NSE IPO in progress: Zero debt, liquidity status, valuation ratios and other key financials

The much-awaited initial public offering (IPO) of the National Stock Exchange of India (NSE) has opened for subscription today, marking a major event for India's capital markets. The IPO will close on Monday, September 21. A day before the IPO, NSE raised Rs 6,746.18 crore from 189 anchor investors at the upper end of the price band.

With an issue size of Rs 22,561.57 crore, the NSE IPO is India's second-largest share sale after Hyundai Motors with a size of Rs 27,859 crore. LIC was the third-largest IPO with an issue size of Rs 20,557 crore. Paytm was the fourth largest with IPO size of Rs 18,300 crore and Vodafone India was the fifth largest IPO with a size of Rs 18,000 crore.

Meanwhile, shares are available in the offer for sale (OFS) with a price band of Rs 1,700 to Rs 1,785 per equity share. Investors can bid for a minimum of eight shares in a single lot. At the upper end of the price band, the minimum investment required for one lot will be Rs 14,280.

Let's take a look at the key financials of India's largest bourse by volumes before applying for subscription in its IPO.

Valuation: Premium multiples remain the key talking point

The biggest change is visible in NSE's valuation ratios. On an annual basis, EV/Sales declined from 27.9 times in FY24 to 24.2 times in FY25 and 23.8 times in FY26. However, the multiple jumped to 101.5 times in Q1FY26 and stood at 87.3 times in Q1FY27. Similarly, EV/EBITDA fell from 35.6 times in FY24 to 32.2 times in FY25 and 31.3 times in FY26. It was much higher at 130.7 times in Q1FY26 and 112.1 times in Q1FY27. The P/E ratio stood at 52.9 times in FY24, fell to 41.3 times in FY25 and 42.4 times in FY26, before rising sharply to 157.1 times in Q1FY26 and 143.9 times in Q1FY27.

Meanwhile, P/BV ratio has steadily declined from 18.4 times in FY24 to 14.6 times in FY25, 13.8 times in FY26 and 12.5 times in Q1FY27.

Revenue growth 

NSE's consolidated sales increased from Rs 14,780 crore in FY24 to Rs 17,140.7 crore in FY25, marking 16% growth. However, growth reversed in FY26, with sales declining 3.1% to Rs 16,601.3 crore.

The recovery was visible in the June quarter. Sales rose from Rs 4,032.2 crore in Q1FY26 to Rs 4,560.4 crore in Q1FY27, translating into a 13.1% year-on-year growth.

EBITDA growth 

EBITDA rose sharply from Rs 11,610.8 crore in FY24 to Rs 12,881 crore in FY25, representing 10.9% growth. However, EBITDA declined 2.1% to Rs 12,616.1 crore in FY26.

In Q1FY27, EBITDA increased to Rs 3,550.9 crore, compared with Rs 3,129.7 crore in Q1FY26. This translates into a 13.5% year-on-year growth.

PAT growth remains positive in Q1

Reported profit after tax increased from Rs 8,406.5 crore in FY24 to Rs 11,605.7 crore in FY25, before declining to Rs 10,179.5 crore in FY26. The decline in FY26 was also reflected in adjusted PAT, which stood at Rs 10,411.5 crore, down from Rs 10,698.7 crore in FY25.

In Q1FY27, reported PAT increased to Rs 3,131.9 crore from Rs 2,811.8 crore, while adjusted PAT rose to Rs 3,070.5 crore from Rs 2,811.8 crore. Adjusted PAT growth was 9.2% year-on-year.

Financial ratios

NSE's EBITDA margin stood at 78.6% in FY24 before declining to 75.1% in FY25. It recovered to 76% in FY26 and further improved to 77.9% in Q1FY27 compared with 77.6% in Q1FY26.

EBIT margin followed a similar trajectory. It fell from 75.6% in FY24 to 72% in FY25, before recovering to 72.2% in FY26. In Q1FY27, the margin rose to 74.3%, up from 73.9% in the year-ago quarter.

The net profit margin has remained strong. It increased from 56.5% in FY24 to 62.4% in FY25 and 62.7% in FY26. However, Q1FY27 saw some moderation, with the margin declining to 67.3% from 69.7% in Q1FY26.

Overall, the numbers point to a high-margin business, but the latest quarter indicates some moderation in net profitability.

Return ratios show a sharp quarterly distortion

NSE's Return on equity (ROE) stood at 34.8% in FY24 and improved to 39.4% in FY25 before falling to 33.3% in FY26. On a quarterly basis, however, ROE was only 8.6% in Q1FY26 and 9% in Q1FY27.

The Return on capital employed (ROCE) declined from 46.4% in FY24 to 44.9% in FY25 and 37.8% in FY26. It stood at 8.5% in Q1FY26 and improved marginally to 8.8% in Q1FY27.

Liquidity remains strong

NSE's current ratio improved steadily from 8.8 times in FY24 to 10.1 times in FY25 and 11.3 times in FY26. It moderated to 9.4 times in Q1FY26 and further to 7.7 times in Q1FY27, but remains comfortably above one times. An ideal current ratio should be between 1.2 to 2, which signals that a business has two times more current assets than liabilities to covers its debt.

The quick ratio followed a similar pattern, rising from 4.9 times in FY24 to 5.1 times in FY25 and 8.5 times in FY26. It fell to 5 times in Q1FY26 and 4.8 times in Q1FY27, still indicating a strong short-term liquidity position.

Debt remains virtually absent

One of the strongest features of NSE's balance sheet is its leverage profile. Adjusted debt/equity was zero across FY24, FY25, FY26, Q1FY26 and Q1FY27.

Bottom line

While annual EV/Sales, EV/EBITDA and P/E multiples have moderated over FY24-FY26, the Q1FY27 data remains high because they are based on a single quarter. This makes the IPO's valuation a critical factor for investors to assess alongside NSE's strong financials.