The National Stock Exchange of India (NSE) stands as a titan in the global financial landscape, with an average of over Rs 1,12,000 crores (USD 13.4 billion) worth of equity value traded daily. NSE’s offerings extend far beyond equities, encompassing ETFs, mutual funds, SLBs, sovereign gold bonds, SME listings, and more. Renowned for its world-leading derivatives market, NSE is the largest exchange globally for futures and options traded. The NSE Nifty 50 has evolved into a benchmark index, representing the strength and dynamism of the Indian capital market to the international business community.
1.Strong Financial Performance
For FY 2023-24, NSE reported consolidated net profit of Rs 8,306 crores, up 51% year on year; consolidated revenue stood at Rs 16,352 crores, up 28%. The consolidated total income rose 17% to Rs 19,177 crores and net profit surged 47% to Rs 12,188 crores.
High profitability and consistent top-line growth indicate that NSE’s business model is robust and well-positioned for continued expansion.
2.High Margin and Operational Efficiency
NSE Group’s total revenue in the quarter ending June ’24 increased by 47% from INR 3,357 crores to INR 4,950 crores. This significant rise showcases NSE’s ability to generate continuous growth in operations.The operating revenue was 91% of the total revenue.
High operational efficiency and scalability mean additional trading volumes translate directly into higher profits, creating long-term compounding potential.
3.Competitive Moat And Market Infrastructure
NSE is India’s leading exchange with deep regulatory and technological moats, making entry difficult for competitors. It is ranked among the world’s largest derivatives exchanges by number of contracts.Such dominant infrastructure businesses generate predictable cash flows and have lower disruption risk, ideal for conservative long-term investors.
4.Growth Tailwinds
In Q1 FY25, NSE’s operating revenue grew 51% year on year to Rs 4,510 crores.India’s retail investor base and market participation continue to rise sharply, fueling higher trading and clearing volumes.NSE benefits directly from India’s financialization trend and growing capital market participation, creating long-term structural growth.
5.Attractive Pre-IPO and Value Unlock Opportunity
NSE shares are currently available only in the unlisted market, often at valuations below what public markets may assign post-listing.A future IPO could result in significant valuation re-rating as institutional and retail investors gain access.Buying unlisted shares allows early investors to capture upside from both earnings growth and potential listing premium.
