Zerodha founder and CEO Nithin Kamath has described the National Stock Exchange (NSE) as a 'cash generation and distribution machine' ahead of its anticipated ₹30,000-crore public issue. Kamath pointed out that NSE earned over ₹10,300 crore in fiscal year 2026 and returned a significant portion of these earnings to shareholders, underscoring a rare corporate model in India.
Kamath emphasized NSE's ability to generate substantial cash flow and consistently distribute dividends, a practice uncommon among Indian companies. He highlighted that the exchange's business framework enables it to maintain high profitability while rewarding investors, setting it apart from many peers in the market. This observation comes as NSE prepares for one of the largest public offerings in the country.
The significance of NSE's cash generation and distribution model lies in its contrast with typical Indian corporates, which often reinvest earnings rather than returning them to shareholders. Kamath's remarks shed light on NSE's unique position as a financially robust entity that prioritizes shareholder returns, which may influence investor sentiment and set a benchmark for other companies considering public listings.
NSE's upcoming public issue, valued at ₹30,000 crore, is among the largest in recent years, reflecting confidence in its financial health and governance. The exchange's reported earnings of over ₹10,300 crore in FY26 provide a concrete basis for its valuation and appeal to investors, according to livemint.com.