1. At a Glance
National Securities Depository Ltd (NSDL) is the original gangster of India’s demat revolution — the granddaddy that turned paper shares into digital assets while most of India was still figuring out dial-up internet. As ofNovember 2025, the stock trades around₹1,136, down10.9% in three months, giving the company amarket cap of ₹22,730 crore. Despite the mild correction, this Market Infrastructure Institution (MII) continues to flex aP/E of 66.4x— higher than your average Bollywood actor’s ego.
The company posted₹400 crore revenueand₹110 crore PATin the latest quarter (Sep FY26), marking a12.2% YoY rise in salesand14.8% YoY profit growth. ItsROE sits at 17.8%, whileROCEchills at23.6%, showing NSDL earns more on capital than most startups earn on hype. With negligible debt (₹19 crore, Debt-to-Equity 0.01), this company runs cleaner books than a freshly audited government scheme.
But wait — what’s so hot about a company that just holds other people’s money in digital lockers? Oh, my friend, NSDL doesn’t just store securities; it monetizes every byte of your holding.
2. Introduction
Think of NSDL as the invisible infrastructure of Indian capitalism — the engine room under Dalal Street’s glimmering floor. While brokers scream “Buy!” and “Sell!” on your trading app, NSDL quietly charges fees for maintaining every single demat, every corporate action, every pledge, and every transaction you make. It’s the kind of business that gets richer as everyone else justlogs in.
Incorporated in2012, NSDL is technically young but institutionally ancient — an avatar of the original depository set up in the late 1990s to end the chaos of physical share certificates. It’sSEBI-registered, systemically important, and practically indispensable to the capital market ecosystem.
By FY25, NSDL managed a mind-bending₹70,167.65 billion (₹70.1 lakh crore)in assets for individuals and HUFs, commanding67.9% of India’s total dematerialized assets. To put that in context — if NSDL’s custody holdings were GDP, it would outsize Japan. The company now boasts39.45 million active demat accounts, serviced through294 depository participantsacross99.34% of Indian pin codesand194 countries.
Ever wondered who actually “keeps” your shares when you buy on Zerodha? Yep, that’s NSDL. It’s the middleman that never takes risk but charges everyone in the chain. If capitalism were a cricket match, NSDL is the umpire — doesn’t play, doesn’t bat, but gets paid for every ball bowled.
3. Business Model – WTF Do They Even Do?
NSDL’s business model is the financial equivalent of running a toll booth on a national highway — the more traffic, the more money. The company earns revenue fromannual custody fees,account maintenance, andtransaction feesfrom bothissuersanddepository participants (DPs).
Every demat account, every transfer, every IPO allotment — NSDL takes a slice. It’s also expanded beyond depository services into digital platforms through subsidiaries:
- NDML (NSDL Database Management Ltd): Offers e-Governance and KYC systems to regulators and financial institutions. Think of it as Aadhaar for capital markets.
- NPBL (NSDL Payments Bank Ltd): Handles digital banking, prepaid cards, UPI, AEPS, micro-ATMs, and distribution of third-party financial products.
In essence, NSDL’s empire spans:
- Depository Operations (43.56%)– its core cash cow,
- Banking & Payments (50.69%), and
- Database Management (5.75%).
So next time your broker app shows your stock balance, remember — NSDL made money on that update. It’s a classic rent-collector model: low capex, high regulatory moat, and zero exposure to trading volatility.
4. Financials Overview
| Metric (₹ Cr) | Sep Q FY26 | Sep Q FY25 | Jun Q FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 400 | 357 | 312 | 12.2% | 28.2% |
| EBITDA | 127 | 113 | 95 | 12.4% | 33.7% |
| PAT | 110 | 96 | 90 | 14.8% | 22.2% |
| EPS (₹) | 5.52 | 4.81 | 4.48 | 14.8% | 23.2% |
If NSDL
were a movie, its Q2 FY26 results would be that mid-season episode where the hero quietly flexes. Both revenue and profit jumped nicely — not too flashy, not too dull. Margins improved to32%, showing the operating leverage of an asset-light tech-infrastructure model.
Withannualized EPS = ₹5.52 × 4 = ₹22.08, itsP/E works out to 51.4x— slightly lower than the screener’s 66x TTM multiple, meaning forward valuations might actually look reasonable. “Reasonable,” of course, in the context of Indian fintech mania.
5. Valuation Discussion – Fair Value Range Only
Let’s apply three valuation lenses:
(a) P/E Method
- EPS (annualized): ₹22.08
- Reasonable P/E Band (Industry Avg 53x ± 10%) → 48x–58x→ Fair Value = ₹1,060 – ₹1,280
(b) EV/EBITDA Method
- EV = ₹22,192 Cr
- EBITDA (FY25): ₹376 Cr
- EV/EBITDA = 46.9x (Current)Reasonable Range = 35x–45x → Implied Value ₹1,000–₹1,250
(c) Simplified DCF (10% discount rate, 15% PAT growth for 5 yrs)→ Intrinsic Range ₹1,050–₹1,300
📜Educational Disclaimer:This fair value range (₹1,050–₹1,300) is for educational purposes only andnot investment advice. Please consult your pillow, not your broker.
6. What’s Cooking – News, Triggers, Drama
- SEBI Slap (Nov 2025):NSDL was warned by SEBI for delayed disclosures on directors/committees — no financial hit, just a bureaucratic spanking.
- Settlement Fine (Oct 2025):NSDL agreed to pay ₹15.57 crore to SEBI under settlement. Again, no major impact — just an expensive “no objection certificate.”
- IPO Listing (Aug 6, 2025):NSDL went public via anOffer for Sale of 5.01 crore shares. Institutions like HDFC Bank, IDBI Bank, and NSE hold significant stakes. The listing was calm, unlike the CDSL frenzy.
- Investor Call (Nov 2025):Management reiterated growth in demat accounts, transaction volumes, and payments bank traction. Translation: the flywheel keeps spinning.
In short — no soap opera here. NSDL’s drama happens in spreadsheets, not scandals.
