Why NSDL Share Price is Rising

Today, 8 August, the Indian stock markets declined in early trade after the US doubled import tariffs on Indian goods to 50%.

The BSE Sensex declined by 0.70% or 557 points at 80,054 points. The NSE Nifty fell 169 points at 24,427 points. NSE top losers include Tata Motors, Grasim Industries, and Adani Ports, which have seen declines.

Despite the weakness, one stock that is rising is National Securities Depository of India (NSDL).

The stock has surged 14% today and is up 55% from its IPO price of Rs 800 since listing on 6 August.

Let's tell you about the reasons for the same...

4 Reasons Why NSDL's Share Price is Rising?

#1 Huge Oversubscription and Post Listing Demand

The IPO was oversubscribed 41 times. Investors who did not receive any shares during allotment are now buying the shares from the open market.

This has led to a huge demand for shares of the company, resulting in a sharp surge since listing on 6 August 2025.

#2 Duopoly Business Offers Long Term Opportunities

The depository business in India is a duopoly dominated by two players: NSDL and Central Depository Services (India) Limited (CDSL).

NSDL manages a significantly larger value of securities under custody. This creates huge opportunities for the company given the rapid expansion of the capital markets in India.

This has resulted in heavy buying in the shares of NSDL.

#3 Taking Cues from CDSL

CDSL, the only other listed depository, has generated solid returns for investors in the last few years.

Investors believe that NSDL can replicate returns like CDSL. Also, in terms of owning shares of a depository, the options were limited.

Now with NSDL's shares being, listed investors have an alternative and are buying into the shares of the larger depository.

#4 Board Meeting on 12 August

The board of NSDL is slated to meet on 12 August to consider and approve unaudited standalone and consolidated financial results of the company.

There might be buying interest in the stock ahead of the board meeting.

A Look at the Financials

Financial Metric (Rs m)	FY25	FY24
Revenue from Operations	14,201	12,682
EBITDA	4,929	3,811
Net Profits	3,431	2,754
EPS	17.16	13.77

Source: Company

NSDL reported good numbers for FY25 when compared to the previous year. Revenues grew 12.41% YoY from Rs 12,682 m to Rs 14,201 m. The net profit at Rs 3,431 m, was up 24.57% YoY.

The increase in revenue and profit reflects steady business growth driven by higher transaction volumes, increased assets under custody, and operational efficiency.

What Next?

The Indian securities depository market is a regulated duopoly where NSDL leads in institutional, high-value assets and a broader range of services, while CDSL leads in retail investor volume.

NSDL's revenue benefits from its stable, recurring fees from custody, issuer fees, and transaction charges. It also has subsidiaries like NSDL Payments Bank and NSDL Database Management Ltd that diversify its income.

The company primarily serves large institutional clients such as foreign portfolio investors, mutual funds, and corporates.

This ensures revenues that are assured and stable, which is a big positive. According to media reports, 85% of NSDL's revenues are recurring.

As capital markets grow, NSDL's dominant position, particularly among institutional investors and high-value assets, reinforces its leadership in the depository space. This enhances its ability to capture more business, maintain pricing power, and attract strategic partnerships.

Going forward, more active trading and settlements in the securities market will lead to increased transaction volumes. This translates into higher earnings from transaction fees, custody charges, and other related services.

About NSDL

NSDL is India's first and largest central securities depository. It provides electronic depository services that enable investors, brokers, custodians, and issuer companies to hold and trade securities in dematerialised (electronic) form, replacing the traditional paper-based share certificates.

It improves efficiency, safety, and speed of securities transactions by allowing ownership transfers through simple electronic account transfers rather than physical paperwork.

To know more, check out NSDL's fact sheet.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...