NSDL’s operating revenue for Q1FY27 rose 66% year‑on‑year and 13% quarter‑on‑quarter to ₹5.2 billion. The jump was largely driven by a 47% beat in the banking services segment, which accounts for 61% of the company’s revenue mix.
Depository revenue, which makes up 35% of the mix, grew 13% YoY and 7% QoQ. In contrast, banking services surged 136% YoY and 18% QoQ, highlighting the strength of the company’s financial services arm.
Operating expenses climbed 92% YoY and 17% QoQ to ₹4.2 billion, 34% above analysts’ estimates. Employee costs increased 41% YoY, 10% higher than expected, while other expenses jumped 103% YoY, 39% over the forecast.
EBITDA rose 6% YoY to ₹1 billion but fell 3% QoQ, missing the target by 11% because of the higher operating costs. The EBITDA margin slipped to 19.5%, down from 30.5% in Q1FY26 and 22.7% in Q4FY26.
PAT for the quarter climbed 10% YoY and 9% QoQ to roughly ₹983 million, a 3% miss due to the cost increase. The PAT margin settled at 19%, lower than 28.7% in Q1FY26 and 19.7% in Q4FY26.
A one‑time card onboarding project for NSDL Payments Bank added to the revenue, including a joining fee shared with the implementation partner. Management expects the revenue to normalize from Q2FY27 toward 4QFY26 levels as transaction activity picks up.
Analysts have cut FY27 and FY28 earnings estimates by 1% and 2% respectively to reflect the higher operating expenses seen in Q1FY27. They project a revenue, EBITDA and PAT CAGR of 30%, 11% and 11% for FY26‑28E, and maintain a neutral rating with a one‑year target price of ₹930 based on a 40‑times FY28E earnings multiple.