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The National Stock Exchange's (NSE) dominant market share and growing investor base continue to strengthen its position in India's financial markets, according to a report by Centrum.
According to the report, NSE commanded around 93 per cent market share in cash equities during FY26. The exchange also maintained nearly 100 per cent market share in equity futures and around 72 per cent market share in equity index options, underscoring its leadership across major market segments. So, taking note of these fundamentals, the report stated "NSE remains a dominant franchise with strong structural growth drivers". The report highlighted that the number of unique registered investors on NSE has grown to 129 million, reflecting increasing participation by retail investors in India's capital markets. Centrum noted that beyond its core equity market business, NSE is exploring growth opportunities in newer segments, including commodities, electricity futures, and data and analytics businesses. These segments are expected to support the exchange's long-term growth strategy. The report also pointed to NSE's strong financial performance over the past five years. Revenue from operations grew at a compound annual growth rate (CAGR) of 24 per cent during FY21-FY26, while EBITDA and net profit expanded at a CAGR of 23 per cent over the same period. Although FY26 saw some moderation due to regulatory changes, lower trading activity and one-off expenses, the report said profitability remained strong. EBITDA margins stayed above 70 per cent and return on equity (ROE) remained above 30 per cent. Looking ahead, Centrum expects earnings growth to improve from FY27 onwards. The report projected net profit to grow at around 16 per cent CAGR during FY26-FY28. At the same time, the report flagged certain risks. Nearly 80 per cent of NSE's revenue comes from trading-related activities, with options and futures contributing the majority of transaction income. The report also noted that regulatory measures such as higher Securities Transaction Tax (STT), tighter derivatives regulations and revised RBI capital market exposure norms could affect trading volumes and growth. It stated, "Key risks primarily stem from concentration and regulatory factors" Despite these risks, Centrum said NSE's strong market position, expanding investor base and leadership across key market segments continue to reinforce its dominance in India's financial markets. (ANI)
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