Mumbai, July 8 (IANS) Ahead of its much-awaited initial public offering (IPO), the National Stock Exchange (NSE) has reported a slowdown in its core operating performance, with revenue from key business segments and trading activity declining during FY26, according to its Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI).

The exchange's total revenue from operations fell to Rs 16,601.3 crore in FY26 from Rs 17,140.67 crore in FY25, marking a decline of more than 3 per cent year-on-year.

Revenue from transaction charges, the NSE's largest source of operating income, dropped 4 per cent to Rs 13,057.01 crore in FY26, compared with Rs 13,635.76 crore in the previous financial year.

Income from clearing and settlement services also witnessed a sharp decline, falling 21.8 per cent to Rs 251.45 crore in FY26 from Rs 321.34 crore in FY25.

However, the exchange recorded growth in revenue from listing services. Income from this segment rose 10 per cent year-on-year to Rs 352.43 crore in FY26, up from Rs 313.82 crore in the previous fiscal.

The DRHP also reflected softer trading activity across key market segments, indicating weakness in the exchange's core business.

Average daily trading volume (ADTV) in the cash market declined 6.59 per cent to Rs 1,05,516.66 crore during FY26, compared with Rs 1,12,963.24 crore in FY25.

The derivatives segment also saw lower activity. Equity futures ADTV dropped 14.23 per cent year-on-year to Rs 1,59,443.21 crore from Rs 1,85,901.44 crore.

Similarly, equity options ADTV, measured in premium value terms, fell 7.66 per cent to Rs 57,661.75 crore in FY26 from Rs 62,448.66 crore a year earlier.

In its filing, the NSE cautioned that any sustained decline in trading volumes or transaction values could reduce demand for its products and services, which may adversely affect its growth prospects, financial condition, business performance and cash flows.

--IANS

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