NSE Strengthens Its Grip as India’s Dominant Stock Exchange with Stellar Fin. Performance in FY25
Jul 1st, 2025 7:54 pm | By ThenewsmanofIndia.com | Category: LATEST NEWS
Ashishkumar Chauhan MD & CEO NSE Limited
(THE NEWSMAN OF INDIA.COM)
Mumbai | Business Desk | The National Stock Exchange of India Limited (NSE) has once again underlined its dominance in India’s capital markets, closing FY25 with record financials and market leadership across key segments. With over 94% share in cash equities and near-total control in equity options trading (99.9%), NSE’s structural monopoly continues to deepen.
For FY25, NSE reported a net profit of ₹12,188 crore—a nearly tenfold lead over its rival BSE, which posted \~₹1,322 crore. NSE’s revenue touched ₹17,141 crore, with an enviable net profit margin of 58% and return on equity (ROE) of 45%. Its EBITDA margins remain among the highest globally at 74%–78%.
NSE’s scale is unrivalled in India’s market infrastructure, serving over 21 crore registered accounts and 11.3 crore unique investors, with 99.9% PIN code coverage. Its revenue engine is powered by equity derivatives, which account for over 70% of transaction-related income—particularly equity options, the single largest contributor. Ancillary revenue streams such as data services, terminal fees, index licensing, and co-location services add to its diversified, high-margin model.
In terms of valuation, NSE’s market capitalization stands at ₹408 lakh crore, with a P/E ratio of 46.02x as of May 2025. For investors, this pricing reflects not just dominant market share but also strong fundamentals, technological leadership, and deep institutional trust. Major shareholders include LIC, SBI, and large foreign investors such as Temasek and Morgan Stanley.
Beyond domestic leadership, NSE is increasingly integrated globally through initiatives like GIFT Nifty trading with near 21-hour sessions, advanced co-location facilities, and robust systems capable of processing over 5 million messages per second. It has consistently led in IPO listings in Asia and raised the highest equity capital globally in FY24.
Nevertheless, challenges persist. Regulatory scrutiny following the infamous co-location scam has impacted its reputation, while its long-delayed IPO remains a sore point. Rising competition from BSE, which has captured up to 25% of the weekly index options market by changing expiry days and lowering transaction fees, also threatens NSE’s dominance in its most lucrative segment. Furthermore, any potential SEBI restrictions on speculative options trading could seriously dent revenues.
Despite these risks, analysts point to India’s ongoing financialization, rising retail participation, and growing institutional flows as structural tailwinds for NSE. As the Indian market moves towards faster settlements and deeper integration with global capital markets via GIFT City, NSE appears well-positioned to capture the bulk of this growth, making it one of the most compelling long-term bets in India’s financial services sector.
