NSE Q4 FY26 Results, ₹35 Dividend, Unlisted Share at ₹2,170 — The Contradiction Decoded (2026)

Reviewed by Kanishk Dev Bangia, NISM Series XV Certified Research Analyst

Last Updated: May 2026 | Reg. No: NISM-202300182946

This is the paradox that most retail investors have been perplexed about this week. For the financial year ending FY26, the National Stock Exchange of India reported annual post-tax profits of ₹10,302 crore, which represents a reduction of about 15% compared to the ₹12,188 crore reported the previous year. As can be expected, the full-year figure presents an actual loss for the company. Yet the stock price of the unlisted firm has surged by nearly 10% in two days to ₹2,170, a figure that's risen by nearly 18% this year. Same firm. Same figures. Two conflicting signals.

What is different, however, is that this time around, the market isn't viewing the PAT figure from FY26 in a vacuum. Instead, the ₹35 dividend on a face value of ₹1 (or a 3,500% dividend rate) being paid, along with the 8.3% YoY rise in Q4 FY26 profit, along with the scheduled DRHP filing mid-June 2026, as well as the final clearance of the SEBI case, means that there's far more going on here than meets the eye. This blog will walk you through all the layers, in the order in which any analyst would look at it.

TL;DR

1. The Contradiction in One Frame

The market looks forward. The PAT drop of FY26 was an aberration driven by higher core SGF contribution, the ₹1,388 crore settlement charge for the regulator paid in October 2025, and higher investments in technology infrastructure. None of them will recur and dent FY27 profitability. The Q4 number is 8.3% higher YoY to stand at ₹2,871 crore (as per the report from Business Standard on the results).

The rally in the unlisted stock has to be understood on the backdrop of:

1. The Q4 number is an indicator of the operating trend; while the PAT decline for FY26 is just a rear-view with regulatory baggage.

2. The ₹35 dividend clearly shows the management is comfortable with payouts, reflecting their confidence about FY27 profits

3. IPO clock is ticking. Given the imminent DRHP filing, there has been re-rating in the unlisted price towards the expected listing valuation range and away from quarterly earnings.

Depending on the lens through which the earnings statement is viewed, it can be good news or bad news. Here is what makes all the difference.

2. The Q4 FY26 Results: Digging into the Details

For the quarter ending 31 March 2026, the net profit was reported at ₹2,871 crore compared to ₹2,650 crore during the corresponding quarter last fiscal – marking an 8.3% YoY increase. Revenue from operations saw an 11% YoY increase, growing to ₹4,832 crore driven primarily by growth in the equity derivatives category (despite SEBI's 'true to label' F&O reforms that reduced weekly expiries) and substantial contributions from colocation plus data subscription revenue.

The EBITDA margins stood well above the 73% level with only minor QoQ changes. Of all the expense items that grew in FY26 vis-à-vis FY25, technology infrastructure and regulatory/SGF contributions were two items that grew the most in terms of their structural nature and have been called out by the exchange to be a multi-year trend. IPO Guru's result analysis breaks down the segment performance in much more detail.

Most significant for operations during Q4: cash equivalents on the balance sheet have been kept comfortably over ₹15,000 crore despite FY25-26 regulatory settlement costs. The balance sheet liquidity allowed the exchange to pay off its ₹35 per share dividend without stress on working capital.

3. The FY26 Full Year Story – Where the Decline Originated

Let us then move on to the aspect of the outcome that, in itself, may look somewhat disappointing. While FY26 PAT is at ₹10,302 crores against FY25 PAT of ₹12,188 crores, that represents a decline of around ₹1,886 crores, or 15% year-over-year. That is real money, and the reason behind this is also real:

• SEBI Colocation Case Settlement Payment. Following the settlement of a decade-long colocation dispute with SEBI in October 2025, there was an associated payment of around ₹1,388 crores. The non-recurring nature of the payment shows up in the FY26 P&L. The case being closed marked the end of what can be considered the single biggest regulatory headwind for the company for close to a decade.

• Increase in SGF contributions. Following the changes to the derivative regulations by SEBI in 2024, the Settlement Guarantee Fund (SGF) contribution is now higher. It’s a recurring expense from here on, but its incremental impact is felt more in FY26.

• Increased Capex and Surveillance related amortization.

