NSDL shares down nearly 10% in two sessions as profit booking continues after Q1

Shares of recently-listed Securities Depository Ltd. (NSDL) fell as much as 4% on Thursday, August 14, extending their two-day decline to nearly 10% amid sustained profit booking after the company's June quarter results.

The stock briefly traded higher in early deals before reversing gains to slip 2.74% to ₹1,173. Despite the pullback, it remains over 50% above its IPO price of ₹800.

In its first quarterly results as a public company, NSDL reported a 15.1% year-on-year (YoY) rise in consolidated net profit to ₹89.6 crore for Q1 FY26, aided by better operating performance.

Revenue from operations fell 7.4% YoY to ₹312 crore, but EBITDA jumped 18.3% to ₹95.6 crore, with margins improving to 30.6% from 24% a year ago.

Post-listing, NSDL's management told CNBC-TV18 that it aims to grow market share in the retail segment, with both business arms offering solid growth potential.

Market experts, however, see merit in taking some money off the table after the sharp rally.

Sunny Agarwal of SBI Securities said short- to medium-term investors could book profits, while long-term investors may use any correction to accumulate.

Ambareesh Baliga said that NSDL, once cheaper than rival CDSL at the IPO price, now looks expensive after the recent surge. He added that a rush of momentum traders has fueled the rise, making it an opportune time for IPO investors to switch back to CDSL.

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