BSE vs NSE: Which stock exchange performed better in Q3?

SYNOPSIS: BSE delivered sharp year-on-year profit growth, while NSE sustained scale-driven momentum with strong margins and volumes in Q3 FY26, as India’s leading exchanges reflected evolving trading dynamics and capital market strength.

India’s capital market ecosystem continues to evolve rapidly, with its two premier stock exchanges, BSE and NSE, playing a central role in shaping trading activity, liquidity trends, and investor participation. The third quarter of FY26 offered fresh insights into how both exchanges navigated market dynamics across equity cash and derivatives segments.

While BSE demonstrated strong year-on-year growth in revenue and profitability, reflecting improved operating leverage, NSE maintained its dominant scale with robust trading volumes and expanding margins. The period was also marked by a significant development for NSE, as it moved forward with its long-awaited IPO process following regulatory clearance.

Here’s a detailed comparison of how the two exchanges performed in Q3 FY26, examining their financial metrics, trading activity, revenue mix, and broader market contributions.

Company Overview

With a market cap of Rs. 1.11 lakh crores, shares of BSE Limited tumbled nearly 3 percent on BSE to hit an intraday low at Rs. 2,733.8 on Tuesday. Established in 1875, BSE Limited (Bombay Stock Exchange) is Asia’s first Stock Exchange and one of India’s leading exchanges. It provides a platform for capital-raising, trading in equity, debt instruments, derivatives, mutual funds, and equities in small and medium enterprises (SMEs).

Meanwhile, the National Stock Exchange of India (NSE) was established in 1992, and is the country’s largest exchange and ranks among the world’s top markets. It provides a fully automated electronic trading platform for seamless access to investors nationwide.

NSE, in the first week of February, announced that its Board has approved the company’s initial public offering (IPO) via an Offer for Sale (OFS) by existing shareholders. In its statement, the exchange confirmed that it has formally set the long-pending listing process in motion after receiving a no-objection certificate (NOC) from the Securities and Exchange Board of India (SEBI).

Financial Performance

For Q3 FY26, BSE reported a consolidated revenue from operations of Rs. 1,244 crores, reflecting over 16 percent QoQ growth compared to Rs. 1,068 crores in Q2 FY26, and a year-on-year increase of around 62 percent from Rs. 768 crores recorded in Q3 FY25.

Net profit stood at Rs. 597 crore, indicating a marginal increase of more than 7 percent QoQ from Rs. 557 crores in Q2 FY26, while on a year-on-year basis, the profit jumped sharply by nearly 173 percent from Rs. 219 crores reported in Q3 FY25.

Further, operating performance improved during the quarter, with EBITDA (including Core Settlement Guarantee Fund – SGF) rising to Rs. 732 crore, marking an impressive growth of around 211 percent YoY from Rs. 235.6 crores in Q3 FY25, while EBITDA margins increased to 59 percent, reflecting an expansion of 2800 bps YoY from 31 percent.

Meanwhile, NSE posted a consolidated revenue from operations of Rs. 3,925 crores in Q3 FY26, reflecting a sequential growth of around 7 percent QoQ compared to Rs. 3,677 crores in Q2 FY26. Net profit for the quarter stood at Rs. 2,408 crore, indicating an increase of around 15 percent QoQ from Rs. 2,098 crores in Q2 FY26.

Operating performance also saw a sharp improvement. EBITDA for the December quarter surged to Rs. 2,978 crore, compared with Rs. 1,484 crore in Q2 FY26, while EBITDA margins expanded to 76 percent from 40.4 percent. This improvement came despite a one-time cost impact of Rs. 126 crore related to labour code implementation.

Trading Activity & Revenue Drivers

For the nine months ended FY26, BSE reported the average daily turnover (ADT) in the Equity Cash segment reduced to Rs. 7,604 crores, compared to Rs. 8,535.5 crores in 9M FY25, reflecting a moderation in trading activity year-on-year. Transaction Charges Income during 9M FY26 amounted to Rs. 186.2 crores, lower than Rs. 250.5 crores reported in 9M FY25. The decline was seen across both normal rate income (Rs. 105 crores vs Rs. 115 crores) and special rate income (Rs. 81.3 crores vs Rs. 135.5 crores), in line with softer turnover trends.

For the quarter ended December 2025, consolidated revenue was primarily driven by Transaction Charges, which stood at Rs. 952.6 crores, making it the largest contributor to the overall revenue stream. Revenue from Services to Corporates amounted to Rs. 156.4 crores, while Treasury Income on C&S Funds came in at Rs. 43 crores. Other Operating Income was reported at Rs. 92 crores, and Investment Income stood at Rs. 84 crores during the quarter. Additionally, Other Income contributed Rs. 6 crores to the consolidated revenue in December 2025.

On the other hand, the trading activity of NSE remained robust across segments during the quarter. In Q3 FY26, the cash market segment recorded an average daily traded volume (ADTV) of Rs. 99,023 crore, reflecting a 3 percent QoQ increase. Equity futures ADTV stood at Rs. 1,51,744 crore, up 8 percent QoQ, while equity options (premium value) ADTV rose 15 percent QoQ to Rs. 53,248 crore. Total income for the quarter increased to Rs. 4,419 crore, compared to Rs. 3,666 crore in Q2 FY26.

The QoQ growth was primarily driven by dividends received from subsidiaries and higher transaction revenues, while the 8 percent growth in revenue from operations is supported by increased trading volumes in both equity cash and derivatives segments.

During the first nine months of FY26, the exchange made a substantial contribution to the exchequer amounting to Rs. 41,842 crore. This included Securities Transaction Tax (STT) or Commodities Transaction Tax (CTT) of Rs. 34,835 crore, stamp duty of Rs. 2,472 crore, income tax of Rs. 2,414 crore, GST of Rs. 1,376 crore, and SEBI fees of Rs. 745 crore.

Conclusion

In summary, Q3 FY26 reflected the distinct positioning of India’s two leading exchanges within the evolving capital market landscape. While BSE delivered strong year-on-year growth in profitability and margins despite softer cash market turnover trends, NSE continued to demonstrate scale advantages through higher trading volumes, diversified revenue streams, and improved operating performance.

Both exchanges remain integral to India’s financial ecosystem, supporting liquidity, price discovery, and capital formation across segments. As market participation deepens and regulatory frameworks evolve, their performance will likely continue to mirror broader trends in investor activity, derivatives growth, and overall economic momentum.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post BSE vs NSE: Which stock exchange performed better in Q3? appeared first on Trade Brains.