For years, NSDL worked quietly in the background, making sure every trade in India’s markets was settled without a glitch. It handled millions of investor accounts and trillions in assets, but most people barely noticed it. That changed in August, when its stock market debut suddenly put it in the headlines.
NSDL’s IPO was priced at Rs 800 a share, and it opened at Rs 880 on listing day. Within days, it was up more than 80% from that price, with its market cap crossing Rs 30,000 cr. For a company built on trust and stability, it was an unusual and well-deserved moment in the spotlight.
Why the sudden buzz?
One big reason is scale. NSDL holds over Rs 510 lakh cr worth of assets under custody and manages more than 4 crore demat accounts, most from big institutional clients like mutual funds, insurers, and foreign portfolio investors. That steady flow of business makes its earnings less volatile.
Valuations also helped. At listing, NSDL’s P/E ratio was around 47x, compared with rival CDSL’s 63x. On price-to-book too, it looked more affordable, giving investors a shot at a market leader at a discount.
Metric (FY25) | NSDL | CDSL |
Assets Under Custody | Rs 464 lakh cr | Rs 71 lakh cr |
Demat Accounts | 4+ cr | 15+ cr |
Revenue | Rs 1,535 cr | Rs 1,199 cr |
YoY Revenue Growth | ~12% | ~32% |
Net Profit | Rs 343 cr | Rs 526 cr |
Net Profit Margin | ~22% | ~48% |
Share of Recurring Revenue | ~42% | ~65% |
P/E Ratio | ~47x | ~63x |
While CDSL dominates in account numbers and recurring revenues, thanks to its strong connection with discount brokers and fintechs, NSDL owns the high ground in value of holdings and institutional reach.
The business at a glance
NSDL earns from issuer charges, transaction fees, settlement services, and corporate action handling. It may not be flashy, but it’s vital to keeping the markets running. And as more people invest in India’s capital markets, its role only grows more important.
The takeaway
NSDL’s listing surge isn’t just IPO excitement. It reflects deep-rooted market trust, leadership in asset value, and the strength of being at the very heart of India’s market infrastructure. CDSL brings retail scale, NSDL brings institutional heft, and both have their place in an investor’s watchlist.
Disclaimer
This blog is purely for educational purposes and should not be considered investment advice. Please do your own research or consult a registered financial advisor before making any investment decisions.