NSE Options Supplied 60% of Fiscal 2026 Revenue as Income Fell

National Stock Exchange of India Limited (NSE) derived 60.22% of Fiscal 2026 revenue from operations from options transaction charges, making options its largest revenue source. Total transaction-charge revenue fell 4.24% to Rs 13,057.012 crore as average daily trading volumes declined after Securities and Exchange Board of India (SEBI) derivatives measures.

How dependent is NSE on options revenue?

NSE is dependent on options revenue because options transaction charges generated Rs 9,997.568 crore, or 60.22%, of its Rs 16,601.309 crore revenue from operations in Fiscal 2026. Transaction charges overall contributed Rs 13,057.012 crore, or 78.65% of operating revenue, while futures generated Rs 1,480.097 crore, or 8.92%. Options therefore accounted for about 76.57% of NSE's Fiscal 2026 transaction-charge revenue.

The options share changed over the three fiscal years disclosed in the prospectus. Options represented 64.62% of operating revenue in Fiscal 2024, declined to 59.47% in Fiscal 2025 and recovered to 60.22% in Fiscal 2026. The value of options charges rose from Rs 9,550.189 crore in Fiscal 2024 to Rs 10,194.030 crore in Fiscal 2025, before declining to Rs 9,997.568 crore in Fiscal 2026.

NSE's options reliance remained evident in the three months ended June 30, 2026. Options generated Rs 2,743.947 crore, or 60.17%, of Rs 4,560.410 crore in operating revenue, compared with 58.84% in the three months ended June 30, 2025. Transaction charges supplied 79.44% of operating revenue in the June 2026 quarter, while futures supplied 8.06%.

Why did NSE transaction income decline in Fiscal 2026?

NSE's Fiscal 2026 transaction income declined because average daily trading volume, or ADTV, fell in cash-market, equity-futures and equity-options products. Transaction charges decreased 4.24% from Rs 13,635.764 crore in Fiscal 2025 to Rs 13,057.012 crore in Fiscal 2026. NSE attributes the movement primarily to lower ADTV after macro-regulatory measures introduced during Fiscal 2026.

Equity-futures charges recorded the largest reported decline among the major derivatives lines, falling 14.31% from Rs 1,727.258 crore in Fiscal 2025 to Rs 1,480.097 crore in Fiscal 2026. Equity-futures ADTV fell from Rs 1,85,901.441 crore per trading day to Rs 1,59,443.213 crore. Equity-options ADTV, measured as premium value rather than total contract turnover, declined from Rs 62,448.660 crore per trading day to Rs 57,661.734 crore.

Cash-market ADTV declined from Rs 1,12,963.246 crore per trading day in Fiscal 2025 to Rs 1,05,516.667 crore in Fiscal 2026. Cash-market transaction charges fell from Rs 1,688.549 crore to Rs 1,554.643 crore across the same period. Options charges declined by Rs 196.462 crore, but their share of operating revenue increased because total operating revenue fell 3.15% in Fiscal 2026.

Which SEBI rules changed NSE derivatives volumes?

SEBI's October 1, 2024 and May 29, 2025 circulars changed trading conditions for NSE's equity derivatives products. The October 2024 circular required upfront collection of option premiums from buyers, increased minimum index-derivatives contract sizes and restricted permissible weekly expiries. NSE states that these measures modified volumes in cash and derivatives markets and contributed to lower Fiscal 2026 trading revenue.

The May 29, 2025 circular introduced a new open-interest formulation and recalibrated the market-wide position limit. Open interest is the number of outstanding derivatives positions, while a market-wide position limit caps aggregate positions in a security. NSE says the October 2024 and May 2025 measures affected options and futures volumes and reduced revenue from the two offerings in Fiscal 2026.

The filing says SEBI raised concerns about rapid growth in ultra-short-term derivatives trading, particularly expiry-day index options, because such activity can fuel excessive speculation and retail losses. SEBI has used position limits and margin requirements, which are collateral requirements for trading risk, and may introduce further interventions. Separately, from April 1, 2026, the Government of India increased securities transaction tax on futures sales from 0.02% to 0.05% of contract value and on options sales from 0.10% to 0.15% of premium value.

How much do non-trading fees and key members reduce NSE's reliance?

NSE reports several non-transaction revenue lines, but each was smaller than options in Fiscal 2026. Data services generated Rs 1,128.791 crore, or 6.80% of operating revenue; other operating revenue generated Rs 841.691 crore, or 5.07%; listing services generated Rs 352.436 crore, or 2.12%; and other services generated Rs 142.834 crore, or 0.87%. Other operating revenue consists of income from investing funds related to operating activities.

Some fee lines increased during Fiscal 2026 despite the decline in operating revenue. Listing-services revenue rose from Rs 313.821 crore in Fiscal 2025 to Rs 352.436 crore, while data-feed charges increased from Rs 154.402 crore to Rs 205.175 crore. Connectivity charges rose from Rs 407.132 crore to Rs 470.074 crore and licensing-services revenue increased from Rs 120.498 crore to Rs 151.845 crore, but these gains did not offset the Rs 578.752 crore transaction-charge decline.

NSE also reported revenue concentration among its trading members. Its top 10 trading members generated Rs 7,765.580 crore, or 46.78%, of Fiscal 2026 operating revenue, compared with 44.48% in Fiscal 2025 and 45.26% in Fiscal 2024. The largest member accounted for Rs 1,321.088 crore, or 7.96%, in Fiscal 2026; the members are domestic corporate entities or limited liability partnerships and are not related parties.

Conclusion

NSE's Fiscal 2026 revenue mix remained dominated by options, which supplied 60.22% of operating revenue even as options charges declined from Fiscal 2025. Lower ADTV in cash, equity futures and equity options reduced transaction charges by 4.24%, while data, listing, connectivity and licensing revenues remained much smaller than the trading business.

The next issue is how volumes respond to the SEBI derivatives framework introduced through the October 1, 2024 and May 29, 2025 circulars, as well as the higher securities transaction tax effective April 1, 2026. NSE states that further fiscal or regulatory measures may be introduced and that it cannot predict their terms, leaving options and futures activity central to future transaction income.