NSE IPO attractive, valuation offers a favourable entry point, says Angel One
NSE’s dominant market position, significantly higher revenue and profitability, strong market share in equity derivatives, and long-term structural growth in Indian capital markets provide comfort, Angel One said.
- Sep 17, 2026,
- Updated Sep 17, 2026 8:41 AM IST
Angel One, in a note on NSE IPO, said the issue is valued attractively relative to listed peer BSE, offering a favourable entry point. At the upper price band of Rs 1,785, NSE is valued at a post-issue PE of 35.4 times, compared with BSE’s 54.2 times, the domestic brokerage said while suggesting a 'Subscribe' rating on the IPO.
"NSE’s dominant market position, significantly higher revenue and profitability, strong market share in equity derivatives, and long-term structural growth in Indian capital markets provide further comfort. Despite near-term regulatory headwinds to derivatives volumes, we believe the valuation offers a favourable entry point given the company’s strong competitive position and earnings potential," Angel One said.
The IPO will open for public subscription today.
Angel One said the Indian capital markets ecosystem is supported by strong structural tailwinds, including sustained GDP growth, increasing financialisation of household savings through mutual funds and SIPs, expanding digital infrastructure and a rapidly growing retail investor base.
"Strong growth headroom remains across asset classes, with cash market turnover projected to grow at 14–16 per cent CAGR to Rs 473–507 lakh crore by FY30P and corporate bond turnover at 13–18 per cent CAGR. However, near-term derivatives volumes may remain under pressure due to revised STT rates and SEBI’srisk-mitigation measures," it said.
The domestic brokerage said NSE's revenue grew at a 5.99 per cent compounded annually over FY24-FY26 to Rs 16,601.31 crore, but its FY26 revenue fell 3.15 per cent year-on-year from FY25.
Operating Ebitda fell 12.25 per cent to Rs 11,097.90 crore, PAT declined 15.47 per cent to Rs 10,302.06 crore, RoE moderated to 32.98 per cent and RoCE to 42.80 per cent. The decline, Angel One said, reflected SEBI's derivatives measures and STT increases, which cut equity options notional average daily turnover from Rs 312.84 lakh crore to Rs 258.28 lakh crore.
"Q1FY27 indicates a recovery. In Q1FY27, revenue from operations rose 13.10 per cent YoY to Rs 4,560.41 crore, operating Ebitda rose 14.84 per cent to Rs 3,594.25 crore at a 78.81 per cent margin and PAT rose 6.71 per cent to Rs 3,120.08 crore," Angel One said.
Angel One, in a note on NSE IPO, said the issue is valued attractively relative to listed peer BSE, offering a favourable entry point. At the upper price band of Rs 1,785, NSE is valued at a post-issue PE of 35.4 times, compared with BSE’s 54.2 times, the domestic brokerage said while suggesting a 'Subscribe' rating on the IPO.
"NSE’s dominant market position, significantly higher revenue and profitability, strong market share in equity derivatives, and long-term structural growth in Indian capital markets provide further comfort. Despite near-term regulatory headwinds to derivatives volumes, we believe the valuation offers a favourable entry point given the company’s strong competitive position and earnings potential," Angel One said.
The IPO will open for public subscription today.
Angel One said the Indian capital markets ecosystem is supported by strong structural tailwinds, including sustained GDP growth, increasing financialisation of household savings through mutual funds and SIPs, expanding digital infrastructure and a rapidly growing retail investor base.
"Strong growth headroom remains across asset classes, with cash market turnover projected to grow at 14–16 per cent CAGR to Rs 473–507 lakh crore by FY30P and corporate bond turnover at 13–18 per cent CAGR. However, near-term derivatives volumes may remain under pressure due to revised STT rates and SEBI’srisk-mitigation measures," it said.
The domestic brokerage said NSE's revenue grew at a 5.99 per cent compounded annually over FY24-FY26 to Rs 16,601.31 crore, but its FY26 revenue fell 3.15 per cent year-on-year from FY25.
Operating Ebitda fell 12.25 per cent to Rs 11,097.90 crore, PAT declined 15.47 per cent to Rs 10,302.06 crore, RoE moderated to 32.98 per cent and RoCE to 42.80 per cent. The decline, Angel One said, reflected SEBI's derivatives measures and STT increases, which cut equity options notional average daily turnover from Rs 312.84 lakh crore to Rs 258.28 lakh crore.
"Q1FY27 indicates a recovery. In Q1FY27, revenue from operations rose 13.10 per cent YoY to Rs 4,560.41 crore, operating Ebitda rose 14.84 per cent to Rs 3,594.25 crore at a 78.81 per cent margin and PAT rose 6.71 per cent to Rs 3,120.08 crore," Angel One said.