Financial Performance Evaluation of NSE AND BSE: A Comparative Assessment of Revenue Structure, Operating Efficiency, and Profitability (2020–2025)

Author:Shamshad Khan, Arvind Kumar Yadav

Abstract:
Stock exchanges play a crucial role in today’s financial systems by providing platforms for raising capital, enhancing market liquidity, and fostering economic growth. The National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) in India have witnessed a sea change in the last decade due to technological advancements, regulatory reforms and increasing retail participation. They are regulated in the same way but differ in their revenue models, operating efficiencies and profitability. The present study has made a comparative analysis of the financial performance of NSE & BSE for the period 2020-2025 with the help of secondary data collected from the annual reports & financial statements. Various approaches such as trend analysis and comparative ratio analysis are studied for key performance indicators such as revenue growth, operating margin, and return on equity. Initial results show NSE is operationally more efficient and profitable mainly due to its dominance in the equity derivatives and technology-based product market. By contrast, BSE has focused on innovations in SME listings and mutual fund platforms, but its scale is small. This research adds to the literature on financial market infrastructure by providing insight to regulators, investors and researchers.

Keywords:National Stock Exchange, BSE Limited, Financial Performance, Revenue Structure, Operating Efficiency, Profitability Analysis, Financial Ratios, Capital Market, Stock Exchange, India.

DOI:10.46333/ijtc/15/1/6

International Journal of Trade & Commerce (Vol: 15 Issue:1)