Despite controlling nearly 86% of India's dematerialised wealth, NSDL has failed to deliver the returns investors expected. According to reports from The Economic Times, the stock trades below its listing price and at roughly 50% of the multiple it reached in the months post-listing. A ₹1 lakh investment in the IPO became about ₹1.10 lakh on listing day and is currently worth approximately ₹1.04 lakh. Most retail buyers who bought at listing-day close saw their ₹1 lakh investment, including dividend, worth about ₹88,000, compared to ₹99,750 for a Nifty index fund.
As reported by The Economic Times, NSDL charges companies ₹11 per folio or a minimum fee based on nominal value of securities, ranging from ₹5,000 to ₹75,000. The company maintains approximately 4.6 crore demat accounts and 14 crore active folios, generating about three folios per account. In FY26, the depository's standalone revenue reached ₹704.7 crore with ₹348.8 crore EBIT, while the payments bank contributed ₹746.8 crore revenue but only ₹20.6 crore EBIT. The annual custody fee, representing half the depository's revenue, has increased from 42% of standalone revenue in FY25 to 50% in FY26.
According to The Economic Times, NSDL's FY26 consolidated EBITDA margin was approximately 28%, significantly below peer CDSL's 52% margin. The depository alone operates at close to 54% margin, but the payments bank generates more revenue than the depository while earning almost no profit. The company capitalised approximately ₹106 crore of technology capex in FY26 and expects similar levels in FY27 as it completes its technology overhaul. This has increased depreciation and related costs, though management expects the investment cycle to ease from FY28.
As reported by The Economic Times, FY26's growth was driven largely by government mandate adding about 22,000 unlisted companies to NSDL's register in the first half, with registrations and revenue rising together. However, new registrations fell from over 11,000 in September to 4,446 in December as rules changed with higher small-company threshold exempting more companies. Over 1.3 lakh unlisted companies have paid the ₹15,000 joining fee, with recurring fees of ₹5,000-9,000 generating roughly half of annual custody fees. The average NSDL account holds approximately ₹1.17 crore versus ₹4.6 lakh at CDSL*.
According to The Economic Times, NSDL added a record 21 depository participants in FY26, including discount brokers, while active folios rose from 11.5 crore to 14 crore. Its share of new demat accounts reached 17.6% in Q1 FY27, up from 15.5% a year earlier. The company faces the same regulated pricing structure as CDSL, but trades at a 44 times earnings versus CDSL's 61 times. Despite its market dominance and higher-value custody base, the business growth has clearer limits with the unlisted company demat wave having peaked and SEBI tariffs remaining unchanged for 11 years.
