NSDL Reports Strong Revenue Growth in Q2 FY27

Revenue from Operations: Rs 545.89 Crore | Profit After Tax: Rs 122.45 Crore

Reader Takeaway: Robust revenue expansion drives performance, though tax demands and legacy legal battles remain key monitorable risks.

What just happened

National Securities Depository Ltd (NSDL) released its financial results for the second quarter of the fiscal year 2027. The company reported consolidated revenue from operations of Rs 545.89 crore, showing a significant increase compared to the Rs 400.04 crore recorded in the same period last year. Consolidated Profit After Tax (PAT) stood at Rs 122.45 crore, rising from Rs 110.39 crore in Q2 FY26. On a standalone basis, revenue reached Rs 227.80 crore with a PAT of Rs 126.67 crore.

Why this matters

The steady increase in revenue highlights NSDL’s operational strength as a core depository in the Indian financial market. However, the filing highlights two specific areas of concern for stakeholders. The firm received a GST show-cause notice on August 13, 2026, demanding Rs 28.68 crore for the period between April 2020 and March 2024. Additionally, the company is still navigating litigation concerning Karvy Stock Broking. NSDL has stated that it expects a favorable outcome in the Karvy matter and has not made any specific provisions for related claims.

Risks to watch

Investors should monitor the resolution of the GST notice, which is currently in the initial procedural stage. The ongoing legal battle regarding Karvy Stock Broking also remains a potential liability that could impact the balance sheet depending on court outcomes. NSDL maintains that its legal position is strong, but these regulatory and legal headwinds remain a primary focus for long-term risk assessment.