Battle between NSDL and CDSL: Which Investment Yields More Now? Critical Factors to Consider Post-NSDL's 33% Spike after Listing
CDSL Outperforms NSDL in Financial Performance and Market Interest
After their respective listings on the Indian stock market, CDSL has shown a stronger performance in financial metrics, profitability, and market interest, although NSDL maintains a stronger market position in assets under custody and institutional relationships.
Financial Performance
CDSL exhibits higher profitability metrics, with FY25 net profit of ₹526 crore compared to NSDL’s ₹343 crore. CDSL’s Return on Equity (ROE) stands at around 29.9% in FY25, significantly higher than NSDL’s 17.11%. CDSL also shows superior profit margins, with net profit margins close to 47% versus NSDL’s range of 20-23%.
Though NSDL’s revenue is higher (₹1,535 crore in FY25 vs. CDSL’s ₹1,199 crore), CDSL records a much stronger revenue CAGR of about 39.5% over three years, compared to NSDL’s 17.9%. This indicates faster top-line growth for CDSL, driven primarily by its dominant retail presence and surge in new demat accounts post-COVID.
CDSL demonstrates better operational leverage and cost efficiency, reflected in EBITDA CAGR of 32.5% versus NSDL’s 22.5% over three years. NSDL’s model is considered more cost-intensive, largely due to its focus on institutional clients.
Market Position
NSDL leads substantially with an AUC of ₹464 lakh crore in FY25, far exceeding CDSL’s ₹71 lakh crore. NSDL holds approximately 85-87% of the total securities, focused on large institutional investors, mutual funds, banks, and insurance companies, which explains the higher average wallet size (~₹1.18 crore per account vs. CDSL’s ~₹5 lakh).
CDSL has a dominant position among retail investors, especially in new demat account additions, driven by many small ticket, retail investor accounts. NSDL’s strength lies in servicing fewer but larger, institutionally driven accounts.
Investor Interest and Market Valuation
CDSL trades at a much higher price-to-earnings ratio (P/E) of about 68x, reflecting investor optimism about its growth and profitability potential, whereas NSDL trades at a comparatively modest P/E of 47x. Similarly, NSDL looks cheaper on price-to-book value (P/BV) ratio (8x vs. CDSL’s 20x), presenting a potential value opportunity but less investor enthusiasm.
NSDL's IPO raised over ₹4,000 crore from institutional investors and had a strong listing debut with about 33% post-listing surge, showing solid demand and market momentum. CDSL, having listed earlier, sustains strong market investor interest due to robust financial metrics and retail presence.
Recent Quarterly Performance
However, CDSL’s June quarter in 2025 showed a 23.6% YoY fall in net profit and contraction in EBITDA margin to 50.4%, mainly due to rising operational costs and flat revenue growth, which might temper short-term enthusiasm.
Summary
In conclusion, CDSL leads in profitability, growth, and investor enthusiasm, especially due to its retail market dominance, while NSDL commands a larger institutional market share with a significantly bigger asset base but operates a more cost-intensive model with slower growth and lower margins.
Listing Details
- National Securities Depository (NSDL), India's oldest and largest depository, made its stock market debut on August 6 at a listing price of Rs 880.
- CDSL has a market cap of nearly Rs 33,000 crore.
- The listing performance of the NSDL IPO is maintaining momentum.
- The NSDL IPO was heavily subscribed by institutional investors.
- Looking longer term, CDSL is still in the green, up 21% in six months and 28% so far in 2025.
- The stock price of NSDL surged over 33% in just two days, trading around Rs 1,246 as of August 7.
- CDSL's margins contracted to 50.4% in the June quarter, a significant dip from 60% last year.
- The stock price of NSDL is currently trading at Rs 1,246, with a 52-week high of Rs 1,299.
- Despite CDSL outperforming NSDL in financial performance and market interest, NSDL's asset under custody (AUC) and institutional relationships remain stronger, with an AUC of ₹464 lakh crore in FY25.
- CDSL's strong financial metrics include a net profit of ₹526 crore in FY25, an ROE of 29.9%, and a net profit margin close to 47%, significantly outperforming NSDL's corresponding figures.
- In terms of investor interest and market valuation, CDSL trades at a higher price-to-earnings (P/E) ratio of about 68x, reflecting investor optimism about its growth and profitability potential, while NSDL trades at a comparatively modest P/E of 47x.
- The listing details reveal that NSDL, India's oldest and largest depository, made its stock market debut at a listing price of Rs 880, while CDSL's market cap is nearly Rs 33,000 crore.
- Looking forward, investors might find value in NSDL due to its lower price-to-book value (P/BV) ratio (8x vs. CDSL’s 20x), despite less investor enthusiasm, as it operates a cost-intensive model with slower growth and lower margins compared to CDSL.
