India’s capital market system stands on two vital institutional foundations, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Both play an integral role in shaping the nation's financial architecture by facilitating investment, capital mobilization, and economic liquidity. However, the two entities differ significantly in scale, growth trajectory, operational dynamics, and financial performance.
The financial year 2024–2025 (FY25) was marked by a surge in retail participation, increasing algorithmic trading, and a structural shift toward financialization of Indian savings. This environment proved beneficial for both exchanges, pushing them toward record financial performance.
Yet, the contrast between the NSE and BSE became sharper, particularly when evaluated through key metrics such as revenue generation, operational efficiency, profitability, and cost structures. [View detailed breakdown of NSE’s FY25 Results!]
Total Revenue: NSE Dominates with Scale and Breadth
The National Stock Exchange generated total revenue of ₹19,177 crore in FY25, compared to the Bombay Stock Exchange’s ₹3,236.3 crore. This substantial gap reflects NSE’s commanding presence in the derivatives segment, where it holds an overwhelming share, approximately 99.9% in futures and over 87% in options.
On the other hand, BSE continues to show relative strength in the equity cash trading segment. However, cash market activity in India has not matched the explosive growth seen in derivatives, which are now the main engine of exchange-driven revenues. This structural divergence in segment focus has widened the revenue gap between the two entities.
Moreover, NSE has also diversified into data services, clearing, and technology platforms, further enhancing its top-line growth. These high-margin ancillary services provide consistent recurring income, in contrast to BSE’s more transaction-driven model.
While BSE is a listed company on Indian stock exchanges, NSE unlisted shares recently surged due to its performance [View Current Market Price of NSE Unlisted Shares] and more developments towards its potential IPO. [Know the latest NSE IPO developments]
EBITDA: The Operational Core and Profit Generation
| Metric | NSE (FY25) | BSE (FY25) |
| EBITDA | ₹12,647 crore | ₹1,778.7 crore |
| EBITDA Margin | 66% | 55% |
Both exchanges reported strong earnings before interest, tax, depreciation, and amortization (EBITDA) in FY25. However, the NSE’s EBITDA was over seven times greater than BSE’s. This stark difference reflects NSE’s scalable operating model, wherein revenue increases do not require proportional increases in operating expenditure.
The higher EBITDA margin of 66% for NSE versus 55% for BSE further illustrates this point. NSE benefits from its robust market infrastructure, advanced technology, and high-frequency trading volumes, which allow it to maintain lean cost structures.
In contrast, BSE, while improving its operating efficiency, still lags in revenue growth and trading volumes, limiting its ability to generate operating leverage on the same scale as NSE.
Net Profit & EPS: Financial Bottom Line and Investor Value
| Metric | NSE (FY25) | BSE (FY25) |
| Net Profit | ₹12,188 crore | ₹1,322 crore |
| Earnings per Share | ₹49.24 | ₹96.17 |
| Net Margin | 64% | 41% |
FY25 saw NSE recording a net profit of ₹12,188 crore, while BSE reported ₹1,322 crore, a significant increase from the ₹772 crore net profit it reported in FY24. This nearly 10-fold difference in profitability underlines the sheer economic power of NSE’s trading ecosystem.
Despite BSE showing higher Earnings Per Share (EPS), this is attributed to its smaller equity base. EPS alone, in isolation, does not reflect comparative profitability, as NSE’s retained earnings and reserves are far larger.
Additionally, NSE's net profit margin of 64% illustrates its ability to convert a large share of its revenue into bottom-line profits, compared to BSE’s 41%. The consistency and scale of NSE’s profit generation also allow it to reinvest, diversify, and distribute capital efficiently.
Cost Efficiency and Expense Management
| Metric | NSE (FY25) | BSE (FY25) |
| Total Expenses | ₹6,530 crore | ₹1,458 crore |
| Expense/Revenue Ratio | 34% | 45% |
A critical differentiator between the two exchanges is cost efficiency. NSE, despite being a significantly larger entity, reported an expense-to-revenue ratio of just 34%, while BSE’s was approximately 45%.
This suggests that NSE is far more successful in containing operating costs relative to income. The exchange’s investment in automation, cloud-based infrastructure, and integrated clearing systems has reduced marginal costs as volumes scale. In essence, as more trades happen, the incremental cost per transaction continues to decline.
Conversely, BSE, while lean in several operational aspects, incurs relatively higher fixed and semi-variable costs as a percentage of revenue. This impacts its ability to generate similar profit margins despite growing revenues.
Strategic Observations: Positioning in the Indian Financial Ecosystem
Market Share & Trading Volumes
NSE has maintained its near-monopoly in derivatives, a segment that has become the largest contributor to exchange profits. With volumes soaring in index options and futures, this has provided NSE with a stable and rapidly growing revenue stream. Meanwhile, BSE is repositioning itself in segments like SME listings, debt instruments, and mutual fund transaction platforms, where it continues to make progress.
Retail and Institutional Penetration
Both exchanges have over 21 crore registered investors, but NSE remains the dominant player among institutional participants, proprietary traders, and foreign investors. BSE has been more focused on retail infrastructure, especially through its BSE Star MF platform, which saw over 663 million mutual fund orders in FY25.
Technological Infrastructure
NSE has consistently invested in cutting-edge technology, allowing it to handle over 5 lakh orders per second, a capability unmatched in the Indian context. Its performance reliability has made it the default platform for high-frequency and algorithmic traders. BSE, too, has invested in modernizing its systems but is still playing catch-up in terms of raw processing power and order-handling capability.
Conclusion: A Diverging Growth Story in FY25
The financial year FY25 presents a tale of two exchanges, both growing, both profitable, yet vastly different in scale, strategic orientation, and market power.
The Bombay Stock Exchange, though smaller, is showing signs of transformation, particularly in non-equity segments like mutual funds and SME platforms. Its year-on-year growth in revenue and net profit indicates it is moving in the right direction, though it remains behind NSE in terms of overall market penetration. The National Stock Exchange continues to dominate India's financial markets, backed by overwhelming trading volumes, robust profitability, diversified income streams, and best-in-class operational efficiency, especially with the buzz around its potential IPO that could influence the NSE Unlisted Shares as well.
Our blog provides insightful information about unlisted shares, offering a deeper understanding of how these assets work, their potential benefits, and the risks involved. Whether you're new to unlisted shares or looking to expand your knowledge, we cover topics such as investment strategies, valuation methods, market trends, and regulatory aspects. Stay updated with expert tips and guides to navigate the unlisted share market effectively.
