommendations. The company's equity shares had closed Tuesday at Rs 1,803.80 ahead of the results, remaining slightly above their initial issue price.

Key points

  • Expanding trading volumes across cash and options segments are driving consistent core op…: Expanding trading volumes across cash and options segments are driving consistent core operational revenue growth for the exchange.
  • Brokerages view upcoming regulatory adjustments scheduled for December as key near-term c…: Brokerages view upcoming regulatory adjustments scheduled for December as key near-term catalysts to boost market turnover.
  • The exchange is actively monetizing subsidiary assets while sustaining steady financial m…: The exchange is actively monetizing subsidiary assets while sustaining steady financial momentum following its recent public debut.

Sources checked by our analysis pipeline: 1

NSE announced its first set of quarterly results after debuting on the stock market in the post-market hours of Tuesday. Its consolidated revenue from transaction charges rose 9% YoY to Rs 3,035 crore in Q2 FY27, from Rs 2,789 crore in Q2 FY26, driven by higher trading volumes in the cash market and equity options segments.

The stock exchange’s cash market trading segment recorded an average daily traded volume (ADTV) of Rs 1.18 lakh crore during the quarter under review, marking a 24% increase YoY. The ADTV for equity options, measured by premium value, rose 3% YoY to Rs 47,977 crore. Meanwhile, the ADTV for the equity futures segment stood at Rs 1,24,574 crore during the quarter.

Also Read | NSE Q2 Results: Profit jumps 23% to Rs 2,578 crore, revenue rises 9%

Along with the Q2 results, NSE announced that its board has approved the divestment of up to 40% stake in National Coal Exchange of India Limited, its wholly-owned subsidiary. The proposed divestment will be carried out through a secondary sale of equity shares in one or more…

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