Debut of NSDL IPO Shows Strength: Incredible 400-fold Profits for IDBI and SBI
NSDL Bolsters IT Infrastructure and Expands Services
National Securities Depository Ltd (NSDL), India's largest securities depository, is set to bolster its growth following its successful listing on the BSE and NSE in early August 2025. The company, which currently holds about 70% of the demat account market by value, is poised to capitalise on several strategic opportunities.
NSDL's growth strategies include expanding its reach among tier-2 and tier-3 retail investors, capitalising on rising IPO volumes, and deepening its role in e-governance infrastructure such as DigiLocker to drive demand for demat accounts and digital recordkeeping. The company's focus on evolving alongside blockchain and digital innovations within India's capital markets is particularly noteworthy, given the sector's resilient demand and regulatory stability.
The company's financial performance over the past seven years has been robust, with a compound annual growth rate (CAGR) of approximately 17% in revenues and 20% in profit CAGR. In FY25 alone, NSDL posted a revenue of ₹1,420 crore and a net profit of ₹343 crore, with stable profit margins around 45%.
NSDL's IPO listing at a valuation notably cheaper than its key competitor CDSL (47x FY25 earnings vs. CDSL’s 64-68x) reflects investor confidence in NSDL's superior scale and potential to close the valuation gap. The listing itself enhances NSDL's market visibility and access to capital markets, which may support future digital infrastructure investments and innovation.
Looking ahead, NSDL aims to provide a greater range of products via data and payment services, improve operational resilience through digital transformation, and deepen market penetration. The company also intends to focus on improving operational efficiencies to maintain its leadership in securities depository services.
In summary, NSDL's recent growth plans revolve around consolidating its leadership in securities depository services by expanding retail investor penetration beyond metros, integrating with emerging digital governance systems, and leveraging its dominant position to benefit from India’s expanding capital markets ecosystem post-IPO.
- As NSDL plans to provide a variety of products via data and payment services, it is also seeking to invest in digital infrastructure and innovations within the finance industry.
- NSDL's growth strategies in the business sector include increasing its presence among tier-2 and tier-3 retail investors, capitalizing on rising IPO volumes, and deepening its role in e-governance infrastructure like DigiLocker, driving demand for demat accounts and digital recordkeeping.
