Archive · 9 Sep 2026
NSE Subsidiaries Turn Profitable as Derivatives Revenue Declines
Three businesses owned by the National Stock Exchange made profits in FY26 after losing money the year before.
This is important because NSE currently depends heavily on trading, especially options.
Options provide about 60% of its transaction-charge revenue.
Futures and options activity fell 18% during the year.
Experts said the profitable businesses could give NSE more sources of income.
However, they do not expect these subsidiaries to become as large as the main exchange soon.
Two other NSE businesses continued to lose money.
NSE International Exchange in GIFT City was identified as a possible future growth engine.
NSE IFSC Clearing Corporation, NSE Academy, and NSE Administration and Supervision turned profitable in FY26.
NSE’s futures and options turnover declined 18% in FY26, pressuring revenue.
Options generated about 60% of NSE’s transaction-charge revenue, its largest revenue stream.
Experts said the profitable subsidiaries could make NSE’s earnings steadier, though they remain small.
NSE Sustainability Ratings and Analytics and NSEIX Global Access IFSC continued to report losses in FY26.
- Who
- The National Stock Exchange and its subsidiaries, with views from market experts Gaurav Arora and Vinit Bolinjkar.
- What
- Three NSE subsidiaries became profitable in FY26, while the exchange’s futures and options activity and revenue faced pressure.
- When
- FY26; the article also refers to the previous fiscal year for comparison.
- Where
- The National Stock Exchange’s businesses, including NSE’s GIFT City operations in India.
- Why
- NSE is seeking to diversify its revenue because it remains heavily dependent on domestic derivatives trading.
Diversification Optimism
Cautious Outlook
Impact of profitable subsidiaries
Diversification Optimism
Gaurav Arora said the businesses are maturing independently and could make NSE’s profits steadier by reducing dependence on daily trading volumes.
Cautious Outlook
Vinit Bolinjkar said the subsidiaries are encouraging but will remain relatively small businesses that mainly complement NSE’s core trading operations.
Continued subsidiary losses
Diversification Optimism
Arora said losses can be reasonable during investment and scale-up phases if there is a clear path to growth.
Cautious Outlook
Persistent losses would become a concern if they continue for three to four years without a clear route to scale.
NSE International Exchange’s prospects
Diversification Optimism
Arora said NSE International Exchange’s equity-derivatives presence and strong turnover growth could make GIFT City a meaningful gateway to international capital.
Cautious Outlook
Bolinjkar does not expect any NSE subsidiary to become as large as the core exchange business, even over the longer term.
- Profitable subsidiaries
- NSE IFSC Clearing Corporation, NSE Academy, and NSE Administration and Supervision
- Unprofitable subsidiaries
- NSE Sustainability Ratings and Analytics and NSEIX Global Access IFSC continued to report losses in FY26
- F&O turnover change
- Futures and options turnover declined 18% in FY26
- Options revenue share
- Options contributed about 60% of NSE’s transaction-charge revenue
- Core revenue dependence
- NSE remains overwhelmingly tied to trading activity
- Potential growth engine
- NSE International Exchange in GIFT City was identified as a possible longer-term growth business
- Expert outlook
- The profitable subsidiaries are viewed as encouraging, but are not expected to rival NSE’s core exchange business soon