Synopsis: In Q4FY26, NSDL outperformed CDSL with higher revenue growth (25.8% YoY, 27.2% QoQ) and net profit gains, while CDSL saw declines in quarterly profits. NSDL’s consistent earnings, operational efficiency, and steady dividends underscore its superior performance for the quarter.
The Indian depository landscape is dominated by two major players: Central Depository Services (India) Ltd (CDSL) and National Securities Depository Ltd (NSDL). Both entities play a crucial role in managing securities and facilitating smooth electronic trading for investors, making their quarterly performance closely watched by market participants.
In the latest Q4 results, investors and analysts have been keenly comparing CDSL and NSDL to gauge which depository demonstrated stronger growth, operational efficiency, and profitability. These results not only reflect the health of the depository industry but also provide insights into broader trends in retail and institutional participation in the Indian capital markets. In this article, let’s see who has performed better.
Central Depository Services (India) Limited (CDSL) is one of India’s leading depository institutions, established in 1999. It plays a critical role in the Indian financial market by providing electronic storage and management of securities such as shares, bonds, and mutual funds, eliminating the need for physical certificates. CDSL enables smooth trading and settlement of securities on stock exchanges, ensuring transparency, security, and efficiency in transactions.
With a market capitalization of Rs. 25,970.34 crores in the day’s trade, the shares of Central Depository Services (India) Limited rose upto 1.9 percent, making a high of Rs. 1,262.80 per share compared to its previous closing price of Rs. 1,238.30 per share.
Q4 results
Its Revenue from operations rose by 17.4 percent YoY from Rs. 224 Crores in Q4FY25 to Rs. 263 Crores in Q4FY26, and it declined by 13.4 percent QoQ from Rs. 304 Crores in Q3FY26 to Rs. 263 Crores in Q4FY26.
Its Net Profit YoY declined by 20.2 percent from Rs. 100 Crores in Q4FY25 to Rs. 79.8 Crores in Q4FY26, and on a QoQ basis, it declined by 40 percent from Rs. 133 Crores in Q3FY26 to Rs. 79.8 Crores in Q4FY26.
The earnings per share (EPS) for the quarterly period stood at Rs. 3.84, compared to Rs. 4.80 in the previous year’s quarter. The Board of Directors has recommended a final dividend for FY 25-26 of Rs. 12.75/- per equity share of face value of Rs. 10/- (i.e., 127.5% on the face value of equity share)
The company demonstrates strong profitability, with a return on capital employed (ROCE) of 32.0% and a return on equity (ROE) of 24.5%. Its debt-to-equity ratio of 0.00 indicates a completely debt-free capital structure, reflecting financial stability and low risk. Over the past three years, the company has maintained an impressive average ROE of 29.2%, showcasing consistent value creation for shareholders.
In addition to robust returns, the company has a healthy dividend payout ratio of 54.3%, signaling a commitment to rewarding investors. Its median sales growth over the last 10 years is 23.7%, highlighting strong and sustained business expansion. Overall, the company combines high profitability, financial prudence, and steady growth, making it attractive from both investment and operational perspectives.
In Q4FY26, CDSL reported high income from its core issuer and transaction-linked businesses. Annual Issuer income stood at Rs. 114 crore, while Income from Transaction Charges contributed Rs. 59 crore, reflecting steady activity in market participation and settlement volumes.
Other revenue streams also added meaningfully to the overall performance. IPO/Corporate Action income was Rs. 17 crore, Online Data Charges contributed Rs. 49 crore, and Other Income stood at Rs. 29 crore, showing diversified income support beyond core depository operations.
National Securities Depository Ltd
National Securities Depository Limited (NSDL) is one of India’s leading central securities depositories, established in 1996 to modernize and streamline the country’s securities market. Its primary function is to hold securities like shares, bonds, and government securities in electronic form, eliminating the risks and inefficiencies associated with physical certificates.
It plays a crucial role in enabling electronic trading, settlement, and dematerialization of securities, ensuring faster, safer, and more transparent transactions for investors and financial institutions.
With a market capitalization of Rs. 17,274.00 crores in the day’s trade, the shares of National Securities Depository Ltd declined upto 1.08 percent, making a low of Rs. 862.30 per share compared to its previous closing price of Rs. 871.75 per share.
Q4 results
Its Revenue from operations rose by 25.8 percent YoY from Rs. 364 Crores in Q4FY25 to Rs. 458 Crores in Q4FY26, and it rose by 27.2 percent QoQ from Rs. 360 Crores in Q3FY26 to Rs. 458 Crores in Q4FY26.
Its Net Profit YoY rose by 8.4 percent from Rs. 83.3 Crores in Q4FY25 to Rs. 90.3 Crores in Q4FY26, and on a QoQ basis, it rose by 0.6 percent from Rs. 89.7 Crores in Q3FY26 to Rs. 90.3 Crores in Q4FY26.
The earnings per share (EPS) for the quarterly period stood at Rs. 4.51, compared to Rs. 4.16 in the previous year’s quarter. Further, the Board of Directors has recommended the payment of a dividend of ₹4 per equity share of face value ₹ 2 each for FY 2025-26.
The company demonstrates strong operational efficiency, with a Return on Capital Employed (ROCE) of 23.2%, indicating effective use of its capital to generate profits. Its Return on Equity (ROE) of 17.4% reflects solid returns for shareholders. Additionally, the debt-to-equity ratio of 0.01 shows the company is almost entirely equity-financed, suggesting very low financial risk and minimal reliance on debt.
NSDL is India’s first and largest depository, playing a key role in the dematerialised capital market. It holds a dominant position across multiple segments, including 86.1% share of total demat custody value and 65.8% share in individuals & HUFs custody value.
It serves a wide investor base with about 44.4 million beneficiary owner accounts and has a strong presence in securities holdings, including FPIs (99.9%) and listed debt securities (97.7%). It also manages over 2.42 lakh active instruments, reflecting its broad market reach.
In terms of market influence, NSDL accounts for 72.5% share in unlisted companies (equity) and 89.6% share by demat value in unlisted equities. It also represents 41.3% of the total income market share (FY26) and has over 11,000 registered issuers, highlighting its deep integration in India’s capital markets. Overall, the data underscores NSDL’s dominant infrastructure role in custody services, investor accounts, and securities coverage across listed and unlisted segments.
Conclusion
In Q4FY26, NSDL outperformed CDSL with revenue rising 25.8% YoY and 27.2% QoQ, while CDSL’s revenue grew 17.4% YoY but fell 13.4% QoQ. Net profit trends also favoured NSDL, which saw 8.4% YoY growth, whereas CDSL’s profit dropped 20.2% YoY and 40% QoQ.
While CDSL remains highly profitable with strong ROE and ROCE, NSDL’s better quarterly growth, steady profits, and consistent dividends highlight stronger operational performance, making it the better Q4 performer.
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Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
