N S D L Q1 FY27 Results (BSE: 544467)
Signal: Growth reaccelerated
The read
Consolidated revenue surged 65.6% YoY to ₹516.63 Cr on a tripling of banking services revenue, but the banking segment's low-margin profile (PBIT margin ~1.1%) compressed overall EBITDA margin by ~1000 bps to 28%. PAT grew only 9.6% as other income cushioned the bottom line. The standalone depository business remained steady (revenue +13.2%, PAT +7.9%), highlighting that group growth is concentrated in the low-margin banking subsidiary.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5.17 Cr | 65.6% | -66.2% |
| EBIT | ₹1.3 Cr | 8.3% | |
| Net profit | ₹0.98 Cr | 9.6% | |
| EPS | ₹4.91 | 9.6% |
P&L walk
Revenue surged 65.6% YoY to ₹516.63 Cr, driven primarily by the Banking services segment ( ₹313.84 Cr vs ₹132.82 Cr a year ago). Employee costs grew 40.9% YoY ( ₹54.00 Cr vs ₹38.33 Cr), but other expenses more than doubled ( ₹357.78 Cr vs ₹174.55 Cr), leading to EBITDA margin compression to 28% from 38% a year ago. Other income increased 26.2% YoY to ₹43.87 Cr, cushioning the bottom line. PAT grew 9.6% YoY to ₹98.19 Cr, in line with operating profit growth. No operating leverage as cost growth outpaced revenue.
Key positives
- Consolidated revenue growth of 65.6% YoY, driven by banking services segment tripling to ₹313.84 Cr (vs ₹132.82 Cr a year ago) — strong business momentum.
- PAT grew 9.6% YoY with EPS at ₹4.91, supported by other income (₹43.87 Cr, +26.2% YoY).
- Standalone depository business remains highly profitable (OPM 69.7%) with low debt (D/E 0.01).
Key concerns
- EBITDA margin contracted sharply by ~1000 bps YoY to 28%, as other expenses ( ₹357.78 Cr) more than doubled, outpacing revenue growth.
- Banking services segment, despite tripling revenue, has very low PBIT margin (~1.1%), suggesting the revenue growth comes at thin profitability.
- Other income comprised 34.1% of consolidated PBT (₹43.87 Cr of ₹128.84 Cr), making bottom line reliant on non-operating income.
- QoQ revenue declined 66.2% and PAT declined 74.1% from Q4FY26, reflecting significant seasonality.
Earnings quality: includes non-operating other income
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