NSDL vs CDSL: Which Depository Stock Looks Better After Q1 FY26 Results?
With NSDL’s blockbuster IPO and CDSL’s steady dominance, India’s depository battle heats up. Here’s a comparison of financials, valuations, and long-term outlook.
NSDL vs CDSL: NSDL’s IPO success and strong Q1 margin gains challenge CDSL’s retail dominance. Which depository stock looks better for investors?
NSDL’s IPO Success and Growing Market Share
National Securities Depository Ltd (NSDL) entered the stock market with a bang in July 2025. Its IPO, priced between ₹760–₹800, was fully subscribed in hours and the stock surged almost 80% above issue price, touching over ₹1,425 within days.
In Q1 FY26, NSDL posted a 14% sequential dip in revenue to ₹312 crore but still managed 8% growth in net profit at ₹89.6 crore. Margins improved, with EBITDA rising 4% QoQ and margins expanding to 30.5%.
The big story lies in market share — NSDL’s demat accounts crossed 4 crore, lifting its market share to 15.5% from 9.4% a year ago. In terms of custody value, it continues to dominate with 86.6% share, highlighting its edge in institutional and high-value holdings.
CDSL Maintains Retail Dominance
Central Depository Services Ltd (CDSL), the larger player by number of accounts, reported 15.6% revenue growth to ₹259 crore in Q1 FY26, led by issuer revenue and better transaction income.
Net profit remained flat at ₹102 crore versus ₹100 crore last quarter, and EBITDA margins improved to 50.4%. CDSL added 5.7 million demat accounts, slightly lower than the 6.4 million in the prior quarter, but still retains a commanding 84% share of total demat accounts.
Despite a yearly profit decline, CDSL’s strength lies in sticky retail participation and annuity-driven income from issuers.
Analyst Views: Premium Valuation vs Stability
According to analysts, NSDL is trading at a premium valuation (~70–79× P/E) compared to CDSL at ~66× P/E. The premium reflects NSDL’s strong custody dominance and rapid market share gains.
- SMC Global Securities: NSDL offers a growth-oriented play with accelerating account additions, while CDSL remains a steady retail-driven compounder.
- Lakshmishree Research: The sharp rally post-IPO limits NSDL’s near-term upside. CDSL offers a better risk-reward on dips, particularly near technical support at ₹1,378–1,380.
NSDL vs CDSL: Key Metrics Snapshot
| Metric | NSDL (Q1 FY26) | CDSL (Q1 FY26) |
|---|---|---|
| Revenue | ₹312 cr (-14% QoQ) | ₹259 cr (+15.6% QoQ) |
| Net Profit | ₹89.6 cr (+8% QoQ) | ₹102 cr (flat QoQ, -24% YoY) |
| EBITDA Margin | 30.5% (vs 25.1% Q4) | 50.4% (vs 48.6% Q4) |
| Market Share (Accounts) | 15.5% (4 cr accounts) | 84% |
| Custody Value Share | 86.6% | 13.4% |
Future Outlook: Which Stock Looks Stronger?
- NSDL: Rapidly gaining traction, particularly in high-value custody accounts. Its strong IPO momentum signals institutional investor confidence. However, premium valuations and the sharp post-listing rally make it vulnerable to profit booking in the short term.
- CDSL: Holds a near-monopoly in retail participation with a massive account base. While growth is slowing, its annuity-style revenue from issuers provides earnings visibility. Current valuations look more reasonable than NSDL.
Bottom line:
- Short to medium term: CDSL looks safer on dips, thanks to stable retail-driven growth.
- Long term: NSDL’s expanding share and custody dominance could make it the more powerful growth story, albeit at steeper valuations.
