Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
National Securities Depository Ltd (BSE: 544467) Q4 2026 Earnings Call dated May. 02, 2026
Corporate Participants:
Vijay Chandok — Managing Director and Chief Executive Officer
Jigar Shah — Chief Financial Officer
Analysts:
Anshuman Dev — Analyst
Pranesh Jain — Analyst
Amit Chandra — Analyst
Unidentified Participant
Ravi Kumar — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the National Securities Depository Limited Q4FY26 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will remain in the listen only mode as there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded.
I will now hand the conference over to Mr. Ansuman De from ICICI Securities Ltd. For opening remarks. Thank you. And over to you.
Anshuman Dev — Analyst
Good morning ladies and gentlemen. On behalf of ICICI securities, we welcome you all to this Q4 and FY26 results conference call of NSBL. We have with us the senior management represented by Mr. Vijay Chando, Managing Director and Chief Executive Officer. Mr. Jigar Shah, Chief Financial Officer. Mr. Sameer Patil, Chief Business Officer. Mr. Kothandamarang Pravakaran, Chief Technology Officer. Mr. Prasanth Bhagal, Chief Operating Officer. Mr. Sameer Gupte, MD and CEO, NSDL Database Management. Mr.
Abhijit Kamalpurka, Managing Director and Chief Executive Officer of NSDL Payments bank and Ms. Arju Bandalwal, invest Relations. I now hand over the call to Mr. Vijay Chandrup MD and CEO. Over to you, sir.
Vijay Chandok — Managing Director and Chief Executive Officer
Thank you very much, Anshuman. Ladies and gentlemen, a very good morning to all of you and a warm welcome to all our shareholders, investors, analysts joining us today for our Q4 and FY26 earnings conference call. I truly appreciate the continued trust that now over our 8.9 lakh valued shareholders have placed with us. And I’m truly pleased, particularly considering that we have a long weekend and some kind of a holiday season that all of you have taken the effort to join this call. Much appreciated as we close our first full financial year since our listing.
So let me begin by giving a little bit of a perspective of the environment because I strongly believe that it is important to understand our performance in the context of the environment in which we operate. The financial markets over the year reflected an evolving interplay to our mind between resilience and disruption. The first half was broadly constructive. Strong domestic consumption and an improving macroeconomic backdrop, keeping the sentiment somewhat positive, somewhat cautiously optimistic.
The second half, however, proved to be considerably more challenging. The West Asia conflict which erupted in quarter four, doesn’t seem to still have any clear resolution ahead of us during quarter four, the external macro pressures intensified, particularly towards the end of the quarter, with crude prices piping spiking sharply in March 2026, rising over 40% on a YoY at peak levels, while there’s been depreciation of the rupee quite sharply on a YOY basis, all this reflecting geopolitical supply disruptions and sustained capital outflows.
Indian equity faced sustained pressure throughout the year, actually, especially at the end of quarter four, where Nifty declined by 11.3%. Market activity remained subdued through January and February and March decline as well, driving overall quarter into what one would call some kind of a decisive weakness. The defining story of quarter four was the divergence between the FIIs and the domestic flows. The FPIS have been net sellers for most of the quarter, with March seeing a record monthly outflow of $12.7 billion.
Domestic institutional investors, however, were, I would say, very decent stabilizing force. In fact, the net DII inflows were at 1.4 lakh crore in March, which was the highest ever. SIP flows in March 26 to that record number, 32,000 crores. The monthly SIP run rate. This was about 25,900 crores in March 2025 a year ago, reflecting resilience of retail participation even during difficult times on the investor base. New DEMAT account additions slowed and slowed considerably, slowed to about 3.2 crore in FY26 down 4.1 crore in FY25 with March 2026 seeing the lowest monthly addition in nearly a year.
This moderation came even as the investor ecosystem continued to deepen with NSE unique investors registered investors base approaching a 13 crore mark by March 2026. The IPO activity remained at record levels during the first nine months, extremely good activity in the current quarter. The quarter four was somewhat sluggish, impacted by geopolitical headwinds. Overall, these trends point to a market that is consolidating and strengthening rather than losing debt. Near term volatility and moderation in incremental activity, investor participation is becoming broader and more structurally anchored, supported by resilient domestic engagement and a shift towards longer term investments.