Without even considering the settlement payment, the FY26 PAT is close to ₹11,690 crore – below FY25 numbers, yet the gap reduces to less than 5% as opposed to the earlier reported 15% difference. Modelling the upcoming FY27, analysts seem to assume that the settlement impact will be factored in by now.

4. The Dividend Dynamics - Understanding the 3,500% Payout Ratio

The payout ratio of 3,500% on face value of ₹1 is mathematically impressive, yet purely artificial – since the face value is just an arbitrary unit and has no practical bearing. The important point here for an investor would be the rupee amount paid relative to the current unlisted price of the stock.

At the post-earnings stock price of ₹2,170, the dividend of ₹35 per share works out to a trailing yield of around 1.6%. This is quite a common yield for this company based on its dividend history which has been rewarding the shareholders with decent returns. As seen above, the dividend will work out to about ₹8,650 crore of the money coming back to the shareholders (total FY26 PAT at ₹10,302 crore).

The record date for the dividend payment is expected to be somewhere in late June or early July 2026, depending upon when the company holds the AGM and pays the dividend within 30 days of the same. Those investors who have the shares of the company in demat form on the record date are eligible for the payment. The Business Today tracking of the post-earnings stock prices found out that the dividend announcement is the most important reason behind the price movement.

In case, any investor wants to see the latest quote along with the cum-dividend window period, they can track the same on NSE's unlisted share tracker portal – Unlisted Axis.

5. Why was there a Rise in the Unlisted Price Even Though There Is a Fall in FY26?

This is what the analysis revolves around. Four reasons could have driven this:

(a) Forward valuation revision. This can be seen as the case when the market takes the payment towards the settlement as a one-off event. FY27 PAT valuation model by the Street ranges from ₹13,500 to ₹14,000 crore. Using forward valuation method, forward P/E of the unlisted stock being traded for ₹2,170 works out to about 36x-38x which is aligned with how comparable international businesses are valued.

(b) Dividend signal. By approving of a dividend distribution ratio of 84%, the board has signaled their satisfaction on the earnings trend. If they had been concerned about the revenue trends for FY27, it wouldn't make sense to declare such a high dividend.

(c) Premium to fair value due to IPO. The DRHP is expected to be filed sometime around 15th June 2026, with listing expected in Q3 FY27. Unlisted shares of IPO-bound businesses tend to trade at a premium to fair value in the 3 to 6-month period before the DRHP filing, derating thereafter, followed by re-rating after IPO if the same is successful.

(d) Scarcity of floats. The true secondary availability of the unlisted stock is constrained. The bulk of old investors who own the stock include either institutional or strategic investors (banks, insurance companies, mutual fund companies – many of which already had the stock before 2017), and they do not have an incentive to sell before the IPO event.

The "how to buy" tutorial should be used by anyone seeking to gain insight into buying an interest in unlisted stocks.

6. The IPO Backdrop – State of Affairs by May 2026

Below is the IPO timeline according to market reports and company disclosures:

• DRHP Filing: Target to file DRHP around 15 June 2026. The market regulators have approved the investment bank syndicate led by Kotak, Axis Capital, JM Financial, Morgan Stanley, ICICI Securities, and more.

• SEBI Observations: Usually takes around 60 to 90 days post DRHP filing. Thus SEBI approval is likely sometime during September/October 2026.

• RHP filing & IPO Issue: Expected in Q3 of FY27 i.e. October-December 2026. Offer for Sale (OFS) approach is expected to be used with a smaller fresh issue. Exchange plans to use offer for sale method where existing investors sell out stakes.

• Listing: Expected within Q3 of FY27 at both exchanges with standard self-listing approach (Exchange would be listed at BSE while NSE uses other route).

The SEBI settlement in October 2025 would be the most important gate that had to be cleared for the DRHP filing to proceed. The runway is now operationally clear. There are still some unknowns regarding (a) the size of the offer, (b) the pricing band, and (c) the anchors for the issue.

Any investor wanting to invest in this IPO once its subscription opens should have an active demat account with a UCC registered broker; see here for more details on the demat process of unlisted stocks.

7. What is Next – The Calendar Up to Q3 FY27

Over the next 6-9 months, there will either be a re-rating of the existing unlisted price or it could stay where it currently is. Events that should be monitored:

1. DRHP filing (June 2026). This will have all details of offer size, identities of OFS sellers, whether there is any new money issuance involved, full audited results for FY26 and regulatory disclosure block.

