National Securities Depository (544467) Q3 25/26 earnings summary

Executive summary

• Maintains leadership as India's largest depository with 86.2% market share by total demat custody value and 43.2 million beneficiary owner accounts as of December 2025.

• Market sentiment in India remains subdued in the near term due to global geopolitical uncertainties, weaker earnings, and rupee depreciation, leading to significant FII outflows of $18.9 billion in 2025, while domestic investors provided stability with net inflows of INR 780,000 crore, supported by robust SIP flows.

• Demat account growth decelerated in Q3 FY26, with 89 lakh accounts added versus 99 lakh in Q3 FY25, but the total industry base reached 21.59 crore accounts.

• Expanded digital offerings and launched new products, including a unified investor app, digital onboarding for HUF joint accounts, and enhancements to margin pledge processes.

• Key subsidiaries remain profitable, with strong growth in insurance policy digitization, KYC records, and digital banking services.

Financial highlights

• Standalone Q3 FY26 total income was INR 198.7 crore, up 15.4% YoY; PAT was INR 77.9 crore, flat YoY due to a one-time tax item; excluding this, PAT would have risen 10.3%.

• Consolidated Q3 FY26 total income was INR 394 crore, up 0.8% YoY; PAT was INR 89.7 crore, up 4.5% YoY; excluding the tax item, PAT rose 13.3%.

• Standalone EBITDA margin for Q3 was 60.5%; PAT margin was 39.2%, or 43% excluding the tax impact.

• Standalone Q3 operating profit up 9.2% YoY to ₹82 crore; operating margin at 48.5%.

• Basic and diluted EPS for Q3: standalone ₹3.89, consolidated ₹4.48.

Outlook and guidance

• Management expects continued momentum in banking services and payment bank business, driven by CASA and UPI acquiring, but refrains from providing specific forward guidance.

• Incremental market share gains in demat accounts are expected to become visible from the second half of calendar year 2026 as new DPs scale up.

• Management highlights continued focus on technology-driven growth and expanding digital services.

• Additional provision of ₹60.83 lakhs (standalone) and ₹195.03 lakhs (consolidated) made for gratuity due to new Labour Codes; further impacts will be recognized as rules are notified.