NSDL vs CDSL: India’s capital markets are undergoing a transformation — and right at the center of this evolution are two core institutions: National Securities Depository Ltd (NSDL) and Central Depository Services (India) Ltd (CDSL). As NSDL’s IPO opens for subscription from July 30 to August 1, the comparison with listed rival CDSL becomes more relevant than ever.
For investors seeking long-term value, the key question is: Which depository offers better potential — NSDL or CDSL?
Let’s break it down.
Business Overview: Institutional Strength vs Retail Scale
NSDL: The Institutional Backbone
NSDL is India’s largest depository in terms of issuers, asset value, and demat settlement volumes. It serves as the preferred custodian for large institutions like mutual funds, pension funds, insurance companies, and sovereign entities.
- Assets Under Custody: ₹464 lakh crore (as of FY25)
- Number of Demat Accounts: 3.95 crore
- Registered Depository Participants (DPs): 294
- Service Centers: 65,391
- Market Share in Demat Settlements: Over 66%
- Instruments Processed: 65.27% market share
CDSL: The Retail King
CDSL, on the other hand, has led the retail revolution in stock market participation.
- Demat Accounts: Over 15.29 crore — almost 4x of NSDL
- DPs: 581 (higher than NSDL)
- Assets Under Custody: ₹71 lakh crore
- Strong presence via fintechs & brokerages like Zerodha, Groww, etc.
CDSL’s growth has been powered by mobile-first platforms and a tech-friendly ecosystem, allowing rapid demat onboarding for retail investors.
Financial Performance: Profitability vs Revenue
CDSL FY25 Highlights:
- Net Profit: ₹526 crore (up 25% YoY)
- Revenue: ₹1,199 crore (up 32% YoY)
- Profit Margin: ~48%
NSDL FY25 Highlights:
- Net Profit: ₹343.12 crore (up 24.5% YoY)
- Revenue: ₹1,535.19 crore (up 12.4% YoY)
- Profit Margin: ~22%
CDSL’s leaner cost structure and retail-led scale give it stronger profitability margins. NSDL, though bigger in revenue, has a comparatively modest bottom line.
Valuation Snapshot
- NSDL IPO Price Band: ₹760–₹800
- IPO Size: ₹4,011.60 crore (Offer for Sale of 5.01 crore shares)
- Post-Issue Market Cap: ₹16,000 crore (approx.)
- P/E Ratio (FY25 earnings): ~47x
- CDSL P/E Ratio: ~65x (based on ₹25.2 EPS)
While CDSL is trading at premium valuations, NSDL’s IPO offers relatively better value entry at lower P/E multiples and institutional strength.
Risk-Reward Analysis
CDSL:
- Strengths: Retail dominance, high scalability, fintech partnerships
- Risks: High valuation, sensitivity to retail market cycles
NSDL:
- Strengths: Institutional trust, deep issuer integration, high-value assets
- Risks: Slower retail growth, higher operational costs
Expert Opinions
“CDSL offers faster returns but with higher risk. NSDL is better for those seeking stability and strategic depth in India’s financial ecosystem.”
— Mohit Gulati, CIO, ITI Growth Opportunities Fund
“Your investment decision boils down to whether you value scale (CDSL) or depth (NSDL). Both are irreplaceable in India’s equity future.”
— Anirudh Garg, Fund Manager, INVasset PMS
Should You Apply for NSDL IPO?
Brokerage Anand Rathi has given a clear “Subscribe” rating to NSDL’s IPO, citing fair valuation and long-term potential.
- RoNW: 17.1%
- P/E Valuation: Attractive compared to CDSL
- Growth Drivers: Financialization of savings, rising equity culture, deeper issuer participation
Final Verdict: NSDL vs CDSL — What’s Best for You?
Choose CDSL if you want:
- Exposure to India’s booming retail investing wave
- A business model built for scalability
- Strong profit margins and tech-first strategy
Choose NSDL if you want:
- Long-term play on institutional trust and asset depth
- More stable growth and lower volatility
- IPO value entry with less downside risk
Both companies are foundational to India’s capital markets — one thrives on retail reach, the other on institutional robustness.
In short:
👉 CDSL = Fast, high-growth, retail-fueled engine
👉 NSDL = Steady, institutional-value compounder
Final
India’s equity ecosystem is expanding — and both NSDL and CDSL are riding that wave. For investors with different risk profiles, both options provide compelling long-term value.
Apply for NSDL’s IPO if you’re seeking value. Hold or accumulate CDSL if you believe in retail-driven market expansion.