What is the story about?
Shares of National Securities Depository Ltd. (NSDL) opened lower in Thursday's session after the company reported a subdued performance for the December quarter, weighed down by a slowdown in its high-margin core depository business.
On a quarter-on-quarter basis, NSDL's revenue declined 10.1%, largely due to a sharp 17% drop in the core depository segment.
The weakness in the core business also hurt profitability, with EBITDA margins contracting by 214 basis points to 29.8% during the quarter.
Net profit fell 18.8% sequentially.
Digital banking emerged as the sole bright spot in the quarter, with EBIT surging 106.2% quarter-on-quarter. However, the segment's relatively low margin of around 5% meant it was insufficient to offset the broader slowdown in the core depository business.
The depository and database management segments both slumped with a revenue downtick and margin compression.
With the earnings performance falling short of expectations, traders are now awaiting further clarity from the company's upcoming investor presentation.
NSDL shares ended Wednesday's session 2.65% higher at ₹1,011.85. Despite the uptick, the stock is down 5% so far in 2026.
Excluding Wednesday's gain, the stock had declined in each of the previous eight consecutive sessions.
From its 52-week high of ₹1,425, NSDL shares have corrected by nearly 30%.
On a quarter-on-quarter basis, NSDL's revenue declined 10.1%, largely due to a sharp 17% drop in the core depository segment.
The weakness in the core business also hurt profitability, with EBITDA margins contracting by 214 basis points to 29.8% during the quarter.
Net profit fell 18.8% sequentially.
Digital banking emerged as the sole bright spot in the quarter, with EBIT surging 106.2% quarter-on-quarter. However, the segment's relatively low margin of around 5% meant it was insufficient to offset the broader slowdown in the core depository business.
The depository and database management segments both slumped with a revenue downtick and margin compression.
With the earnings performance falling short of expectations, traders are now awaiting further clarity from the company's upcoming investor presentation.
NSDL |
Q3FY26 |
Q2FY26 |
% QoQ |
Revenue |
359.6 |
400.04 |
-10.1% |
EBITDA |
107.30 |
127.93 |
-16.1% |
EBITDA % |
29.8% |
32.0% |
-214 |
Net Profit |
89.6 |
110.39 |
-18.8% |
NSDL shares ended Wednesday's session 2.65% higher at ₹1,011.85. Despite the uptick, the stock is down 5% so far in 2026.
Excluding Wednesday's gain, the stock had declined in each of the previous eight consecutive sessions.
From its 52-week high of ₹1,425, NSDL shares have corrected by nearly 30%.
