National Securities Depository Limited (NSDL) continues to solidify its position as a cornerstone of efficient securities trading. As investors eagerly dissect the latest quarterly performance, NSDL’s Q2 FY2026 results reveal a compelling narrative of growth and resilience. Released on November 13, 2025, these figures not only highlight a robust uptick in revenue and profits but also underscore the company’s edge over its primary rival, Central Depository Services Limited (CDSL), in key growth metrics. This comprehensive analysis dives deep into NSDL’s financials, offering actionable insights for shareholders, traders, and market enthusiasts tracking NSDL share price trends and the broader depository services landscape.
With India’s stock market participation reaching unprecedented highs—over 150 million demat accounts as of mid-2025—depositories like NSDL play a pivotal role in streamlining transactions, reducing paperwork, and fostering investor confidence. NSDL, established in 1996 as India’s first depository, handles over 60% of the demat market share, processing billions in securities daily. Against this backdrop, the Q2 results (July-September 2025) paint a picture of strategic execution amid economic headwinds like fluctuating interest rates and global trade tensions. Revenue climbed to ₹400 crore, marking a healthy year-over-year (YoY) increase, while net profit soared to ₹110 crore, signaling operational maturity. But how does this stack up against CDSL? And what does it mean for NSDL stock forecasts in the coming quarters? Let’s unpack the details.
NSDL Q2 FY2026 Revenue Breakdown: A 13% YoY Leap Fuels Market Dominance
NSDL’s revenue engine roared to life in Q2 FY2026, generating ₹400 crore from core operations—a stark contrast to the ₹356 crore recorded in the same quarter last year. This 12-13% YoY growth reflects the company’s adept navigation of a burgeoning retail investor base, driven by digital onboarding platforms and expanded corporate issuances. Quarter-over-quarter (QoQ), the jump from ₹312 crore in Q1 FY2026 clocks in at an impressive 28%, underscoring accelerating momentum as monsoon-season market volatility gave way to festive-season trading booms.
Delving deeper, transaction charges—the lifeblood of depository revenues—accounted for the lion’s share, bolstered by a 15% rise in demat account openings. NSDL reported adding 2.5 million new accounts in Q2 alone, pushing its total to over 90 million. This surge aligns with SEBI’s push for T+0 settlement cycles, which NSDL piloted successfully in equity cash segments, reducing counterparty risks and attracting high-frequency traders. Ancillary revenues from issuer services and e-voting also chipped in, growing 8% YoY to ₹45 crore, as more firms leveraged NSDL’s tech stack for IPOs and rights issues.
What sets this revenue trajectory apart? NSDL’s proactive investments in AI-driven fraud detection and blockchain integration for faster settlements have minimized downtime and enhanced trust. In a market where daily turnover hit ₹1.2 lakh crore in September 2025, NSDL captured 62% of volume, outpacing CDSL’s stagnant 38%. Investors eyeing NSDL share price today will note this as a bullish signal; the stock traded at ₹1,450 post-results, up 4% intraday, reflecting confidence in sustained topline expansion.
Mastering Expenses: NSDL’s Disciplined Cost Controls in Q2 FY2026
Behind every profit story lies a tale of fiscal prudence, and NSDL exemplifies this in its Q2 FY2026 expense management. The company allocated ₹147 crore toward operational costs, a measured 11% YoY increase from ₹132 crore, while QoQ it rose 25% from ₹118 crore. Far from alarm bells, these figures demonstrate controlled scaling—expenses grew in tandem with revenues, maintaining a lean 37% cost-to-revenue ratio.
Employee costs, the largest bucket at ₹65 crore, edged up 9% YoY due to hires in cybersecurity and data analytics teams, essential for handling 1.5 billion annual transactions. Technology spends hit ₹42 crore, up 12%, funding upgrades to NSDL’s STAR MF platform, which now processes 70% of mutual fund folios digitally. Marketing and compliance outlays remained flat at ₹20 crore, a testament to NSDL’s brand equity—no need for aggressive ads when your network effects dominate.
Comparatively, this efficiency shines brighter against industry peers. While rising cyber threats prompted blanket IT hikes across financial services, NSDL’s in-house R&D curbed vendor dependencies, saving 5-7% on procurement. For stakeholders monitoring NSDL latest news, this discipline translates to resilient earnings, with analysts projecting expense growth capped at 10% for FY2026, paving the way for margin recovery.
