Every time you buy a share, it doesn't arrive as a paper certificate it sits electronically in a demat account. Someone has to keep that record safe and settle the trade. In India, two companies do that job, and NSDL is the bigger of the two by the value it safeguards.

NSDL is India's first depository, the company that started dematerialisation here back in 1996. Think of it as the back-end plumbing of the stock market it holds securities in electronic form, settles trades, and keeps ownership records for issuers and investors.

It makes money quietly and steadily annual custody fees from companies whose shares it holds, maintenance fees from depository participants, and transaction charges. As of March 2026 it held assets worth over ₹400 lakh crore in custody, an 86.6% share of the market by value. It also runs subsidiaries in e-governance and a payments bank. Track its live price and listing data on the IPO GMP Live homepage.

Financial Snapshot

The numbers are steady and clean. Consolidated revenue grew from ₹1,100 crore in FY23 to ₹1,366 crore in FY24, ₹1,535 crore in FY25, and ₹1,660 crore in FY26. Net profit moved up alongside ₹234 crore, ₹275 crore, ₹343 crore, and ₹380 crore across those four years. That's reliable, low-drama growth from an infrastructure business that's almost debt-free.

What I like is the quality of those earnings. A big part of NSDL's revenue is recurring custody and maintenance fees, the kind of toll-booth income that keeps coming whether markets are hot or cold. It pays a dividend too ₹4 a share for FY26.

What makes me cautious is the price you pay for it. The stock trades at roughly 47 times earnings while profit grows around 11% a year. That's a rich multiple for steady-but-not-spectacular growth. The market is paying up for the moat, not the growth rate.

There's also the cyclical bit. A chunk of income depends on new demat accounts and trading activity, both of which cooled in FY26 as foreign investors pulled money out. So while the long-term story is solid, near-term earnings can wobble with market sentiment.

Strengths

• It owns a near-monopoly moat. NSDL holds an 86.6% share of demat custody value and over ₹400 lakh crore in assets, having pioneered dematerialisation in India in 1996. This is critical market infrastructure that a new entrant simply cannot replicate.
• The earnings are high quality. Much of the revenue is recurring custody and maintenance fees income that keeps flowing regardless of market direction. The company is almost debt-free and pays a dividend, declaring ₹4 a share for FY26.
• Growth is steady and clean. Revenue rose from ₹1,100 crore to ₹1,660 crore and net profit from ₹234 crore to ₹380 crore over four years, with demat accounts reaching 44.4 million. It's not explosive, but it's dependable.
• A structural tailwind sits behind it. India's demat and investing base keeps expanding as more people enter the markets. Both depositories benefit from that long-term shift toward financial-asset ownership.

Risks

• It's expensive for the growth. At roughly 47 times earnings with profit growing around 11% a year, the valuation prices in the moat rather than the growth rate. Rich multiples leave little room for disappointment.
• The stock has already round-tripped. It listed at ₹880, ran up to an all-time high of ₹1,425, then fell back to a low of ₹788 it now trades near ₹890, down about 38% from its peak. The ride has been volatile.
• The company received nothing from the IPO. This was a 100% offer-for sale, so the entire ₹4,010.95 crore went to selling shareholders such as NSE and IDBI Bank, not into the business. The listing was partly about those owners paring stakes.
• CDSL competes hard, and earnings are cyclical. Rival CDSL leads in the number of retail demat accounts, and NSDL's income dips when markets cool as seen in FY26 when heavy foreign-investor outflows weighed on activity.

Should You Buy, Hold, or Sell?

The IPO is done, and it's been a round trip listed at ₹880, ran to ₹1,425, and is back near ₹890. This is now a call on the stock at roughly 47 times earnings.

Conservative investors — it's a quality, near-monopoly business with recurring income and a dividend, so it fits a steady long-term portfolio. But at this valuation, buy on dips rather than at the current price.

Moderate investors — hold if you own it; accumulate slowly toward the ₹790 lows. The franchise is excellent; your return depends entirely on the entry price.

Aggressive investors — there's little quick here. It's a compounder, not a momentum trade, and the easy listing gains are long gone.

Honest take: a wonderful, moat-protected business at a demanding price own it for the long haul if you can buy it cheaper, not for fast gains.

IPO Objects of the Issue

This was a 100% offer-for-sale, so the company received no proceeds. The entire amount went to the selling shareholders, who were paring their stakes (NSE's divestment was partly driven by regulation).

Contact Details

National Securities Depository Ltd. (NSDL) Naman Chambers, C-32, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051 🌐 www.nsdl.co.in

IPO Registrar — MUFG Intime India Pvt. Ltd. (formerly Link Intime India Pvt. Ltd.) 📞 +91-22-4918 6270 🌐 www.in.mpms.mufg.com

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This page is not investment advice. GMP is indicative only. Please consult a SEBI-registered financial advisor before investing.