India’s two securities depositories, National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL), announced their Q1 FY26 results, showcasing contrasting performance trends. NSDL continues to expand its market share after a blockbuster IPO, while CDSL retains its dominance in account volumes despite growth moderation.
India’s capital markets are witnessing an intense battle between its two securities depositories — National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). With rising retail participation, record demat account openings, and increasing IPO activity, these two institutions have become vital pillars of market infrastructure. The recent Q1 FY26 earnings of both companies offer fresh insights into how they are positioned in this fast-growing ecosystem. While NSDL is riding the momentum of its blockbuster IPO and expanding custody dominance, CDSL continues to anchor retail participation with its unmatched account base.
National Securities Depository Limited (NSDL), headquartered in Mumbai, is India’s first and largest depository by custody value. Established in 1996, NSDL provides electronic securities holding and settlement services, ensuring efficiency and transparency in the capital markets.
The company recently made a strong stock market debut in July 2025 with an IPO priced between ₹760 and ₹800. The offering was fully subscribed within hours, and post-listing, the stock surged nearly 80% above its issue price, crossing ₹1,425 in just a few sessions.
In its first quarterly results after listing, NSDL reported consolidated revenue of ₹312 crore, down 14% sequentially but up 19% year-on-year. Depository income fell slightly by 3% from the previous quarter, yet operating efficiencies helped the company improve profitability. Net profit rose 8% quarter-on-quarter to ₹89.6 crore, while EBITDA increased 4% to ₹95.2 crore. EBITDA margin also strengthened to 30.5% compared with 25.1% in Q4 FY25.
Also Read: NSDL Faces Market Jitters After Q1 Earnings Release
Importantly, NSDL’s market share in demat accounts jumped from 9.4% a year ago to 15.5%, crossing the four-crore milestone. In terms of custody value, NSDL maintained its leadership with an 86.6% share, reaffirming its strategic dominance in high-value securities.
Central Depository Services Limited (CDSL), also headquartered in Mumbai, is the second major depository in India. Established in 1999, it is known for its retail-friendly platform, wide network of depository participants, and cost-efficient services that have helped it capture the bulk of India’s growing demat account base.
For Q1 FY26, CDSL reported consolidated revenue of ₹259 crore, a 15.6% sequential rise, led by higher issuer revenue and a rebound in transaction income. Net profit was ₹102 crore, slightly above the March quarter figure of ₹100 crore, though it showed a near 24% decline on a yearly basis.
EBITDA grew by 20% to ₹130.6 crore, with margins improving to 50.4% from 48.6% in the prior quarter. While the pace of new demat account additions slowed to 5.7 million, compared with 6.4 million in Q4, CDSL retained its dominant leadership in retail participation with an 84% market share in total accounts.
Market Impact and Valuation Outlook
The Q1 FY26 earnings signal a shifting competitive landscape in India’s depository sector. NSDL’s rapid rise in demat market share, coupled with its superior custody value dominance, is pushing investors to re-rate the stock at a premium. At current levels, NSDL is trading around 70–79× price-to-earnings (P/E) multiple, reflecting high-growth expectations post-IPO.
Also Read: IPO Clock Ticking: Should You Trust NSDL or Bet on CDSL?
CDSL, meanwhile, trades at approximately 66× P/E, offering a relatively moderate premium compared to NSDL. Despite slowing account additions, CDSL continues to enjoy unmatched retail strength, making it a stable long-term player.
From a market perspective, NSDL appears to be positioned as a growth stock with stronger momentum in custody value and institutional preference, while CDSL is being viewed as a value play with consistent retail-driven earnings visibility.
For investors, the key watchpoints in the coming quarters will be:
- Whether NSDL can sustain its pace of account growth and premium valuation.
- How CDSL defends its retail market dominance amid intensifying competition.
- The impact of regulatory changes and IPO pipeline activity on transaction income.
Both companies remain critical pillars of India’s capital market infrastructure, and their performance will continue to be closely tracked as retail participation in equity markets surges.
READ MORE ON