Neutral NSDL; target of Rs 1100: Motilal Oswal

Neutral

Motilal Oswal's research report on NSDL

NSDL’s operating revenue remained flat YoY but declined 10% QoQ to INR3.6b (8% miss) due to a 17%/3% QoQ decline in the Depository/Banking segments. For 9MFY26, revenue was flat YoY at INR10.7b Operating expenses declined 7% each YoY/QOQ to INR2.5b. Employee costs grew 46%/12% YoY/QoQ, while other expenses declined 15%/11% YoY/QoQ. EBITDA rose 18% YoY (in-line) but declined 16% QoQ to INR1.1b, resulting in an EBITDA margin of 29.9% vs. 25.1% in 3QFY25 and 32% in 2QFY26. For 9MFY26, EBITDA grew 16% YoY to INR3.3b.

Outlook

We reiterate our Neutral rating on the stock with a one-year TP of INR1,100 (premised on a P/E multiple of 42x on FY28E earnings).

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