National Securities Depository Limited Q2 FY27 Results Conference Call Summary

Reference: Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015

Financial Performance Highlights

Standalone Q2 FY27 Results:

  • Revenue from operations: ₹227.8 crore (up 11.6% YoY from ₹204.2 crore in Q2 FY26)
  • Total income: ₹279.8 crore (up 11.7% YoY from ₹250.6 crore in Q2 FY26)
  • EBITDA: ₹171.6 crore (up 6.8% YoY from ₹160.7 crore in Q2 FY26)
  • EBITDA margin: 61.3% (ex-dividend margin: 58.6%)
  • Net profit: ₹126.7 crore (up 5.2% YoY from ₹120.4 crore in Q2 FY26)
  • PAT margin: 45.3% (ex-dividend PAT margin: 41.4%)

Standalone H1 FY27 Results:

  • Total income: ₹499.5 crore (up 13.3% YoY)
  • Net profit: Growth of 6.3% YoY (specific amount not quantified)
  • Net worth: ₹2,263.4 crore
  • Technology capitalization: ₹23.9 crore in H1 FY27 (compared to ₹106.1 crore for full year FY26)

Consolidated Q2 FY27 Results:

  • Revenue from operations: ₹545.9 crore (up 36.5% YoY from ₹400.0 crore in Q2 FY26)
  • Total income: ₹582.6 crore (up 34.8% YoY from ₹432.2 crore in Q2 FY26)
  • EBITDA: ₹178.5 crore (up 12.5% YoY from ₹158.8 crore in Q2 FY26)
  • EBITDA margin: 30.6%
  • Net profit: ₹122.5 crore (up 10.9% YoY from ₹110.4 crore in Q2 FY26)
  • PAT margin: 21.0%
  • NSDL standalone contributes approximately 88% of total consolidated profit

Consolidated H1 FY27 Results:

  • Total income: ₹1,143.1 crore (up 46.7% YoY)
  • Net profit: ₹220.8 crore (up 10.4% YoY)

Operational Metrics and Business Updates

Depository Participant Business:

  • Total demat accounts: 4.72 crore as of Q2 FY27
  • Depositary participants: 320 (added 4 new DPs in Q2, 10 in H1 FY27)
  • Service coverage: 2,000+ cities and small towns
  • Custody value: 86% of market total, amounting to USD 5.6 trillion (80% equity base)
  • Net demat accounts added in Q2: 15.6 lakh
  • Market share: 17.2% in Q2 FY27 (vs 17.6% in previous quarter); H1 market share at 17.4% (vs 16.6% in H1 FY26)
  • Fintech brokers: Account for 23.5% of incremental demat account sourcing (vs 9.3% in Q2 FY26)
  • YUva Plan and women's demat plan: Together account for 45% of incremental demat account additions

Issuer and Value-Added Services:

  • Investor base: Crossed 118,000 issuers
  • Unlisted issuer market share: 72.5% in Q2 with 3,197 companies admitted
  • E-voting platform: 3,160 events in Q2 (vs 2,924 in same quarter last year), market share stable at 52.4%
  • API offerings: 68+ APIs introduced for DPs to enhance customer experience

Strategic Initiatives and Technological Developments

Demat 2.0 Platform:

  • Pilot launch of next-generation platform using distributed ledger technology (DLT)
  • Supports tokenized securities and enables real-time settlement through RBI's CBDC infrastructure
  • Currently restricted to bonds in SEBI sandbox environment
  • Three issuances completed with total value exceeding ₹1,000 crore
  • Currently open only for institutional market (not retail investors)
  • Secondary market trading capabilities still in development phase

Other Technological Initiatives:

  • Online submission of Form 121 through NSDL's corporate website
  • API-based interface with NSE for automated creation of Electronic Gold Receipts (EGR)
  • API connectivity for Online Bond Platform Providers (OBPP) for real-time validations
  • Support for SEBI's nationwide project Jagruk investor awareness program

Investor Awareness Programs:

  • Conducted 1,259 multilingual investor awareness programs in Q2 FY27
  • Reached over 55,000 participants across 10 states and union territories
  • Programs conducted through online, offline, and hybrid formats

