NSE IPO Valuation: Choosing the Right Earnings Figure
NSE's FY2026 earnings per share were ₹41.62, compared with ₹49.24 in FY2025 and ₹33.56 in FY2024. These are the annual earnings figures in its September 10, 2026 red herring prospectus, which leaves the offer price and related IPO price-to-earnings ratios unfilled.
The filing therefore supports an explanation of the valuation inputs, but not a completed IPO valuation based on a price supplied in that document. The choice of earnings period also matters: annual EPS, quarterly EPS and a weighted historical average describe different measures.
Which NSE earnings figure is used in the RHP?
The basis-of-offer-price section provides basic and diluted consolidated EPS adjusted for changes in share capital. Both measures are equal for the disclosed periods because NSE reports no outstanding potentially dilutive equity shares.
The RHP defines EPS using profit attributable to NSE's owners divided by the weighted average number of equity shares outstanding for the relevant period. This is more precise than dividing any available profit headline by a share count from a different date.
How would the offer price determine P/E and market value?
For a price of P rupees per share, a price-to-earnings ratio based on FY2026 EPS would be P divided by ₹41.62. This is a formula expressing the relationship between price and historical earnings, not an assumed offer price.
NSE had 247.5 crore equity shares, and the proposed IPO is entirely an offer for sale. On that disclosed share base, total equity market value in crore rupees would equal P multiplied by 247.5.
The smaller number of shares included in the IPO should not be used as the share count for valuing the whole company. Multiplying price by offered shares would measure the size of the share sale, rather than NSE's total equity value.
Why does the earnings period change the result?
At the same share price, dividing by the higher FY2025 EPS of ₹49.24 produces a lower multiple than dividing by FY2026 EPS of ₹41.62. The arithmetic shows why a valuation claim needs to identify the earnings year.
The weighted average of ₹42.82 is also historical. Its greater weight on FY2026 does not make it a forecast of FY2027 earnings or an independently estimated sustainable earnings figure.
The June 2026 EPS of ₹12.61 covers only three months. Multiplying it by four would impose a constant quarterly run-rate assumption. The RHP explicitly labels the quarterly figure as not annualised and does not establish that assumption as a confirmed annual outcome.
How does the bonus issue affect EPS comparisons?
NSE's November 2024 4:1 bonus issue added four shares for every existing share. The RHP retrospectively adjusts EPS for the bonus across all periods presented.
That treatment places the historical figures on a comparable share basis. Using an older, unadjusted EPS alongside a post-bonus share price would combine incompatible per-share measures.
The same principle applies to historical dividends and share acquisition prices. A change in the number of shares can alter a per-share presentation without creating an equivalent change in the underlying business value.
What does the BSE comparison establish?
The RHP identifies BSE as a listed industry peer and reports a P/E ratio of 54.28 times for it, calculated using the September 9, 2026 closing price and FY2026 diluted EPS. This is a dated comparison, not a live market multiple.
NSE's corresponding IPO multiple is left blank. The peer figure consequently does not, on its own, establish a valuation premium or discount for NSE.
The RHP also reports NSE's net asset value per share at ₹129.75 for March 31, 2026 and ₹142.40 for June 30, 2026. These balance-sheet measures differ from earnings per share and from a market price.
NSE's valuation inputs become useful when price, share count, accounting measure and period are matched consistently. The supplied RHP provides the financial denominators and ownership base, while leaving the offer-price-dependent calculations incomplete.