National Securities Depository Ltd

- NSDL is significantly increasing its capital expenditure (capex) compared to the previous year, with a multiple increase from the INR 35 crore level. - Capex focus areas include automation to enhance operational efficiency and reduce costs. - Investments are being made to strengthen cyber security, technological resilience, uptime, and speed, recognizing NSDL as critical national infrastructure. - Capacity building is underway to handle increased volumes and new financial instruments like debt. - Technology investments also cover improving customer experience across depository participants (DPs), brokers, mutual funds, FPIs, and other market participants. - Operational expenses (opex) will also rise concurrently due to investment in skilled manpower and technology. - NSDL remains open to new opportunities aligned with market demand and regulatory changes and has launched products like the Distributed Ledger Technology (DLT) platform recently to boost revenue streams.

- NSDL expects sustained growth driven by an increase in unlisted companies dematerializing, which nearly doubled from ~43,600 to 84,064 in the last 12 months. - Incremental addition of about 4,000 unlisted companies per month is ongoing, suggesting continuous expansion in issuer income. - There is a strong focus on technology investments—automation, cybersecurity, and customer experience—to improve operational efficiency and support volume growth. - NSDL aims to diversify revenue streams by enhancing transactional charges through new services like e-voting, proxy advisory, and API-enabled mutual fund dematerialization. - Market share gains in both listed and unlisted segments signal growing volumes; Q1 FY26 market share in unlisted equity dematerialized reached 73.2%. - NSDL is optimistic about digitization and inclusion initiatives via subsidiaries, including Payments Bank and other growth verticals. - Capex and opex in technology are expected to increase substantially compared to last year to accommodate growth and new instruments.

- NSDL expects continued growth in earnings driven by: - Expansion in unlisted company dematerialization, which nearly doubled over the past year to 84,064 companies, offering a large opportunity. - Incremental market share gains in Demat accounts, with additional focus on onboarding new age brokers and deepening relationships with existing brokers. - Increased investments in technology, especially automation, cybersecurity, user experience, and capacity building, to enhance operational efficiency and customer satisfaction. - Diversification across multiple revenue streams beyond transactional fees, including recurring issuer custody fees, e-voting, proxy advisory, and new products like the Distributed Ledger Technology platform. - Payment Bank focus on higher-quality customer acquisition leading to improved margins over the medium to long term. - Short term operating expenses expected to increase due to tech investments and manpower costs but are aligned with growth objectives. - Dividend increase signals confidence in steady profitability and cash flow.

The document does not explicitly mention the current or expected order book or pending orders for National Securities Depository Limited (NSDL). However, insights related to business growth and operational scale include: - NSDL has over 90,000 companies in its unlisted segment, which has nearly doubled in the last 12 months, indicating a growing business pipeline. - Around 4,000 new companies are being dematerialized monthly, reflecting steady onboarding activity. - The business has a diversified revenue model with significant recurring income from custody fees and transactional revenues linked to services like e-voting and settlement fees. - The company is focusing on automation, cybersecurity, customer experience, and capacity building to handle increased volumes and new instruments. - No specific numerical data on order book size or pending orders is provided in the excerpts.

- There is no mention of any current or planned fundraising through debt or equity in the provided document. - The company holds approximately INR 2000 crores in investments, including deployable cash invested in government securities, mutual funds, and corporate bonds. - The board will evaluate deployment of cash as deemed appropriate but no active fundraising plans are reported. - The board has indicated an increase in dividend payout as an indicative gesture but no new equity or debt issuance plans. - Overall, the company focuses on internal cash management and strategic investments rather than external fundraising at this time.