NSDL shares drop 23% from post-listing highs; analysts advise on next steps for investors

Shares of National Securities Depository Ltd (NSDL) declined 1.94 per cent on Tuesday to close at Rs 1,103.95. With this, the stock has dropped 22.53 per cent from its post-listing peak of Rs 1,425, recorded on August 11, 2025, shortly after debuting on August 6. Despite the correction, the stock still trades 37.99 per cent above its initial public offering (IPO) price of Rs 800.

The company is scheduled to announce its Q2 FY26 results on November 13. Commenting on the stock's performance, Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "The stock was in a momentum zone post listing. At present, it is under consolidation ahead of the quarterly results. Investors with a long-term view should add NSDL on dips in a staggered manner, given the kind of market infrastructure and deposit business in India."

In Q1 FY26, the Mumbai-based securities depository reported a 15.16 per cent year-on-year increase in consolidated net profit at Rs 89.62 crore, compared with Rs 77.82 crore in the same quarter last year. Revenue from operations declined 7.49 per cent to Rs 312.02 crore from Rs 337.29 crore, while total expenses eased to Rs 228.03 crore.

From a technical perspective, an analyst suggests the stock may find support at Rs 1,075. AR Ramachandran, a Sebi-registered analyst, noted, "NSDL's stock price is bearish but also oversold on daily charts with next support at Rs 1,075. A daily close above resistance of Rs 1,151 could lead to an upside target of Rs 1,255 in the near term."

As the first depository in India, NSDL is positioned to benefit from the country's growing financialisation trends. With demat penetration at just 15 per cent compared to over 60 per cent in the United States, the company has significant headroom for growth across the Indian capital market ecosystem.