NSE announced its Q2 & H1 FY25 results

08 November 2024

• ​Financial Highlights: In Q2 and H1 FY25, the company showcased impressive growth, achieving a year-on-year increase of 25% to Rs 5,023 Cr in Q2 FY25 and 35% to Rs 9,974 Cr in H1 FY25. A significant reduction in total expenses by 8% to Rs 1,303 Cr in Q2 FY25 led to an impressive EBITDA margin rise to 74% in Q2 FY25, up from 64% in Q2 FY24, resulting in a 57% increase in net profit to Rs 3,137 Cr. The exchange continued to dominate the cash market with a 93% market share, while it attained a remarkable 98% and 100% share in currency futures and options, respectively, despite losing about 10% in the equity options segment. Furthermore, the NSE maintained its status as the world's largest derivatives exchange for the 5th consecutive year, reflecting its ability to handle substantial volumes, which enhances its competitive edge and facilitates ongoing volume growth that supports both revenue and profitability.
  
  
• Operational Developments: Recent initiatives have focused on enhancing infrastructure to support increasing trade volumes, ensuring optimal uptime and reliability for users. These advancements aim to improve user experience, attract new traders, and facilitate high-frequency trading systems. Alongside this, the company has prioritized digital transformation, implementing enhancements that streamline processes, boost security, and accelerate transaction speeds, in line with global trends in technology adoption among stock exchanges. Additionally, the National Stock Exchange (NSE) has emphasized its global expansion, actively engaging with international investors and stakeholders to diversify its investor base. This strategy not only aims to integrate international markets but also seeks to create new revenue channels, thereby reducing reliance on the domestic market and promoting cross-border trading opportunities.
  
  
• Future Prospects: The NSE is focusing on several strategic initiatives aimed at driving growth and ensuring sustainability within the financial trading ecosystem. Firstly, the expansion into new markets will involve exploring derivatives and investment vehicles across various asset classes, offering the potential for diversification and growth. Technological advancements, particularly in AI and machine learning, will optimize trading and back-office operations, enhancing risk management and operational efficiency, thereby potentially boosting revenue. Furthermore, with the evolving regulatory landscape, the NSE’s proactive approach to compliance and risk management is vital for maintaining investor trust and ensuring operational resilience while mitigating legal and operational disruptions.