NSDL leads revenue & custody value, CDSL tops profits & retail accounts ahead of ₹4,012 cr OFS.
National Securities Depository Limited (NSDL) launches its ₹4,011.6 crore Offer for Sale (OFS) IPO on July 30, 2025. The issue, priced at ₹760-₹800 per share, runs until August 1, with listing slated for August 6 on BSE. As India's oldest depository enters the public market, a stark contrast emerges with its sole rival, listed Central Depository Services (India) Limited (CDSL), across critical financial and operational metrics.
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Financial Duel: Revenue vs Profitability
NSDL generated significantly higher revenue in FY25 (₹1,420.15 cr vs CDSL's ₹1,082.21 cr), driven by its dominance in high-value institutional custody. However, CDSL demonstrated superior profitability, reporting a Profit After Tax (PAT) of ₹526.33 crore – 53% higher than NSDL's ₹343.12 crore. CDSL's PAT margin (48.63%) more than doubled NSDL's (22.35%), reflecting its leaner cost structure focused on retail scale. CDSL also boasts a higher Return on Equity (29.90% vs NSDL's 17.11%).
FY25 Financial Snapshot (₹ Crore)
| Metric | NSDL | CDSL | Advantage |
|---|---|---|---|
| Revenue | 1,420.15 | 1,082.21 | NSDL |
| PAT | 343.12 | 526.33 | CDSL |
| PAT Margin (%) | 22.35% | 48.63% | CDSL |
| ROE (%) | 17.11% | 29.90% | CDSL |
| Net Worth | 2,005.34 | 1,760.35 | NSDL |
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Operational Divide: Value vs Volume
The core strategic difference is starkly visible operationally. CDSL dominates in account volume with 15.3 crore demat accounts (79.5% market share), overwhelmingly retail. NSDL, with just 3.95 crore accounts (20.5% share), commands a colossal 86.81% share of the total demat custody value (₹464.16 lakh cr vs CDSL's ₹70.52 lakh cr), highlighting its institutional stronghold. Consequently, NSDL earns nearly triple the transaction revenue per account (₹91.69 vs CDSL's ₹33.21).
Market Share & Operational Metrics (FY25)
| Metric | NSDL | CDSL | NSDL Share | CDSL Share |
|---|---|---|---|---|
| Total Demat Accounts (Cr) | 3.95 | 15.30 | 20.50% | 79.49% |
| Demat Custody Value (₹ Lakh Cr) | 464.16 | 70.52 | 86.81% | 13.19% |
| Transaction Rev/Account (₹) | 91.69 | 33.21 | - | - |
| Share in Unlisted Companies (Equity) | - | - | 73.04% | 26.96% |
| Market Share - Active Instruments | - | - | 65.27% | 34.73% |
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Client Base & Revenue Streams
CDSL leverages a much wider network of Depository Participants (574 vs NSDL's 294) to service its massive retail base. NSDL excels in serving institutional clients and issuers (79,773 vs CDSL's 35,922). Both rely heavily on transaction charges (~50% of revenue) and custody/annual fees (~34%).
Client Profile & Revenue Mix
| Profile/Mix | NSDL | CDSL |
|---|---|---|
| Depository Participants | 294 | 574 |
| Issuers | 79,773 | 35,922 |
| New Investor Accts (FY25 Cr) | 0.37 | 3.77 |
| Revenue: Annual/Custody Fees | 34.50% | 33.11% |
| Revenue: Transaction Charges | 49.46% | 51.60% |
India's depository system, established by the 1996 Depositories Act, moved from cumbersome paper shares to digital efficiency. NSDL, the pioneer (1996), was joined by CDSL in 1999. The market has grown rapidly (CAGR ~27.4% in accounts since FY17), fueled by financialization, T+1 settlement, and e-KYC. SEBI's exploration of T+0 settlements signals further advancement.
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The NSDL IPO (entirely an OFS) offers investors exposure to India's capital market infrastructure growth, but highlights a strategic fork:
"NSDL brings institutional depth and higher-value assets, while CDSL thrives on retail expansion and margin efficiency," the analysis noted. Both benefit from a regulated duopoly with strong cash flows.
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The NSDL IPO subscription window opens July 30th. Investors now have a clear comparative lens: NSDL for institutional market depth and CDSL for retail scale and profitability. Both depositories are critical to India's expanding capital markets, poised to benefit from continued financial inclusion and market maturation. Post-listing, scrutiny will intensify on NSDL's ability to improve margins and CDSL's strategies to capture higher-value segments.
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