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Q4 Results: Revenue Jumps, Profit Flat Amid Cost Pressures
National Securities Depository (NSDL) reported its fourth-quarter results, showing consolidated revenue rose 27.4% to ₹458 crore. Net profit remained largely unchanged at ₹90.1 crore, a minimal 0.6% increase year-on-year. The company's EBITDA margins compressed significantly, falling from 29.9% to 22.7%, driven by a 3.2% sequential decline in EBITDA to ₹103.9 crore. This indicates increased operational costs are impacting profitability despite higher sales.
Stock Performance on Results Day
On the day the results were announced, NSDL's stock closed slightly higher, up 0.19% at ₹880.85. This performance was stronger than the broader market, as the BSE Sensex declined 0.75% for the same day.
Shareholder Returns and Valuation
NSDL announced its second dividend since listing, proposing ₹4 per equity share for fiscal year 2026, totaling approximately ₹80 crore. This follows a ₹2 per share payout in September 2025. The company has a market capitalization of roughly ₹17,617 crore and a trailing twelve-month Price-to-Earnings (P/E) ratio around 47.2x. Analysts maintain a consensus "HOLD" rating with an average target price of ₹999, suggesting limited upside potential.
Competitive Landscape: NSDL vs. CDSL
NSDL's market position differs from its main competitor, CDSL. While NSDL handles 86.81% of the demat custody value, it has far fewer demat accounts (3.95 crore) compared to CDSL's 15.3 crore. CDSL also shows stronger profitability, with a PAT margin of 48.6% in FY25, more than double NSDL's 23.80%. This suggests CDSL is more efficient in managing costs.
Market Conditions and External Pressures
Broader market factors are also at play. Foreign investors have divested over $20 billion from Indian equities in the first four months of 2026. This outflow, combined with geopolitical tensions and rising oil prices, creates a cautious environment for financial services stocks.