New Delhi [India], September 15 (ANI): National Stock Exchange (NSE) Managing Director and CEO Ashish Kumar Chauhan said the exchange expects to maintain its high profit margins as it expands its product offerings, reaches more investors and explores newer geographies.
In an exclusive conversation with ANI, Chauhan said NSE has maintained strong profitability over the past several years, with its EBITDA margin remaining around 77-79 per cent and post-tax profit margin at around 55-57 per cent.
“Broadly speaking, over the last several years NSE has been running EBITDA margins of around 77 to 79 per cent, which converts into post-tax profits of around 55 to 57 per cent,” Chauhan said.
He attributed the high margins primarily to the platform-based nature of the exchange's business, where a significant portion of costs remain fixed. As transaction volumes, products and the number of users increase, the additional revenue can therefore contribute significantly to the bottom line.
“It remains like that because it's a platform. And in platform, what happens is there are costs which are fixed,” Chauhan said.
He said the exchange has been able to keep control over two major cost areas -- information technology (IT) and manpower -- while continuing to expand its operations.
“NSE has been able to control its large two major costs which are IT cost and manpower cost,” he said.
According to Chauhan, the ability to add new products and expand the investor base without a corresponding increase in fixed costs could help NSE maintain its strong margins going forward.
“If you are able to create newer products or increase your sales, then it helps your top line and bottom line both and that improves your EBITDA as well as PAT margins,” he said.
Chauhan said NSE's future growth would depend on its ability to expand into newer products, reach additional investors and enter newer geographies while maintaining control over costs.
“If you are able to control and add newer products, go into newer additional investors, newer geographies, then we would continue to have sort of high margins going forward,” he said.
The comments come as NSE prepares for its initial public offering (IPO), which is expected to be closely watched by investors given the exchange's dominant position in India's capital markets and its strong profitability.
Chauhan also highlighted the significant growth in NSE's investor base since the exchange began operations in 1994. From around one million investors at the time, NSE now serves around 13 crore unique investors with 27 crore accounts, he said.
He expects India's investor base to expand further as rising prosperity and the growth of the middle class encourage more people to participate in financial markets.
Chauhan's comments highlight the potential for NSE to combine its platform-based operating model with India's expanding investor participation, new financial products and geographical reach to sustain its high profitability in the years ahead.
National Stock Exchange of India Limited has fixed the price band of Rs 1,700/- to Rs 1,785/- per Equity Share of face value Rs. 1/- each for its initial public offer. The Initial Public Offering (“IPO” or “Offer”) of the Company will open on 17th September 2026, for subscription and close on 21st September 2026. Investors can bid for a minimum of 8 Equity Shares and in multiples of 8 Equity Shares thereafter. (ANI)
NSE expects high profit margins to sustain as it adds products, investors and geographies: MD
