The National Stock Exchange (NSE) has seen its shares climb over 12% in the past month, hitting a fresh high of Rs 1,965. This significant rally comes on the heels of robust financial results for the September quarter (Q2 FY27), signaling strong market performance since its debut on September 24.
Strong Q2 FY27 Performance Fuels Investor Confidence
For the second quarter of fiscal year 2027, the NSE reported an impressive 23% year-on-year (YoY) growth in consolidated profit after tax (PAT), reaching Rs 2,578 crore. Consolidated total income also saw a healthy 9% increase, amounting to Rs 4,554 crore. A standout figure was the operating EBITDA, which soared by 107% YoY to Rs 3,079 crore, achieving a remarkable EBITDA margin of 76%.
Revenue from transaction charges, a key indicator of market activity, rose 9% YoY to Rs 3,035 crore. This growth was primarily driven by higher volumes in both the cash market and equity options segments. The average daily traded volume (ADTV) in the cash market segment surged 24% YoY to Rs 1,18,377 crore, while equity options (premium value) ADTV increased 3% YoY to Rs 47,977 crore.
Expert Insights on NSE Stock Outlook
Market analysts are largely positive on the National Stock Exchange's prospects. Arun Kejriwal, a veteran market observer, noted that the NSE's rally aligns with the broader upward trend in large-cap stocks. He emphasized that the listed exchange space is crucial for the Indian markets to sustain a bullish trajectory.
Ravi Singh, Chief Research Officer at Master Capital Services, highlighted the stock's 18% recovery from recent lows, attributing it to improved investor sentiment and the strong Q2 performance. Singh suggested that investors with a long-term view could consider accumulating NSE shares at current levels, setting a target price of Rs 2,000, while cautioning to consider valuations and market risks.
Deven Choksey, MD of DRChoksey Finserv, views NSE as a compelling long-term and “deep value” investment. He pointed to the exclusive nature of the exchange business and the inherent liquidity benefits for established exchanges as key factors. Choksey also described NSE stock as a “shock absorber” for portfolios, providing comfort during volatile market periods due to its unique business model and growth potential through new product offerings.
“The long-term investment in this case is, I think, a deep value investment largely because the exchange business is exclusive. It’s not a common business. Not everybody can come into the exchange business,” stated Deven Choksey.
The consistent financial growth and positive expert sentiment suggest that the National Stock Exchange remains a strong contender for investors looking at long-term opportunities in the Indian market.