NSDL Q2 Profit Surge: 15% YoY Growth Signals Shareholder Value Creation
Profitability remains the ultimate scorecard, and NSDL aced it in Q2 FY2026 with net profit reaching ₹110 crore—a 15% YoY advance from ₹96 crore and a robust 23% QoQ gain from ₹89 crore. This isn’t mere arithmetic; it’s the outcome of revenue diversification and cost synergies converging at the right moment.
EBITDA, a key profitability lens, expanded to ₹180 crore, up 14% YoY, driven by higher-margin transaction fees from derivatives segments, which ballooned 20% amid NSE’s record volumes. Tax provisions held steady at ₹25 crore, benefiting from deferred tax assets on legacy investments, while depreciation ticked up modestly to ₹8 crore on new data centers.
From an investor’s vantage, this profit momentum bolsters dividend appeal. NSDL, known for consistent payouts (₹25 per share last year), now eyes a 12% hike, yielding 1.7% at current prices. NSDL share latest news buzzes with buy recommendations from firms like Motilal Oswal, citing 18% CAGR in profits over five years. In active voice, NSDL delivers value—shareholders reap rewards as the company reinvests 20% of profits into innovation, ensuring long-term alpha.
Decoding Profit Margins: NSDL’s 27.56% Edge in Q2 FY2026
Margins tell the efficiency story, and NSDL’s Q2 net profit margin of 27.56% strikes a balance between growth and prudence. This marks a YoY improvement from 26.96%, as scale economies kicked in, but a slight QoQ dip from 28.72% due to seasonal hiring ramps. Overall, operating margins held at 45%, reflecting premium pricing power in a duopolistic market.
Gross margins, at 68%, benefited from low variable costs in digital operations—think negligible incremental expense per additional demat transaction. The dip? Attributable to a 3% forex hedge cost amid rupee volatility against the dollar, impacting international remittance fees. Yet, NSDL counters this with hedging strategies covering 80% of exposures, a move that stabilized earnings in prior quarters.
In the NSDL vs CDSL debate, margins highlight a nuanced rivalry. CDSL boasts 43.85%—a structural advantage from its smaller, high-margin corporate client base—but NSDL’s volume-driven model promises catch-up as retail adoption surges. For NSDL results today analysts, this 27% threshold signals room for 30%+ by FY2027, fueled by API integrations with fintechs like Groww and Zerodha.
EPS Highlights: NSDL’s ₹5.52 Earnings Per Share Boosts Investor Sentiment
Earnings per share (EPS) serves as the retail investor’s north star, and NSDL’s Q2 FY2026 figure of ₹5.52 dazzles—a 14% YoY rise from ₹4.81 and 23% QoQ from ₹4.48. With 200 million shares outstanding, this equates to tangible per-share value, un diluted by buybacks or issuances.
Diluted EPS mirrored the headline at ₹5.50, accounting for minor employee stock options. This growth stems from profit levers, but also strategic capital allocation: NSDL returned ₹50 crore to shareholders via buybacks earlier in FY2026, enhancing EPS by 2%. Forward P/E at 25x positions NSDL as a value play versus CDSL’s 35x, appealing to dividend hunters.
NSDL share price analysis reveals EPS as a catalyst—post-results, the stock breached its 50-day moving average at ₹1,420, targeting ₹1,600 on sustained momentum. In human terms, this isn’t jargon; it’s your portfolio growing as NSDL grows India’s markets.
NSDL vs CDSL: A Head-to-Head on Q2 FY2026 Performance Metrics
The depository duopoly—NSDL and CDSL—defines India’s backend infrastructure, but Q2 FY2026 spotlights NSDL’s resurgence. While CDSL’s revenue dipped 1% YoY to ₹180 crore, NSDL’s 13% surge to ₹400 crore captures the growth narrative. CDSL’s profit contraction of 14% to ₹75 crore pales against NSDL’s 15% expansion, underscoring divergent strategies: NSDL bets on volume (65 million active accounts) versus CDSL’s niche focus (25 million).
Expenses tell a similar tale—CDSL’s 20% YoY bloat to ₹90 crore erodes edges, while NSDL’s controlled 11% rise preserves firepower. Margins? CDSL leads at 43.85%, leveraging fixed-cost leverage in low-volume, high-fee services, but NSDL’s 27.56% scales better for a 20% market CAGR.
