10 hrs ago
Angel One Calls NSE IPO Attractive Despite Derivatives Pressure
Angel One thinks the National Stock Exchange of India’s IPO could be a good opportunity for investors.
The IPO is scheduled to open for public subscription today.
Angel One believes India’s financial markets can keep growing because the economy, digital services and number of retail investors are expanding.
People are also putting more household savings into mutual funds and systematic investment plans.
However, trading in some derivatives has weakened after tax and regulatory changes.
These changes contributed to lower NSE profits and operating earnings in FY26.
Angel One said the company’s first-quarter FY27 results showed signs of recovery.
NSE’s revenue and operating EBITDA both increased compared with the same quarter a year earlier.
Investors still need to consider the pressure on derivatives volumes.
Angel One said the NSE IPO offers a favourable entry point based on its valuation.
India’s capital-markets growth is supported by GDP growth, household financialisation, digital infrastructure and rising retail participation.
NSE revenue grew at a 5.99% annualised rate from FY24 to FY26, reaching Rs 16,601.31 crore.
NSE’s FY26 revenue, operating EBITDA and PAT declined year on year amid derivatives-related regulatory changes and higher STT.
Q1FY27 showed recovery, with revenue up 13.10% and operating EBITDA up 14.84% year on year.
- Who
- Angel One assessed the National Stock Exchange of India’s IPO.
- What
- Angel One described the IPO as attractive and said its valuation offered a favourable entry point.
- Where
- The assessment concerns India’s capital-markets ecosystem.
- When
- The IPO is scheduled to open for public subscription today; no calendar date is provided.
- Why
- Angel One cited long-term market-growth opportunities, while acknowledging near-term pressure on derivatives volumes.
IPO Investment Case
Risks and Constraints
Valuation and growth prospects
IPO Investment Case
Angel One said the IPO valuation offers a favourable entry point and highlighted structural growth in India’s capital markets.
Risks and Constraints
The article does not provide a competing valuation assessment, but notes that near-term derivatives activity may remain under pressure.
Recent financial performance
IPO Investment Case
Q1FY27 results indicated recovery, with revenue and operating EBITDA rising year on year.
Risks and Constraints
FY26 revenue, operating EBITDA and PAT all declined, while return on equity and return on capital employed also moderated.
Market trading outlook
IPO Investment Case
Cash-market turnover and corporate-bond turnover are projected to grow through FY30P.
Risks and Constraints
Derivatives volumes may remain weak because of revised securities transaction tax rates and Securities and Exchange Board of India risk-mitigation measures.
Key facts
- IPO status
- Scheduled to open for public subscription today.
- FY24-FY26 revenue growth
- NSE revenue grew at a 5.99% compounded annual rate to Rs 16,601.31 crore.
- FY26 revenue
- Revenue declined 3.15% year on year.
- FY26 operating EBITDA
- Operating EBITDA fell 12.25% to Rs 11,097.90 crore.
- FY26 PAT
- PAT declined 15.47% to Rs 10,302.06 crore.
- Q1FY27 recovery
- Revenue from operations rose 13.10% year on year to Rs 4,560.41 crore, while operating EBITDA rose 14.84% to Rs 3,594.25 crore.
- Derivatives pressure
- Equity-options notional average daily turnover fell from Rs 312.84 lakh crore to Rs 258.28 lakh crore.
Quotes
Angel One
Domestic brokerage providing analysis of the NSE IPO and capital-markets outlook
“Strong growth headroom remains across asset classes, with cash market turnover projected to grow at 14–16 per cent CAGR to Rs 473–507 lakh crore by FY30P and corporate bond turnover at 13–18 per cent CAGR. However, near-term derivatives volumes may remain under pressure due to revised STT rates and SEBI’srisk-mitigation measures,”
businesstoday.in
“Q1FY27 indicates a recovery. In Q1FY27, revenue from operations rose 13.10 per cent YoY to Rs 4,560.41 crore, operating Ebitda rose 14.84 per cent to Rs 3,594.25 crore at a 78.81 per cent margin and PAT rose 6.71 per cent to Rs 3,120.08 crore,”
businesstoday.in
Sources
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