The recent enthusiasm surrounding National Securities Depository Limited (NSDL) appears to have paused following the release of its Q1 FY26 results, which saw the company’s shares dip nearly 5% during Wednesday’s trading session.
,investors are reassessing the firm’s near-term growth prospects in light of mixed operational performance.
NSDL’s revenue from operations declined 23% year-on-year to Rs 312 crore in the quarter ended June 30, 2025, down from Rs 337 crore in Q1 FY25, and 14% lower sequentially compared to Rs 364 crore in the preceding quarter.
Despite the dip in top-line performance, the company posted a consolidated net profit of Rs 90 crore, marking a 15% increase from Rs 78 crore a year earlier, while profit after tax grew nearly 8% sequentially from Rs 83 crore in Q4 FY25.
EBITDA surged 27% year-on-year to Rs 115 crore, driven by operating efficiencies that helped offset the impact of a 15% increase in operating expenses, which rose to Rs 81 crore from Rs 70 crore in the previous year.
On the business front, NSDL continues to solidify its market leadership. Its demat account market share improved substantially to 15.5% from 9.4% in Q1 FY25, aided by crossing the significant milestone of 4 crore demat accounts as of June 30, 2025.
In the unlisted securities space, NSDL saw growth as well, with 10,392 companies admitted in Q1 FY26. The company’s equity market share rose to 73.2% from 70.8% a year ago, underscoring its dominant presence across key market segments.
The quarterly performance comes on the heels of NSDL’s landmark initial public offering (IPO) in early August 2025, which raised Rs 4,011.6 crore through an offer-for-sale of 5.01 crore equity shares priced between Rs 760 and Rs 800 per share.
The IPO was oversubscribed by over 41 times overall, with institutional investors particularly enthusiastic, signaling strong market confidence in NSDL’s role as India’s largest securities depository.
However, the dip in share price following the Q1 results suggests investors are weighing the company’s short-term revenue headwinds against its long-term growth potential. The sequential revenue decline and rising operational expenses highlight challenges in maintaining top-line momentum, even as the company continues to expand its customer base and deepen market penetration.
Looking ahead, NSDL’s ability to sustain profitability while navigating fluctuating revenues and evolving market conditions will be critical in justifying its premium valuation.
Its dominant market position and steady growth in demat accounts provide a solid foundation, but investors will be closely monitoring how the company manages costs and leverages new business opportunities to drive revenue growth in the coming quarters.