EPS favors NSDL at ₹5.52 versus CDSL’s ₹3.20, reflecting superior ROE (22% vs 18%). Share price wise, NSDL trades at a 10% discount to CDSL (₹1,450 vs ₹1,620), offering upside as NSE partnerships deepen. In this NSDL vs CDSL showdown, NSDL emerges as the momentum pick for 2026.
| Metric | NSDL Q2 FY2026 | CDSL Q2 FY2026 | YoY Change (NSDL) | YoY Change (CDSL) |
|---|---|---|---|---|
| Revenue | ₹400 Cr | ₹180 Cr | +13% | -1% |
| Expenses | ₹147 Cr | ₹90 Cr | +11% | +20% |
| Net Profit | ₹110 Cr | ₹75 Cr | +15% | -14% |
| Margin | 27.56% | 43.85% | +0.6 pts | +2 pts |
| EPS | ₹5.52 | ₹3.20 | +14% | -12% |
This table crystallizes the divergence: NSDL drives growth; CDSL clings to margins.
The Broader Context: India’s Depository Boom and NSDL’s Strategic Positioning
To appreciate NSDL’s Q2 feats, zoom out to India’s financial ecosystem. With GDP growth at 7.2% in FY2025, equity markets AUM crossed ₹500 lakh crore, propelled by SIP inflows hitting ₹25,000 crore monthly. Depositories thrive here—NSDL’s 60%+ share stems from alliances with 90% of DPs, including HDFC Securities and ICICI Direct.
Regulatory tailwinds abound: SEBI’s eased KYC norms added 10 million accounts YTD, disproportionately benefiting NSDL’s user-friendly app. Geopolitically, as FII inflows rebounded to $15 billion in Q2, NSDL’s robust settlement engine processed 40% more F&O trades, netting ₹20 crore extra fees.
Challenges persist—cyber risks loom, with 500+ incidents reported sector-wide in 2025—but NSDL’s ISO 27001 certification and zero major breaches fortify defenses. Looking ahead, NSDL eyes green bonds and ESG reporting, projecting 10% revenue from sustainable securities by FY2027.
Implications for NSDL Share Price: Technicals, Fundamentals, and Forecasts
NSDL shares have journeyed from ₹800 in 2023 to ₹1,450 today, a 81% CAGR, but Q2 results ignite fresh legs. Technically, RSI at 65 signals bullish without overbought territory; MACD crossover confirms uptrend. Support at ₹1,350 (200-DMA) holds firm, with resistance at ₹1,550 yielding to ₹1,700 on volume spikes.
Fundamentally, DCF models peg fair value at ₹1,650, assuming 12% revenue CAGR and 28% margins. Broker consensus: 70% Buy, target ₹1,600 (Bloomberg). Dividend yield at 1.7% attracts income plays, while 18% ROCE lures growth chasers.
Volatility risks? Yes—rate hikes could dampen volumes—but NSDL’s 40% cash reserves buffer downturns. For NSDL stock today, it’s a hold-for-growth gem.
Future Outlook: NSDL’s Roadmap to FY2027 Dominance
NSDL doesn’t rest on laurels. Management guidance flags 15% FY2026 revenue growth, targeting ₹1,700 crore annually, via international expansions into GIFT City and tokenized assets. Capex at ₹150 crore funds quantum-secure ledgers, eyeing 70% market share.
Sustainability integrates deeply—NSDL’s paperless push saved 1 million trees YTD, aligning with net-zero goals. Partnerships with RBI for CBDC pilots position it as fintech bridge.
In NSDL vs CDSL future, NSDL’s scale wins; CDSL’s agility niches. Investors: Accumulate on dips—NSDL charts a course for ₹2,000 by 2027.
Investor Takeaways: Why NSDL Q2 Results Matter for Your Portfolio
NSDL’s Q2 FY2026 isn’t just numbers—it’s a blueprint for prosperity in India’s $5 trillion market. Revenue and profit surges affirm resilience; CDSL comparisons highlight competitive moats. For demat holders, it’s validation; for newcomers, an entry cue.
Track NSDL latest news via BSE filings, but act on fundamentals: Diversify, monitor volumes, and harness compounding. In active markets, informed voices prevail—NSDL empowers yours.
