NSE Q3 Results: Sebi’s F&O jolt, market correction leads to a revenue slump even as PAT grows 22% QoQ

India’s leading bourse NSE reported a strong third quarter numbers on a year-on-year (YoY) basis, but the sequential growth was significantly hit by a reduction in trading volumes.

Consolidated PAT surged 94% YoY to Rs 3,834 crore for the third quarter, but only rose 22% quarter-on-quarter.

Excluding the gains from sale of investments and the impact of Sebi settlement expenses as well as reversal of provision for core SGF recorded in the previous quarter, the normalized profit before tax dropped 3% QoQ.

Indian markets entered a bearish territory in the last three to four months, likely reducing the volumes quarter-on-quarter. The stricter Sebi norms in the futures and options segment also didn’t help.

Revenue from operations in the said third quarter rose 24% YoY to Rs 4,349 crore as the total expenses crashed 21% YoY. The revenues decline 4% quarter-on-quarter.

The revenue from transaction charges declined 4% quarter-on-quarter (QoQ) Rs 3,445 crore, also due to a reduction in volumes across cash market and derivatives segment.

Operating EBITDA increased by 50% YoY to Rs 3,398 crore in the third quarter.

For the nine months ended December 2024, total income grew by 30% YoY to Rs 14,780 crore and net profit for the same period surged 64% YoY to Rs 9,538 crore.

On a standalone basis, NSE’s total income in the third quarter stood at Rs 4,289 crores a compared to Rs 5,297 crore in Q2FY25 and Rs 3,452 crore in the corresponding quarter of last fiscal year.

The standalone revenue from operations in the same period was at Rs 3,945 crores, a sequential decline of 2% QoQ, due to a reduction in trading volumes across cash market and derivatives segment.

In the third quarter, the cash market trading segment recorded an average daily traded volume (ADTVs) of Rs 1.04 lakh crore (decline of 19% QoQ). The ADTV for equity futures segment in Q3FY25 stood at Rs 1.71 lakh crores, which is a drop of 15% QoQ.

Earnings per share (non-annualized) in 9MFY25 increased to Rs 38.54 from Rs 23.51 in 9MFY24, after considering the issuance of bonus equity shares in the ratio of 4:1.