NSDL Reports Strong Q4 Results Amidst Karvy Legal Dispute

Key Financial Results

National Securities Depository Ltd (NSDL) has announced its financial results for the fourth quarter and full fiscal year ending March 31, 2026. The company reported strong consolidated revenue growth of 23.62% for the quarter, with net profit reaching ₹90.32 Cr. Full-year standalone profit after tax also saw an increase of 14.18%. While these results highlight stable performance and shareholder rewards, investors continue to monitor a significant legal dispute involving Karvy Stock Broking.

On a consolidated basis for the fourth quarter, NSDL posted a net profit after tax of ₹90.32 Cr on total income of ₹486.80 Cr, marking a 23.62% year-on-year revenue increase. For the full fiscal year, consolidated revenue grew 8.14% to ₹1,660.16 Cr, with net profit after tax at ₹380.01 Cr. Standalone operations also showed growth, with full-year revenue at ₹835.14 Cr (up 14.18%) and profit after tax at ₹360.60 Cr.

Financial Growth and Shareholder Value

The Board of Directors has recommended a dividend of ₹4 per equity share. NSDL's consolidated total equity strengthened, rising from ₹2,005.34 Cr to ₹2,379.56 Cr, reinforcing its financial base. An unmodified auditor opinion was provided on the annual financial statements, offering assurance regarding the accuracy and fairness of the reports.

NSDL's Role and the Karvy Case

NSDL is one of India's two primary securities depositories, crucial for holding and transferring securities in dematerialised form and ensuring smooth capital market operations.

The company is actively involved in a legal dispute concerning the release of pledged shares related to the Karvy Stock Broking Ltd (KSBL) case. This matter is currently before the Supreme Court and involves approximately ₹1,435.05 Cr in dues. NSDL is contesting a SEBI order regarding the release of these shares. No provision has been made by NSDL for this litigation, the outcome of which remains uncertain.

Looking Ahead

Key factors to monitor include the Supreme Court's judgment on the Karvy dispute, NSDL's ongoing revenue and profit growth trends, potential regulatory changes affecting the securities depository sector, and the company's dividend policy and payout consistency.

Industry Comparison

NSDL's closest listed peer is Central Depository Services (India) Limited (CDSL). For FY26, CDSL reported consolidated revenue of ₹642.61 Cr and a net profit after tax of ₹317.08 Cr.

Financial Highlights

• Consolidated total equity increased from ₹2,005.34 Cr in FY25 to ₹2,379.56 Cr in FY26.
• Standalone revenue growth for FY26 was 14.18% compared to FY25.
• Consolidated revenue growth for Q4 FY26 was 23.62% compared to Q4 FY25.