Why NSDL Share Price is Falling

Today, 14 August, the Indian stock markets are showing mixed but slightly positive movement amid volatile trade and mixed global cues.

At the time of writing, the BSE Sensex was trading at 80,613 points, up marginally by about 0.09%, while the NSE Nifty50 is at 24,628, inching up by a small 0.04%.

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

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

2 Reasons Why NSDL Share Price is Falling

#1 Q1 FY26 Results

While the company did report a good set of numbers, investor expectations were higher.

NSDL saw its total income increased from Rs 1,565 m in Q1 FY25 to Rs 1,904 m in Q1 FY26, a growth of 21.68% YoY.

The net profit after tax grew 24.01% YoY from Rs 666 m in Q1 FY25 to Rs 826 m in Q1 FY26. While the YoY growth was good, the sequential, i.e., QoQ growth, was what led to disappointment. NSDL saw QoQ growth fall 0.76% in terms of total income, while net profits grew 9% QoQ.

#2 Profit Booking

The stock of NSDL got listed on 6th August. On the same day the stock closed higher by 17% from the IPO price.

On 8 August and 9 August, the stock jumped a total of 35%, taking cumulative gains to 52% in 3 trading sessions.

After a steep run, the stock fell despite a decent set of Q1 FY26 numbers. The fall in the last 2 days can be attributed also to profit booking.

What Next?

NSDL saw its market share increasing in the unlisted market as the number of companies admitted in Q1 FY26 stood at 10,392, with overall market share 73.2% (equity) compared with Q1 FY25 at 70.8%.

The demat account (net BO A/C) market share on a run rate basis for Q1 FY26 stood at 15.5% v/s Q1 FY25, with the incremental market share gain at 9.4%.

The demat accounts crossed 40 m as of 30 June 2025.

The company has taken initiatives in the last few quarters, which should help benefit investors and hence opening of new accounts. It has introduced common contract note via STeADY Platform. This helps investors consolidate trades across exchanges into one harmonised note for easier reporting.

NSDL has also introduced an API-based conversion to demat form, which enables seamless transfer of mutual fund units from physical to dematerialised format.

The company has also streamlined the account closure process and clients can now request closure and transfer of joint demat accounts online.

Coming to future performance, 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 mainly 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 income.

Going forward, more active trading and settlements in the securities market will lead to increased transaction volumes handled by NSDL. This should help boost earnings from transaction fees, custody charges, and other related services.

How Shares of NSDL have Performed Recently

NSDL shares got listed on 6 August. The stock on 14 August trades at Rs 1,176 on the BSE, which is a gain of 47% over the IPO price of Rs 800.

The stock hit a 52-week high of Rs 1,425 on 11 August 2025. The stock also hit a 52-week low of Rs 880 on 6 August 2025.

About NSDL

NSDL is one of the largest depositories in the world. It has established a state-of-the-art infrastructure that handles most of the securities held and settled in dematerialised form in the Indian capital market.

NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimise risk and reduce costs.

The company plays a central role in developing products and services that will continue to nurture the growing needs of the financial services industry.

It provides bouquet of services to investors, stockbrokers, custodians, issuer companies etc. through its nation-wide network of depository partners.

To know more, check out NSDL 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.

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