Synopsis:
NSDL and CDSL delivered contrasting Q2 outcomes, with NSDL exhibiting stronger YoY development whereas CDSL rebounded to QoQ. Brokerages stay impartial on each, citing excessive valuations, regular duopoly advantages, and market-linked income sensitivity.
India’s depository market is dominated by two giants, that are Nationwide Securities Depository Restricted (NSDL) and Central Depository Companies (India) Restricted (CDSL). Whereas each allow digital storage and switch of securities, their enterprise fashions and investor bases differ markedly.
NSDL primarily serves institutional purchasers and instructions a dominant share of demat custody worth, reflecting its give attention to high-value accounts, mutual funds, and authorities initiatives. Alternatively, CDSL leads within the variety of demat accounts, catering primarily to retail traders and benefiting from fintech-driven retail participation.
Worth efficiency
With market capitalization of Rs. 22,730 cr, the shares of Nationwide Securities Depository Ltd are closed at Rs. 1,136.50 per share, from its earlier shut of Rs. 1,153.95 per share.
The inventory was listed on August 6, 2025, on each the BSE and NSE. The shares debuted at Rs. 880, a ten% premium over the ultimate concern value of Rs. 800 per share. Since then, the inventory has delivered a 21% return, and over the previous month it has slipped by 3%.
In the meantime, With market capitalization of Rs. 33,649 cr, the shares of Central Depository Companies (India) Ltd are closed at Rs. 1,610 per share, from its earlier shut of Rs. 1,640.10 per share.
The shares bought listed on NSE on Jun 30, 2017, since then the inventory has surged 559% over the previous 5 years, delivered a 4% return within the final 12 months, and flat over the previous month.
Q2FY26 Outcomes
NSDL reported regular year-on-year development in Q2 FY26, with income rising about 12% to Rs. 400 crore. EBITDA elevated round 12.4% to Rs. 127 crore, whereas web revenue grew roughly 14.3% to Rs. 110 crore. EPS additionally improved about 14.8% to Rs. 5.52, indicating constant profitability growth.
On a sequential foundation, the corporate delivered sturdy momentum. Income elevated about 28.2% from Rs. 312 crore, whereas EBITDA rose round 34% from Rs. 94.8 crore. Internet revenue was up roughly 22.8% in comparison with final quarter, and EPS improved about 23.2%, reflecting sturdy quarter-on-quarter operational energy.
Whereas CDSL’s Q2 FY26 outcomes have been barely weaker in comparison with final 12 months. Income declined about 0.9% to Rs. 319 crore, whereas EBITDA fell round 12% to Rs. 176 crore. Internet revenue dropped roughly 13.6% to Rs. 140 crore, and EPS decreased about 13.4% to Rs. 6.71, indicating a delicate year-on-year efficiency.
Sequentially, the corporate delivered sturdy development. Income elevated round 23.2% from Rs. 259 crore, and EBITDA rose about 35.4% from Rs. 130 crore. Internet revenue climbed roughly 37.3%, whereas EPS improved round 36.7%, reflecting a strong rebound on a quarter-on-quarter foundation.
Key comparability
As of FY25, NSDL recorded a pointy rise in new traders, including 3.68 million through the 12 months. It additionally leads considerably in scale, with 4,759 billion securities held in demat type and a complete securities worth of Rs. 464 trillion. Moreover, NSDL has 10.47 lakh non-resident particular person and different class investor accounts, reflecting its dominance in institutional participation.
As compared, CDSL added 37.38 million new traders in FY25, showcasing its sturdy retail focus and speedy account development. Nevertheless, it manages a smaller asset base, with 836 billion securities in demat type valued at Rs. 71 trillion. CDSL additionally has 2.17 lakh investor accounts from classes apart from resident people, a lot decrease than NSDL.
Dividend
For the second quarter of FY26, Nationwide Securities Depository Restricted (NSDL) made a dividend announcement of Rs. 2 per share, which is its very first dividend going again to when it grew to become a listed firm. Along with this, NSDL paid Rs. 18.3 crore within the type of a dividend to its subsidiary, NSDL Database Administration Restricted (NDML), in the identical quarter.
Central Depository Companies (India) Restricted (CDSL) had a dividend per share of Rs. 12.50 which was 4 occasions greater than that of NSDL for the quarter ended September 2025.
Brokerages Outlook
ICICI Securities has given NSDL a Maintain ranking with a goal value of Rs. 1,170, highlighting its sturdy capital-light enterprise mannequin, excessive share of recurring income, and place in a duopoly market.
The brokerage notes NSDL’s premium valuations, pushed by long-term compounding potential and market-share beneficial properties, whereas new administration and digital initiatives add to its strengths. Nevertheless, general market momentum stays the important thing issue influencing efficiency.
Motilal Oswal on NSDL, the brokerage reiterated its Impartial ranking with a goal value of Rs. 1,270, implying a ten% upside from present ranges. It expects the corporate to put up regular development in income, EBITDA, and revenue over the subsequent three years.
Motilal Oswal famous that increasing custody charge earnings, better involvement from banks, and the rising shift towards digital record-keeping options are prone to help NSDL’s enterprise momentum.
In the meantime ICICI Securities upgraded CDSL to HOLD (from Scale back) and raised its goal value to Rs. 1,500, which suggests a 8% draw back from present ranges valuing the corporate at 40 occasions FY28E core EPS of Rs. 34.4. The brokerage expects sturdy development forward, projecting FY25–28 income, EBITDA, and PAT CAGRs of 16.2%, 18.4%, and 17.3%, supported by rising demat exercise, decrease regulatory dangers, and working leverage.
Whereas the agency highlights CDSL’s stable duopoly positioning and development potential in areas just like the insurance coverage depository enterprise, it additionally notes that transaction-driven and IPO-related revenues stay market-linked. The improve is pushed by improved Q2 efficiency and a rollover to FY28 estimates.
Motilal maintained its Impartial stance on CDSL, assigning a Rs. 1,520 goal value, which suggests a 7% draw back from present ranges. In response to its report, CDSL continues to realize from constant development in new demat accounts and the rising variety of unlisted firms onboarding its platform.
Written by Manideep Appana
Disclaimer
The views and funding ideas expressed by funding consultants/broking homes/ranking businesses on tradebrains.in are their very own, and never that of the web site or its administration. Investing in equities poses a danger of economic losses. Buyers should due to this fact train due warning whereas investing or buying and selling in shares. Commerce Brains Applied sciences Non-public Restricted or the creator should not chargeable for any losses induced because of the choice based mostly on this text. Please seek the advice of your funding advisor earlier than investing.
