Stories
NSE Earnings Poised for 15% CAGR Growth, Says Emkay's Avinash Singh
C
CNBC TV18•24-09-2026, 11:48
NSE Earnings Poised for 15% CAGR Growth, Says Emkay's Avinash Singh
- •Avinash Singh, Deputy Head of Research at Emkay Global, projects NSE's profits to grow at over 15% CAGR in the medium term, calling it a decadal growth story for India's capital markets.
- •India's growing middle class, increasing public listings, and a maturing economy are expected to fuel years of earnings growth for stock exchanges, despite short-term regulatory and market volatility.
- •Emkay initiated coverage on NSE, forecasting nearly 13% annual earnings growth between FY27 and FY29, with Singh expecting this figure to climb higher.
- •While NSE saw a 4-5% post-listing gain, Singh emphasizes that future performance hinges on earnings, not initial enthusiasm, acknowledging potential short-term volatility from regulations, market swings, and new technology.
- •BSE's revenue and profit growth have outpaced NSE's over the past five years, driven by its strong entry into derivatives trading, particularly index options, though Singh notes it's too early to predict sustained outperformance.
Key Questions Answered
Emkay Global's Avinash Singh expects the National Stock Exchange's profits to grow at a compound annual growth rate exceeding 15% over the medium term, projecting an annual earnings growth of nearly 13% between financial years FY27 and FY29.
Over the past five years, BSE's annual revenue growth outpaced NSE's at 52% compared to 24.3%, while BSE's profit growth reached 77% against NSE's 23.4%. This surge was driven by BSE's strong entry into derivatives trading, specifically index options.
Emkay Global initiated coverage on the National Stock Exchange with a buy rating and a September 2027 target price of Rs 2,050, which implies a September 2028 price-to-earnings ratio of 38x.
