- NSDL holds about 86% of India's demat assets and favourable valuation will likely continue pressuring CDSL share price.
CDSL share price continues to slide as investors dump it in favour of rival NSDL. With the latter’s IPO having opened on July 30, CDSL’s recent earnings call has returned to focus, and the unflattering numbers have provided fuel for a higher downward pressure on CDSL share price.
As per the earnings results released by Central Depository Services (India) Limited (NSE: CDSL) on July 28, consolidated net profit for its Q1 FY2026 declined by 23.7% to ₹102.4 crore on a yearly basis, with revenue rising by less than 1% to ₹256 crore. In addition, its EBITDA margin shrunk from 60% to about 50.4%, amidst a 27% rise in operating expenses. As a result, investors are buying into the upbeat sentiment surrounding NSDL IPO which opened to a high demand and premium valuations.
NSDL holds about 86% of India’s demat assets and its valuation of 47x FY25 earnings compares more favourably than CDSL’s current valuation of about 62x. The perceived overvaluation will likely continue exerting downward pressure on CDSL share price through its competitor’s IPO, as some investors see it as a more financially disciplined alternative with a longer growth head room.
Meanwhile, NSDL’s ₹4,012 crore IPO opened to great success on Wednesday, with full subscription reported across institutional and retail allocations. The second day saw its price rise to a premium of 2x, signaling an upbeat expectation of its listing price, which could cross the ₹140 mark.
CDSL Share Price Prediction
CDSL share price pivots at ₹1,507 and action below that level signals control by the sellers. That momentum will likely find the first support at ₹1,471. However, an extended control by the sellers will break below that level and clear the path to potentially test ₹1,415.
Alternatively, going above ₹1,507 will favour the buyers to take control. In that case, initial resistance will likely be at ₹1,545. The downside narrative will be invalid if the stock breaks above that level, and an extended control by the buyers could push the action higher and test ₹1,600.
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