2. SEBI observations + amendments (July-September 2026). Note if there are any restrictions imposed on offer structuring and governance.

3. RHP filing (September-October 2026). Contains the price band.

4. AGM & Dividend Record Date (June-July 2026). Cum-Div period is crucial when choosing the right entry timing.

5. Allocation of anchor investors (shortly before the opening). Reflects the interest from institutions.

6. Listing date and first 30 days price action. Sets the reference point against which the unlisted price converges.

In case of discounted offer compared to the prevailing unlisted price (which is the usual case), the unlisted price usually softens by 5-15% ahead of the issue, reflecting this phenomenon best in the past IPOs such as LIC, Mankind, Hyundai India, NSDL.

Glossary: Any terminology used in relation to the above events can be explained under the unlisted shares glossary available on Unlisted Axis.

8. Education Disclaimer

The information provided here is purely educational in nature and does not serve as personalized investment advice. The author is certified from NISM Series XV but is not registered Research Analyst with SEBI, and hence nothing contained in this post shall be interpreted as an opinion on direction of a stock being discussed by the author. Readers who invest in stocks similar to these usually analyze their business potential by reading through the DRHP fully and independently modeling future earnings.

Frequently Asked Questions

Question 1: Is NSE listed on any stock exchanges currently?

Answer- Not really. By May 2026, National Stock Exchange of India Ltd. itself is not listed on any stock exchanges. Shares of the entity are traded in the unlisted secondary market via SEBI-registered dealers/ platforms. After completion of the DRHP filing and obtaining SEBI's approval, listing of the entity is expected in Q3 FY27.

Question 2: When will be the listing date of NSE IPO?

Answer-According to the timeline as of May 2026: The DRHP filing will take place around 15 June 2026; SEBI observations will be received in September-October 2026; followed by filing of RHP. NSE listing is expected in Q3 FY27 (October-December 2026). All dates are subject to management estimates.

Question 3: How do you know about the unlisted price of NSE stock?

Answer-The NSE unlisted stock price is based on dealer quotes and changes slightly across different platforms. A good way to track it is through a price tracker that provides an unlisted price based on quotes of more than one registered dealer. Use NSE unlisted share price tracker available on Unlisted Axis website.

Question 4: What would be the record date for the ₹35 dividend?

Answer- The precise date of the record has yet to be announced. According to the timeline of a dividend after AGM, the record date should occur either in late June or early July of 2026. The notice will become available through the corporate actions announcement of the firm. Those holding the demat share before that day shall receive dividends.

Question 5: Does the dividend point out undervaluation of NSE?

Answer- The payment of dividend itself does not indicate the valuation of the company since this is a capital allocation decision rather than a valuation one. The payout ratio of approximately 84% for FY26 reveals that the management sees no problem paying off since of the balance sheet condition. The valuation requires its own earnings forecast model.

Question 6: Can I apply for the IPO NSE?

Answer- Once the IPO is officially opened after the release of the RHP, then all retail investors with PAN and demat account and having a UPI-enabled bank account shall be able to take part in the subscription.

Applications happen during the 3-day issue window. Application is open to all eligible categories — retail, HNI, QIB, employee — subject to the prospectus terms.

Question 7: Where do I hold my NSE Unlisted shares – demat or physical?

Only demat. As per SEBI guidelines, since 2018, off-market transactions of unlisted shares happen only via the dematerialized route. Through the demat account of the seller, the shares get transferred to the buyer's demat account off-market via payment. Physical form of share certificates cannot be traded. It will be the broker/platform from whom you make the trade who will execute off-market transaction through a DIS slip.

Question 8: Has the settlement issued by NSE and SEBI concluded the issue completely?

Yes, the matter related to co-location was settled with NSE as of October 2025 via no admission consent settlement with a payment of around ₹1,388 crore. This is now a concluded matter as per the SEBI Settlement Regulations 2018 which is now binding. Now the major overhang in terms of regulation of this entity is sorted out once for all.

Disclaimer:

This is written for educational and informational purposes only. Nothing here constitutes investment advice or a recommendation to buy or sell securities. All data is sourced from publicly available information. Investments in securities markets are subject to market risks — please read all offer documents carefully before investing.