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NSE IPO: Strong Market Position, Risks and Brokerage View
The National Stock Exchange of India is considering an IPO, which lets people buy shares in the exchange.
NSE is one of India’s biggest markets for buying and selling shares and financial contracts.
It handled most of India’s cash-market and equity-futures trading in FY26.
The company also operates important systems for clearing and settling trades.
NSE made a large profit, but its revenue and profit were lower in FY26 than the previous year.
Its business depends heavily on fees from transactions, especially equity options.
Its share of the equity-options market has fallen, which is a concern.
New rules and dependence on a small group of trading members could also create risks.
SAMCO Securities still believes the company’s scale and financial strength support subscribing for the long term.
SAMCO Securities recommended subscribing to the NSE IPO for the long term.
At the upper price band of Rs 1,785, NSE is valued at 42.89 times FY26 earnings.
NSE held 92.99% of India’s cash-market turnover and 99.79% of equity-futures turnover in FY26.
FY26 revenue fell to Rs 16,601.31 crore and profit after tax declined to Rs 10,302.06 crore.
Key risks include dependence on equity-options charges, falling options market share, regulation and trading-member concentration.
- Who
- The National Stock Exchange of India and SAMCO Securities analyst Raj Gaikar.
- What
- An assessment of whether investors should subscribe to the NSE IPO.
- Where
- India’s securities and financial-markets sector.
- When
- The assessment uses FY26 results, June 30, 2026 operating data and Q1 FY27 results.
- Why
- NSE has a dominant market position and strong balance sheet, but faces dependence on derivatives, falling equity-options share and regulatory risks.
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Consider Valuation and Business Risks
Market position
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NSE’s dominant share of cash-market and derivatives trading, large investor base and integrated infrastructure create a strong competitive advantage.
Consider Valuation and Business Risks
Its equity-options market share declined from 96.86% in FY24 to 74.71% in FY26 and 68.48% in Q1 FY27.
Financial strength
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NSE reported a 66.85% operating EBITDA margin in FY26, held no fund-based borrowings and had Rs 64,771.28 crore in treasury investments.
Consider Valuation and Business Risks
FY26 revenue declined from Rs 17,140.68 crore to Rs 16,601.31 crore, while profit after tax fell from Rs 12,187.69 crore to Rs 10,302.06 crore.
Valuation and dependence
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SAMCO Securities said the market position, margins, debt-free balance sheet and long-term opportunity support the investment case.
Consider Valuation and Business Risks
At Rs 1,785, NSE is valued at 42.89 times FY26 earnings, while 78.65% of FY26 operating revenue came from transaction charges and equity options contributed 60.22%.
Key facts
- Upper price band
- Rs 1,785
- FY26 revenue
- Rs 16,601.31 crore
- FY26 profit after tax
- Rs 10,302.06 crore
- FY26 valuation
- 42.89 times earnings at the upper price band
- FY26 cash-market share
- 92.99% of India’s cash-market turnover
- Q1 FY27 revenue
- Rs 4,560.41 crore, up 13.10% year-on-year
- Brokerage view
- SAMCO Securities recommended subscribing for the long term
Sources
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