NSDL Delivers Double-Digit Revenue Growth in FY25

26 May 2025

• Financial Performance (FY25 vs FY24): NSDL reported a total income of ₹1,535 crore in FY25, registering a year-on-year (YoY) growth of 12.4% compared to ₹1,367 crore in FY24. This growth was primarily driven by a strong performance across all business segments, especially in depository services (₹619 crore) and banking services (₹720 crore), which witnessed YoY revenue increases of 33.2% and 28.4%, respectively. Other income also supported the topline with an 18.0% increase to ₹115 crore. On the profitability front, NSDL's profit before tax (PBT) stood at ₹453 crore, a significant increase of 27.7% from ₹355 crore in the previous year. After accounting for tax expenses, net profit rose 24.6% to ₹343 crore from ₹275 crore in FY24. The earnings per share (EPS) improved correspondingly to ₹17.2 from ₹13.8, indicating enhanced shareholder returns.
• Operational Metrics (FY25 vs FY24): NSDL demonstrated strong operational efficiency in FY25, with the net profit margin improving to 22.4% from 20.1% in FY24, reflecting better cost control and revenue growth. Total expenses grew at a modest pace, with employee benefit expenses increasing by 12.4% year-on-year to ₹139 crore, while other operating expenses rose by 5.0% to ₹891 crore. Despite the rise in expenses, the company’s EBITDA increased by 28.2% to ₹491 crore from ₹382 crore in FY24, driven by higher income and improved operational productivity. The EBITDA margin also strengthened to 32.0%, up from 28.0% in the previous year, indicating enhanced operating leverage. NSDL continues to maintain a very high interest coverage ratio, highlighting its low dependence on debt and strong ability to meet finance costs comfortably.
• Karvy Case Impact: ​The key concern is the ongoing legal case related to Karvy Stock Broking Ltd. In December 2023, the Securities Appellate Tribunal (SAT) directed SEBI, NSE, and NSDL to allow lenders like Axis Bank to invoke pledged shares held in Karvy’s demat accounts, or compensate them for their losses with interest—estimated dues being around ₹1,435 crore. NSDL, along with SEBI and NSE, has challenged this order in the Supreme Court, which has granted interim relief as of January 2024. The matter is now scheduled for hearing on July 15, 2025. NSDL maintains that its actions were in line with SEBI’s regulatory directions and supervised by NSE, and based on legal advice, has not made any financial provision for the case, as liability (if any) is currently uncertain. Looking ahead, NSDL’s focus on expanding its fintech and banking-related services, along with cost efficiency, is expected to support continued growth. Regulatory changes and reforms in India’s financial markets will also play a key role in shaping its future performance.
  
• Growth Outlook: NSDL enters FY26 with strong momentum, backed by ₹260 Crore+ in annual profit and a debt-free balance sheet. With over 3.4 Crore+ active demat accounts and ₹400 Lakh Crore+ in AUM (Assets under management), it remains a market leader in India’s depository infrastructure. Rising retail investor participation and increasing digital adoption in financial services are expected to boost demand for its core offerings. Depository and issuer services, which together contributed more than 85% of revenue, will likely remain the main growth engines. Though database services saw muted growth, they provide a stable income stream. NSDL’s strong cash position gives it headroom to invest in tech, scale new services, and tap into emerging fintech and regulatory opportunities.