Market Brief: Indian Financial Intermediaries Q3 FY26 Indian stockbroking and exchange operations reached a major inflection point in the third quarter of fiscal year **2026**. Record-breaking trading volumes and high-leverage participation across derivatives drove a massive surge in profitability. Exchange Performance Highlights **BSE Limited** reported a standout performance for the quarter ending December **2025**. Consolidated net profit skyrocketed by **174.7%** year-on-year, reaching **₹596.6 crore**. Total consolidated income for the exchange climbed to **₹1,334 crore**, up from **₹829.4 crore** in the previous year. This growth was fueled by a **86%** jump in transaction-led revenue, which hit **₹952.6 crore**. The **National Stock Exchange (NSE)** showed a strong recovery after a volatile start to the fiscal year. Net profit for the quarter rose **15%** sequentially to **₹2,408 crore**. While yearly comparisons remained under pressure, a **15%** growth in equity options volumes signaled a return of retail momentum. Broking and Participation Trends Retail participation remains a primary growth engine. Registered investors on the **BSE** have now reached **23.8 crore**. The average daily notional turnover in equity options on the exchange hit **₹210 lakh crore**, effectively doubling from the **₹105 lakh crore** recorded in the same period last year. Major broking houses are seeing mixed results as operational costs rise. **Angel One** reported a slight **4.5%** dip in net profit to **₹268.7 crore**, despite a **5.8%** rise in revenue. Broking firms are increasingly relying on interest income from margin funding and high-volume leveraged trades to offset rising client acquisition costs. Primary Market and Corporate Services The IPO sector maintained its historic pace. During the quarter, **99** new equity listings were completed across mainboard and SME platforms, collectively raising **₹97,657 crore**. Exchange revenue from services to corporates remained a stable pillar, contributing **₹156.4 crore** for **BSE**. This recurring income provides a crucial buffer against the cyclical volatility of the cash market. Key Financial Indicators * **BSE Net Profit Margin:** Expanded to **45%** from **26%** last year. * **NSE EBITDA Margin:** Recovered to **73%** in Q3. * **IPO Capital Raised (2025):** Reached a record **₹1.76 lakh crore**. * **Total PSB Profits:** Public sector banks saw an **18%** profit jump to **₹52,603 crore**, further supporting market liquidity. Market infrastructure institutions are currently benefiting from high operating leverage. As trading volumes pass critical thresholds, incremental revenue is converting into profit at an accelerated rate. Increased activity in currency derivatives and mutual fund processing platforms continues to diversify the income mix for the sector.