The two listed depositories reported contrasting April-June quarter results that revealed different growth trajectories. NSDL's topline jumped 66% year-on-year to around ₹520 crore, with the banking services arm more than doubling due to a one-off card onboarding project. However, operating margins slipped to under 20% from over 30% a year ago, and net profit grew a modest 10% due to costs rising nearly 92% annually. CDSL's revenue rose 13% year-on-year to roughly ₹290 crore, with its core depository business growing 11%, while profit after tax climbed 15% YoY and 47% sequentially. Recent Q3FY25 data shows CDSL's consolidated revenues decreased 16.8% quarter-on-quarter but grew 26.3% year-on-year, with net profit increasing 20.8% YoY despite a 19.9% QoQ decline.
According to Motilal Oswal's latest research report dated August 03, 2026, CDSL's operating revenue rose 13% YoY/11% QoQ to ₹2.9 billion, with standalone depository income growing 11% YoY/16% QoQ to ₹2.5 billion. Operating expenses grew 21% YoY/6% QoQ to ₹1.5 billion, driven by a 20%/21% YoY increase in employee costs and other expenses. EBITDA rose 6% YoY/18% QoQ to ₹1.4 billion, resulting in an EBITDA margin of 47.1% compared to 50.4% in Q1FY26 and 44.4% in Q4FY26. The brokerage expects revenue/EBITDA/PAT CAGR of ~11%/8%/10% over FY26-28.
Motilal Oswal maintains a Neutral stance on both stocks with specific target prices. For NSDL, the brokerage has set a target at around ₹930, implying roughly 14% potential upside, citing the expanding banking services arm and rising recurring depository income. CDSL carries a Neutral tag with Motilal Oswal noting that continued investments in technology and manpower could restrict operating leverage gains. Geetanjali Kedia from SPTulsian Investment Advisers believes CDSL currently has an edge, citing stronger quarterly performance and CDSL's 80% market share compared to NSDL's 40x PE multiple. However, Motilal Oswal's latest report on CDSL dated August 03, 2026, sets a target price of ₹1,200 based on 45x FY28E P/E, reflecting updated valuation metrics.
Technical analysts from Anand Rathi Share and Stock Brokers provide contrasting chart patterns for both stocks. CDSL appears technically stronger, trading close to its 21-day EMA and holding firmly above the crucial ₹1,260 support zone, while NSDL continues to trade below its 21-day EMA. The analyst notes that CDSL faces resistance in the ₹1,350-1,375 zone with support around ₹1,260 and ₹1,180, while NSDL's immediate resistance lies between ₹830-840 with support at ₹800 and ₹775. Both stocks show subdued momentum indicators, but CDSL's technical setup appears better positioned for recovery. Recent trading data shows CDSL shares trading at ₹1,318-1,328 range with a 52-week high of ₹1,673.70 and low of ₹1,116.30, reflecting current market sentiment.
