Q2 FY27 results analysis · October 31, 2026
NSDL Q2 FY27 Results Analysis: Revenue Jumps 36%, Margin Compresses 463 bps
+10.9%PAT year on year, Rs. 122.45 Cr
Source: Quarterly results filing (BSE)
Quick summary
NSDL's Q2 FY27 numbers came in mixed, with revenue of Rs. 545.89 Cr (+36.46% YoY) and PAT growth of +10.93% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | October 31, 2026 |
|---|---|
| Revenue (Q2) | Rs. 545.89 Cr (+36.46% YoY) |
| PAT (Q2) | Rs. 122.45 Cr (+10.93% YoY) |
| EBITDA margin | 30.65% (-608 bps YoY) |
| EPS (Q2) | Rs. 6.11 (+10.69% YoY) |
Quarter Snapshot
NSDL delivered 36.46% consolidated revenue growth and 10.93% PAT growth, with the depository segment contributing 88.45% of segment results and database management margins expanding sharply. Margin compression persists YoY (standalone operating margin −463 bps), but sequential cost discipline (employee +1.34% QoQ) and capex down 33.69% YoY confirm the guided investment taper, setting up potential operating leverage in coming quarters. No numeric guidance exists to score against, and open contingencies (Rs.28.68 cr GST demand, Karvy/SAT) remain unprovided.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Standalone revenue | "likely ahead YoY on flows, against a stiff seasonal base… the YoY comp is the toughest of the year" | +11.58% YoY to Rs.227.80 cr | Played out |
| Consolidated revenue | "growth should decelerate sharply" after the Q1 NPBL peak | +36.46% YoY vs +65.6% in Q1; banking −6.73% QoQ | Played out |
| Margins | "compressing bias, with the first guided relief possible" | SA operating margin −463 bps YoY but +434 bps QoQ; employee +1.34% QoQ; capex −33.69% YoY | Partially |
| GST event | "any provision or interest/penalty quantification booked with Q2 numbers would move them" | No provision; matter contested; PAT unadjusted | Played out |
| Rates/treasury | rising G-Sec yields "support accrual income… but are a mark-to-market drag" | Other income +12.10% YoY standalone; no MTM split in filing | Partially |
| Flow/share metrics, unlisted band | watch-list items | Not disclosed in the Q2 filing — remains open for the call | Not observable |
| NPBL normalization | "NPBL normalisation after the Q1 card-onboarding peak" | Banking revenue −6.73% QoQ, result up on CASA/transaction mix | Played out |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Technology capex to decline in FY27 after Rs.106 cr FY26 spend | Q4 FY26 / Q1 FY27 earnings calls | H1 FY27 consolidated capex Rs.33.02 cr, −33.69% YoY | On Track |
| "Much lower" employee additions in FY27; hiring largely done by Q1 | Q1 FY27 earnings call | Standalone employee cost +1.34% QoQ (Rs.35.15 cr vs Rs.34.68 cr); YoY +22.27% is base effect | On Track |
| Custody fee "secular growth" | Q4 FY26 earnings call | Depository segment revenue +11.59% YoY (fee-line split not in filing) — proxy | On Track |
| "The depository business, not the bank, is the primary value driver" | prior-quarter calls | Depository = 88.45% of Q2 segment results on 41.73% of revenue | Confirmed |
| Payments Bank card-onboarding fees were pass-through and "peaked in Q1" | Q1 FY27 earnings call | Banking revenue −6.73% QoQ; segment result Rs.5.83 cr vs Rs.1.88 cr in Q1 | Confirmed |
| Technology/people investment front-loads costs; operating leverage to follow | Q1 FY27 call, MD & CEO | Margin still compressed YoY, but employee flat QoQ and capex −33.69% YoY — inflection starting | Too Early |
| No specific numeric guidance for 1–2 years; "current momentum" confidence | Q3 FY26 call (Jan 2026) | Q2 delivered +10.93% consolidated PAT growth | Consistent |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|
| BO/Demat accounts (mn) | 41.9 | 43.2 | 44.4 | 45.6 | — |
| Issuers registered | 102,238 | 107,051 | 111,379 | 115,107 | — |
| Incremental demat share | 17.6% | 14.65% | 14.0% | ~17.5% | — |
| NPBL customers (mn) | 3.3 | 3.75 | 4.4 | 5.0 | — |
| NPBL deposits (Rs. cr) | — | >475 | 521 | 477 | — |
Key Investment Insights
Key Positives
- Consolidated revenue grew 36.46% YoY to Rs.545.89 cr; standalone depository revenue grew 11.58% YoY to Rs.227.80 cr (+25.05% QoQ)
- Consolidated PAT grew 10.93% YoY to Rs.122.45 cr; standalone PAT jumped 42.11% QoQ to Rs.126.67 cr
- Database management segment result grew 83.56% YoY with margin expanding to 33.58% from 24.01%
- Banking services segment result grew 267.72% YoY to Rs.5.83 cr while pass-through revenue normalized (−6.73% QoQ)
- H1 consolidated capex fell 33.69% YoY to Rs.33.02 cr, confirming the guided FY27 capex decline; standalone employee cost nearly flat QoQ (+1.34%)
- H1 consolidated CFO of Rs.300.36 cr was 1.36x PAT; FCF of Rs.267.34 cr
- Depository segment delivered 88.45% of segment results on 41.73% of revenue, confirming the core profit engine
Risk Factors
- Standalone operating margin 463 bps below year-ago 52.77%; consolidated EBITDA margin fell to 30.65% from 36.73% YoY
- Consolidated other expenses rose 55.12% YoY and total expenses grew 47.61% YoY vs revenue +36.46%
- Trade receivables rose 48.46% since March 2026 to Rs.254.15 cr with H1 bad debts of Rs.26.41 cr (net charge Rs.3.76 cr after reversals)
- Unprovided GST demand of Rs.28.68 cr and Karvy/SAT matter (~Rs.1,435.05 cr system-wide dues) remain open contingencies
- Standalone PAT growth of 5.20% YoY trails standalone revenue growth of 11.58%
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