National Securities Depository Limited (NSDL) is in the spotlight following the release of its Q1 FY26 results, the first since its listing on August 6, 2025. The company reported a consolidated net profit of ₹89.63 crore, a 15% year-on-year (YoY) increase compared to ₹77.82 crore in the same quarter last year. However, the company's revenue from operations experienced a 7.5% YoY decline, falling to ₹312.03 crore from ₹337.29 crore in Q1 FY25.
Despite the revenue dip, NSDL's operational performance showed strength. The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) for the reported quarter stood at ₹115 crore, a 27% jump over the ₹91 crore recorded in the same period last year. On a standalone basis, the company's profit after tax (PAT) grew 24% to ₹83 crore, with revenue seeing a 19% increase to ₹161 crore. Operating expenses were up 15% YoY, reaching ₹81 crore compared to ₹70 crore in the previous year.
NSDL's demat account market share has also seen positive movement. On a run rate basis for Q1 FY26, the market share stood at 15.5%, an increase from the 9.4% incremental market share in Q1 FY25. As of June 30, 2025, the company had crossed the milestone of 4 crore accounts. In the unlisted market, the number of admitted companies in Q1 FY26 reached 10,392, giving NSDL an overall equity market share of 73.2%, up from 70.8% in Q1 FY25. NSDL also retained a dominant 86.6% share of total demat custody value.
The company's revenue streams include depository services, data management services, and banking services. During the quarter, NSDL earned ₹161 crore from depository business, ₹18 crore from database management services and ₹133 crore from banking services. A majority of the profit, ₹80 crore, came from the depository business, while database management and banking services contributed ₹3.55 crore and ₹1.73 crore respectively. The decline in Q1 revenue has been attributed to a slide in revenue from banking services, even as depository segment growth remained robust.
Ahead of the earnings release, NSDL shares closed with 1% gains on the Bombay Stock Exchange (BSE) at ₹1,288. The stock has experienced a significant increase, rising 61.1% from its initial public offering (IPO) price of ₹800. NSDL's initial public offering (IPO) was sized at approximately ₹4,012 crore and was oversubscribed 41.02 times. The portion reserved for Qualified Institutional Buyers (QIBs) was booked 104 times, the pie set aside for non-institutional investors was booked 35 times, and the shares for retail investors were booked 7.76 times.
Analysts have weighed in on NSDL's performance and future prospects. Gaurav Garg from Lemonn Markets Desk suggests a "HOLD" for investors who received allotments, emphasizing a long-term view. Garg also advises those who did not receive an allotment to await a market dip before considering a fresh entry, particularly given the current market volatility. Leading brokerages have issued bullish calls on NSDL stock. Centrum Broking maintains a Buy rating, citing strong fundamentals, a monopoly-like market position, and long-term growth potential in digital securities markets. Nuvama has also retained a Buy call, expecting further gains supported by earnings growth and market expansion.
NSDL's role as a SEBI-registered Market Infrastructure Institution is also noteworthy. The company provides services like demat operations, trade settlements, e-voting, pledge management, and corporate actions. As of March 2025, NSDL served 3.94 crore active demat accounts through 294 depository participants. Its subsidiaries, NSDL Database Management and NSDL Payments Bank, further extend its reach into e-governance and digital financial services.
