National Securities Depository Limited (NSDL) posted a 36.5% jump in consolidated revenue to Rs 545.9 crore for the September 2026 quarter. While consolidated net profit grew 10.9% to Rs 122.5 crore, margins remain under pressure due to heavy investments in technology and 'Demat 2.0' initiatives. The company added 15.6 lakh demat accounts during the quarter, bringing the total to 4.72 crore.
NSDL Q2 FY27 Financial Results
Consolidated PAT stands at Rs 122.5 crore, up 10.9% year-on-year.
Consolidated revenue from operations reached Rs 545.9 crore, marking a 36.5% increase.
Reader Takeaway: Strong topline growth driven by primary market activity is balanced by elevated tech investment costs impacting margins.
What just happened
National Securities Depository Limited (NSDL) released its financial results for the quarter ended September 30, 2026 (Q2 FY27). The company reported a 36.5% increase in operational revenue, supported by growth in both its core depository services and its payments bank subsidiary. Total income rose to Rs 582.6 crore from Rs 432.2 crore in the same period last year. Despite the revenue surge, net profit growth remained tempered at 10.9%, largely due to sustained capital expenditure in technology infrastructure and human capital.
Why this matters
NSDL is currently undergoing a strategic shift toward 'Demat 2.0,' which leverages Distributed Ledger Technology (DLT) and AI to modernize settlement processes. Management noted that the company is transitioning from a 'catch-up' phase to a 'build-up' phase. While this investment cycle has compressed short-term margins, it is intended to create long-term operating leverage. Investors are closely watching these costs, as management indicated that the pace of tech-related spending is beginning to moderate.
Business Performance
NSDL's demat account base grew to 4.72 crore, with 15.6 lakh net additions during the quarter. The fintech-focused incremental sourcing strategy continues to gain traction, holding a 23.5% market share. Simultaneously, the NSDL Payments Bank reported robust performance, with its retail customer base growing 1.6x to 54.3 lakh, holding deposit balances of Rs 378.1 crore.
Risks to watch
Regulatory risk remains a key concern. Management clarified that there have been no hikes in IPO or settlement charges, and discussions with regulators regarding pricing adjustments have persisted for over a year without resolution. This static pricing environment limits the company's ability to offset an elevated cost base, continuing to exert pressure on profitability.
What to track next
The market will be monitoring the progress of tokenized bond pilots under the 'Demat 2.0' initiative, which have already completed issuances exceeding Rs 1,000 crore. Future margin expansion will depend heavily on the normalization of tech expenses and potential regulatory decisions regarding service pricing.