The boom in the initial public offerings (IPO) could become a strong revenue stream for the National Stock Exchange (NSE) just as the country’s largest bourse prepares for its own listing, said brokerages pointing at the strong pipeline of public issues in the coming months.
The opportunity is already showing up in NSE’s numbers. Revenue from listing fees jumped 58% in two years, rising from Rs 223 crore in FY24 to Rs 352 crore in FY26, according to the exchange’s draft offer documents filed with the Securities and Exchange Board of India (Sebi). While the percentage is still very small at 2.1%, experts say that this should improve significantly.
The boost could also help NSE gradually diversify its revenue base at a time when regulatory measures and higher transaction taxes have weighed on derivatives activity — traditionally the exchange’s biggest source of income.
“Listing-based revenue looks well supported in FY27 due to a strong IPO pipeline,” said Vaqarjaved Khan, senior fundamental analyst at Angel One. However, he pointed out that much of NSE’s listing income comes from recurring annual fees and should therefore be viewed as a stable revenue stream rather than a major growth engine.
NSE earns revenue from listing services through listing, processing and book-building fees. Listing fees comprise a one-time initial fee paid by companies when they list as well as recurring annual charges linked to their paid-up capital and market capitalisation. Book-building and processing fees, meanwhile, are linked to the size of securities offerings.
Somil Mehta, head of retail research at Mirae Asset Sharekhan, said the 58% increase in listing revenue was meaningful, though not large enough yet to materially alter NSE’s revenue mix.
He expects the IPO momentum to continue in FY27, supported by strong domestic liquidity and higher investor risk appetite following the performance of small-cap stocks, providing another leg of growth for NSE’s listing income.
The potential arrival of some marquee issuers could provide an additional lift.
Amar Ambani, executive director at Yes Securities, said the pick-up in IPO activity, including potential large issues such as Jio Platforms, could lead to a meaningful increase in NSE’s listing-related revenue in FY27. Against a backdrop of subdued secondary-market activity, that could also increase the segment’s contribution to the exchange’s overall revenue.
The shift assumes significance because NSE’s biggest revenue engine — transaction charges — has already begun losing some share in the overall pie. Transaction charges accounted for 78.7% of NSE’s revenue in FY26, down from 82% in FY24.
Khan attributed the decline to a shrinking derivatives pool even as other revenue streams scaled up. With fewer active individual futures and options traders, higher securities transaction tax (STT) and tighter position limits, he expects transaction charges to account for around 75-76% of NSE’s revenue by FY28.
Mehta also expects NSE’s revenue base to become more diversified. Persistent losses among retail derivatives traders and the regulator’s efforts to curb excessive activity in the segment could keep pressure on exchange revenues from derivatives, he said.
Ambani expects derivatives activity to remain subdued in the near term amid greater regulatory focus on risk and the higher STT burden, but cautioned against viewing the slowdown as permanent.
“The revenue mix will evolve cyclically rather than move permanently in one direction. Over longer periods, I would bet on derivatives share picking up again,” he said.
That also means listing revenue may not provide a one-way growth story. IPO activity itself is cyclical and can change quickly with liquidity, valuations and the broader economic environment, Ambani said. But for now, a busy primary market gives NSE another revenue lever just as its traditional transaction-driven business faces a period of moderation.