Subsidiary Performance

NSDL Payments Bank (NPBL):

  • RuPay NCMC Smart Cards: Reached 1.3 crore MSRTC registrations
  • Cumulative card loads: Over ₹100 crore in October 2026
  • Supports concessional bus travel in Maharashtra under government mandate (effective September 4, 2026)
  • Retail customer base: 54.3 lakh customers in Q2 FY27 (1.6x growth from 33.5 lakh a year ago)
  • Deposit balances: ₹378.1 crore (1.4x growth)
  • UPI acquiring business showing significant growth through partnerships
  • Subsidiary profitability: Contributes more than 10% to group profits (vs 5% 1.5 years ago)

NSDL Database Management:

  • KRA records: 2.06 crore records as of September 30, 2026

Insurance Repository Business:

  • NDML incorporated NDML Insurance Repository Services Limited
  • Demerger application filed with NCLT Mumbai to transfer insurance repository business
  • Dematerialized insurance policies: 1.75 crore cumulative policies on platform
  • Both subsidiaries (Payments Bank and Database Management) are profitable

Management Commentary and Market Context

Market Environment:

  • Primary market rebounded strongly in Q2 FY27 after muted Q1
  • India's primary market raised over ₹1.17 lakh crore through 244 IPOs in first 9 months of 2026
  • Nearly ₹90,000 crore raised in Q2 FY27 alone, including landmark NSE listing
  • Total demat accounts in India crossed 24 crore, with 90 lakh accounts added in Q2 FY27 (up 14.2% YoY from 79 lakh)
  • NSE's unique investors reached approximately 13.7 crore by September 2026 (vs 12.9 crore in April 2026)

Strategic Priorities:

  • Priority #1: Increase retail market share (currently the only segment needing catch-up)
  • Focus on growing customer franchise, improving customer experience, and strengthening investor awareness
  • Technology investments in resilience, cybersecurity, operational automation, AI, and critical talent
  • Investment pace in critical talent has started moderating
  • Expect operating leverage to support margin normalization as investments mature

Leadership Appointments:

  • Mr. Subhash Kelkar: Executive Director, Critical Operations (36 years experience, former CTO at BSE)
  • Mr. Ankit Sharma: Executive Director, Regulatory and Compliance (31 years experience, former CRO at NSE)
  • Mr. Ashish Dandekar: CTO (35 years experience, former roles at NSE and Power Exchange India Limited)

Q&A Session Highlights

Demat 2.0 Opportunity:

  • Platform uses DLT technology for instantaneous settlement (similar to UPI)
  • Joint initiative with CDSL (no first-mover advantage for NSDL)
  • Future expansion to other tokenized financial instruments possible subject to regulatory development

Market Share Outlook:

  • Run rate market share has improved from 9% to 16-18% range
  • Added 30 new DPs in last 1.5 years, many being fintechs
  • Expect market share to increase as new DPs scale their business

IPO and Corporate Action Momentum:

  • IPO activity adds approximately 25-30% alpha to business when pipeline is strong
  • Expect continued momentum if market conditions remain favorable and SEBI approvals continue

Unlisted Companies Business:

  • Admission rate has stabilized at ~3,000 companies per quarter after previous declines
  • Market appears saturated after onboarding 30,000 companies last year and 33,000 previously
  • H1 FY27 onboarded 6,500 companies

Technology Investment Outlook:

  • Elevated spending phase (2+ years) transitioning from catch-up to build-up mode
  • Capex increased from ~₹30 crore to over ₹100 crore annually
  • Expect expense growth to flatten from next year due to base effect
  • Future spending will be more discriminate and value-added focused

Pricing Environment:

  • No price increase on IPO services (pricing remains unchanged)
  • Settlement charge increase discussions with regulators ongoing for over 1 year with no resolution
  • No progress on pricing adjustments despite elevated cost base

Account Metrics:

  • Total demat accounts: 4.72 crore
  • KRA records: 2.06 crore
  • Account uniqueness: Over 80% of accounts are unique

Closing Remarks

Management expressed gratitude to shareholders, investors, and analysts. Reiterated commitment to building stronger business, deepening competitive position, and delivering sustained value. Invited follow-up questions through IR team contacts.