NSDL VS CDSL - Duopoly With Monopoly Like Power

Summary

NSDL and CDSL india's only two share depositories which play a critical behind the scenes role by holding shares in digital demat form and enabling secure transactions. As more and more people invest, both companies can naturally see growth in demat account openings, asset custody, and trading volumes.

 

                                                                   

 

Not Rivals — Just Rulers of Different Worlds

While  NSDL and CDSL operate in the same space but they serve different segments of the market:

• CDSL primarily caters to retail-focused brokers and individual investors.

• NSDL largely works with institutional clients and traditional financial firms.

As India’s economy continues to grow and move closer to developed nation status, more and more institutional investors from global funds to large financial firms are betting on India's long-term potential by increasing their investments in the country.

That's where NSDL comes in.

NSDL isn’t a household name, but it plays a critical behind-the-scenes role in India’s financial markets. It acts as the custodian and depository for those big investors, safely holding and managing the securities they buy in Indian companies and that’s why NSDL is one of the most important businesses in the country because as India attracts more global capital, NSDL becomes the gatekeeper of that growth.

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 Financial Overview & Highlights

 

             

 

• EPS,EBITDA & PAT are consistently rising
  → Shows strong profitability and efficient operations
  → Growth is steady, not slowing sign of a healthy, scalable business

 

Market Position Snapshot (FY24/25)
Metric	CDSL	NSDL
Demat Accounts	15.5 crore (155 million)	3.9 crore (39 million)
Market Share (Accounts)	80%	20%
Assets Under Custody	₹76 lakh crore	₹495 lakh crore
Market Share (AUC)	13–15%	85–87%

• ₹495 lakh crore in assets under custody
  → Managed mainly for institutional clients
  → A massive and growing base that reflects trust and scale

 

Financial Performance (FY24/25)
Financial Metric	CDSL	NSDL
Revenue	₹984.6 crore	₹1,365.7 crore
Other Income	₹136.4 crore	₹97.5 crore
Profit After Tax (PAT)	₹462.1 crore	₹274.8 crore
Profit Margin	44%	22%

• Revenue growth is directly tied to India’s economy
  → As market activity increases, NSDL naturally earns more
  → Well-positioned to grow with India’s expanding investment ecosystem

 

Valuation Overview
Valuation Metric	CDSL	NSDL
P/E Ratio	70×	76×
Price-to-Book (P/BV)	20.92×	12.4×
Market Cap / Sales	43.2×	15.0×

• Valuations may seem high, but are justified
  → NSDL operates in a near-monopoly setup with limited competition
  → Premium valuation reflects confidence in its long-term dominance

 

Solvency Ratios
Ratio	Value
Debt-to-Equity Ratio	0.02
Debt-to-Asset Ratio	0.17
Interest Coverage Ratio	173

• Very low financial liabilities — strong balance sheet
  → Debt-to-Equity: Low borrowing and safer capital structure
  → Debt-to-Asset: Most assets are funded internally and financially sound
  → Interest Coverage: Earnings easily cover debt costs along with no stress from liabilities

 

Major Shareholders of NSDL (Pre-IPO Structure)
Shareholder	Stake (%)
IDBI Bank	26%
National Stock Exchange (NSE)	24%
State Bank of India (SBI)	5%
HDFC Bank	5%
Standard Chartered Bank	3%
Citibank	2%
Canara Bank	2%
Deutsche Bank	2%
Union Bank of India	2%
Others (Public Shareholding / Institutions)	Remaining 29%

• Backed by India’s top financial institutions
  → Includes major banks and the National Stock Exchange, which handles 95% of India's market trading
  → This adds credibility, stability, and supports long-term growth potential

 

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Analyst Talk: NSDL is growing quietly, but powerfully

Let’s talk about NSDL, why it’s more than just another stock.

As India’s economy keeps gaining momentum, global investors are shifting serious capital in the country. They’re moving out of uncertain regions and looking for long-term opportunities and India is at the top of that list.

Now here’s the part most people overlook:

All that institutional money coming into India has to go through NSDL.

NSDL is the central infrastructure that stores and transfers shares for institutional investors. It’s regulated by SEBI, backed by the Government of India and it’s one of only two depositories in the country, the other being CDSL, which focuses more on retail.

So, think about it when institutions invest in India, NSDL is where their assets are held.
That makes it essential to the market, not optional.

It’s:

• A high margin, asset-light business

• With monopoly like power in its space

• And it grows every time more money flows into India
  In short — if you're bullish on India’s future, NSDL is a smart, strategic way to play that trend.You're not just investing in a company.You’re investing in the system that powers the entire market.

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Final Insights: WHY TO INVEST 

The connection is simple:

The more global money flows into India, the more important and profitable NSDL becomes.

And that flow is already happening and expected to accelerate. As India opens up more, reforms deepen, confidence grows and institutional capital keeps coming in. NSDL will be there at the center of it all, growing quietly but powerfully alongside the country.

So even if the valuations seem high, it doesn’t matter much. These are monopoly-like businesses in a fast-growing market. When you're the only real player in your space, you earn the right to grow big and stay big.

In short, NSDL is one of those rare businesses positioned to benefit directly from India’s rise on the global stage and that’s a big reason it could deliver strong, compounding returns in the years ahead. To explore more such high-conviction opportunities, visit https://www.sharescart.com/  your edge in discovering businesses at the heart of India's next growth phase.