National Securities Depository Limited (NSDL) delivered robust sequential growth in Q1 FY27, with net profit rising 9.1% to ₹98.3 crore compared to ₹90.1 crore in the previous quarter (Q4 FY26). According to latest reports, the company demonstrated strong operational efficiency with revenue surging 12.7% quarter-on-quarter to ₹516.6 crore, significantly outpacing the previous quarter's performance. The sequential growth was primarily driven by a sharp increase in other income, which jumped 54% QoQ to ₹43.9 crore, providing a key boost to the bottom line.
The company's operating profitability came under pressure during the quarter, with EBITDA declining 2.9% QoQ to ₹100.9 crore and EBITDA margin contracting 314 basis points to 19.5% from 22.7% in the previous quarter. As reported by Business Standard, this pressure was largely due to weaker profitability in non-depository businesses. Digital banking EBIT dropped 45% QoQ to ₹3.3 crore, while database management EBIT fell 44% to ₹3.2 crore. However, depository EBIT increased modestly to ₹80 crore during the quarter.
NSDL's revenue growth was driven by healthy performance across both core business segments. Depository revenue rose 6.7% sequentially to ₹182.1 crore, while digital banking revenue increased 17.7% to ₹313.8 crore, demonstrating strong momentum in the company's diversified business portfolio. The company's operational metrics remained robust, with custody value increasing 12.1% QoQ to ₹535 trillion and incremental beneficiary owner (BO) accounts rising to 12.4 lakh from 12 lakh in the previous quarter.
NSDL maintained its strong market position during the quarter, with overall market share remaining broadly stable at 69.9% while its share in the unlisted equity segment stood at 72.4%. The company's Net Beneficiary Owner (BO) market share increased to 17.6% from 15.5% a year earlier, with the total number of BO accounts reaching 4.56 crore as of June 30, 2026. The company's ability to maintain profitability while achieving significant sequential revenue growth demonstrates effective business execution and market positioning in the competitive financial services landscape, even as operating profitability faced some pressure from non-depository business segments.
