National Stock Exchange of India Ltd (NSE) shares extended their upward trend for the fourth consecutive session on Friday, November 6, 2026, climbing 3.15 percent to hit a fresh peak of Rs 1,953.95. This surge follows the declaration of the exchange's September-quarter (Q2 FY27) results, which largely met or exceeded market expectations.
Strong Q2 FY27 Performance Fuels Investor Confidence
NSE reported a significant 23 percent growth in consolidated profit after tax (PAT) for the September quarter, reaching Rs 2,578 crore. Consolidated total income also saw a healthy 9 percent year-on-year (YoY) increase, totaling Rs 4,554 crore. A standout metric was the operating EBITDA, which soared by 107 percent YoY to Rs 3,079 crore, indicating robust operational efficiency with an impressive EBITDA margin of 76 percent.
Revenue from transaction charges, a key income stream, rose 9 percent YoY to Rs 3,035 crore in Q2 FY27, up from Rs 2,789 crore in Q2 FY26. This growth was primarily driven by higher volumes in both the cash market and equity options segments.
- Cash Market ADTV: Rs 1,18,377 crore (up 24% YoY)
- Equity Options ADTV (premium value): Rs 47,977 crore (up 3% YoY)
- Equity Futures ADTV: Rs 1,24,574 crore
Other revenue streams also contributed positively, with data connectivity charges at Rs 267 crore, operating investment income climbing 9 percent YoY to Rs 237 crore, data feed and terminal services revenue rising 43 percent YoY to Rs 165 crore, and listing services increasing 70 percent YoY to Rs 150 crore.
Brokerages Remain Bullish on NSE
Following the strong quarterly performance, several leading brokerages have largely maintained a positive stance on the recently listed stock:
- Morgan Stanley: Retained an 'Overweight' rating with an unchanged target price of Rs 2,315.
- Jefferies: Recommended 'Buy' with a revised target of Rs 2,125, up from Rs 2,085 previously.
- Macquarie: Maintained its 'Outperform' rating and a target of Rs 1,975. The brokerage noted that despite an in-line quarter, they expect the operating environment for capital markets to improve as SEBI adopts a more accommodative stance on Closing Auction Session (CAS) and implements reforms to strengthen market-linked products, benefiting NSE as a critical provider.
- JPMorgan: Retained a 'Buy' rating with a target of Rs 2,130. They highlighted that NSE's consolidated revenue from operations was 4 percent ahead of their estimate, and tight expense control helped deliver operating EBITDA 5.5 percent above their estimate, with profit 3.5 percent ahead despite lower other income.
Expert Views: A 'Deep Value' Investment
Deven Choksey, Managing Director of DRChoksey Finserv, views NSE as a long-term 'deep value' investment. He emphasized the exclusive nature of the exchange business and the inherent liquidity benefits for established exchanges, along with the potential for new product development. Choksey described the stock as a "shock absorber" for portfolios, providing comfort during volatile market conditions.
Ravi Singh, Chief Research Officer at Master Capital Services, echoed a similar sentiment, suggesting that investors with a long-term view should continue to hold the stock and consider accumulating it on market dips.