National Securities Depository Ltd. reported a 10% year-on-year increase in consolidated net profit to ₹983.05 crore for Q1FY27, compared to ₹901 crore in the corresponding quarter of the previous year. The securities depository's consolidated revenue from operations surged 66% to ₹5,166.26 crore from ₹3,120.43 crore in Q1FY26, driven primarily by a 136% jump in Banking Services revenue to ₹3,138.41 crore. On a standalone basis, NSDL's net profit rose 8% to ₹891.34 crore with revenue increasing 13% to ₹1,821.62 crore. The company's diluted EPS came in at ₹4.91, against ₹4.48 a year ago and ₹4.51 in Q4 FY26. Other income also contributed significantly, rising to ₹375.04 crore from ₹294.85 crore in Q1FY26. Total expenses rose to ₹1,023.70 crore from ₹809.30 crore, largely due to higher employee benefits and operational costs.
Despite strong revenue growth, NSDL's EBITDA margin contracted significantly to 19.54% from 30.51% year-on-year, reflecting the impact of higher-volume, lower-margin Banking Services revenue on the overall mix. The company's EBITDA stood at ₹1 billion compared to ₹952 million in the year-ago period, while EBITDA margins contracted to 19.54% from the earlier 30.51%, indicating operational efficiency challenges. The margin compression suggests increased costs relative to revenue growth, which could impact future profitability as the Banking Services segment drives majority of revenue growth. Against the March quarter's ₹103.91 crore, EBITDA slipped 2.84%, highlighting the quarter-on-quarter margin pressure.
The consolidated results reveal distinct performance trends across NSDL's three reportable segments. While the Banking Services segment drove the majority of revenue growth with ₹3,138.41 crore revenue and more than doubled year-on-year, it maintained relatively thin operating profit margins compared to the high-margin Depository business. The Depository segment generated ₹1,821.38 crore revenue with an operating profit of ₹800.10 crore, slightly down from ₹803.16 crore in Q1FY26, indicating stable but mature growth in this core business. The company onboarded six new Depository Participants during the quarter, expanding its network to 317 DPs supported by 57,768 service centres. NSDL's subsidiary, NSDL Database Management, is working through a regulator-mandated demerger of its insurance repository business into a standalone entity, following directions from IRDAI. The unit contributed ₹1.45 crore in revenue during the quarter and remains a small part of the subsidiary's overall business.
NSDL's Net Beneficiary Owner (BO) market share increased to 17.6% from 15.5% in Q1FY26, with total BO accounts reaching 4.56 crore as of June 30, 2026. The company's market share by total Demat Custody Value stood at 85.8%, with women accounts accounting for approximately 24% of incremental demat additions following the implementation of the Women Demat Plan effective April 1, 2026. The company added 14.7 lakh gross accounts (12.4 lakh net) during the quarter and CASA customers increased 1.7x from 28.3 lakh to 49.5 lakh. Additionally, NSDL Payments Bank continues to gain traction, currently ranking 6th as a Payee PSP app among the top 15 banks in the ecosystem. The market share in the Unlisted Equity segment stands at 71.3%, with 3,406 companies admitted to the platform during the quarter. The issuer base has crossed 115,000 issuers within the NSDL ecosystem.
The results were announced after market close, with NSDL shares closing 0.41% lower at ₹823.30 per share on Thursday. According to Bloomberg data, out of three analysts tracking the company, one maintains a 'buy' rating, one recommends a 'hold,' and one suggests 'sell.' The average 12-month consensus price target of ₹1,146.67 implies an upside of 5.4% from current levels. The divergence between revenue growth and operating profit margins across segments raises questions about how continued margin dilution from the high-volume, low-margin Banking Services segment will impact NSDL's long-term profitability and valuation multiples. The company continues to face litigation risks related to the Karvy Stock Broking Ltd matter, with civil appeals pending before the Supreme Court, while management maintains no liability attributable to NSDL citing compliance with SEBI's interim orders.