This evolving profile provides meaningful headroom for renewed growth and as external conditions stabilize and confidence normalizes. With this in context now let me talk a little bit about the performance of NSDL during the quarter and some highlights of the year which spilled into the quarter and will still be on in the future. During the quarter and over the course of the year, as I mentioned, we had several initiatives. I will highlight some of the key ones. As I mentioned March 2026 we enabled the digital submission of Form 121 which was erstwhile Form 15G 15H.
This is a form that investors file for nil tax declaration Easing compliance one stop shop at the depository front Convenience for the investors, ease of business for the investors and supporting capital markets growth in the more medium term Effective March Sorry, effective April 1st we launched a woman demat plan offering a three year settlement waiver to promote greater participation of women in capital markets. Earlier a few quarters ago we had launched the YUA Plan similarly with a three year settlement fee waiver and we have now seen the YUA plan maintaining strong momentum and Today it contributes 21% of incremental demand sourcing.
So that has taken good wings. So we do hope that the Women’s plan will also take good wings over the quarters ahead. In October 2025 we had launched the revamped digital portal for FPI and fvci, simplifying onboarding and improving turnaround times for foreign investors and I think that is something which is gaining traction and we do expect that to continue to consolidate our position in the FPI market. NSDL continued to advance its digital transformation initiatives during the quarter including digital onboarding, API enhancement and enhancing customer facing services.
Everything to do with customer experience is being intended to get scaled up with I would say constructive and positive results visible to us. During the quarter the API interoperability was expanded with peering corporations and bond plan forms and earlier over the few quarters implementations such as direct payouts, common contract notes, margin pledges were completed. All this is strengthening operational consistency, investor protection and it’s certainly helping us scale up our business growth and revenue numbers.
In fact, at present we have more than 40 APIs launched which is perhaps ahead of everyone in our competing market space system. Resilience and scalability were further strengthened, further enhanced through upgrades in the core system. The infrastructure capacity was enhanced, observability and cyber security stance was significantly scaled up during the year. Further, NSDL consolidated its investor awareness program because we believe investor and informed investor will really help the capital markets in the more medium term.
This is across online, offline and hybrid forms of communication and training to them, across corporates, across defense, across educational, institution women focused forums so that we are able to cover a diverse set of customers across the length and breadth of the country NSDL conducted in the whole fiscal about 2,700 programs reaching 1.7 lakh almost participants across 37 sorry 34 states and union territories and 16 local languages. During the quarter the total number of demat accounts for NSDL reached 4.44 crores.
We also reached 311 DPs during the year we added 21 DPs which is a record for us. And these 311 DPs provide service through 57,000 plus service centers and branches and more than 2000 cities and small towns. At present we hold about 86% of the total value of custody managing about roughly 4.77.29 lakh crore of securities which is approximately 5 trillion US dollars and which is close to 80% of the equity market share. Our incremental market share in net demat account addition improved in FY26 and reached at 15.4 for the full year compared to much lower level that was there last year.
This improvement reflects a strong pickup in account additions which came in at about 49.4 lakh accounts in FY26 compared to 36.8 lakh in FY25. And I’m sure all of you appreciate that the number of accounts sourced in FY26 was far lower for the industry compared to account sourced. So in such a context we have actually seen a clear divergence. We’ve grown even compared to our last year an absolute number of accounts sourced. This was thanks to our digitization efforts, thanks to our ability to onboard some new fintechs and some impact.
Of the 21 DPs that got added during the year, only partial impact is visible. On a quarterly basis the momentum strengthened with incremental market share on quarter four coming in at about 14%. It was higher compared to quarter four of last year which was at 9.6, but it was marginally lower compared to the previous sequential quarter which was at about 14.5. And this is attributed to a specific large IPO that happened during this quarter. And we find that whenever a specific episodic large IPO happens, it tends to benefit competition more than us.
The second aspect during this quarter that has to be kept in mind that many of our large DPs are bank based DPs. The bank based DPs tend to be very very careful about not working with inoperative and dormant accounts. So there’s a tendency during the quarter which ends the year to close such accounts. So on a net basis you would have seen that little bit of a reduction in market share. We believe it is episodic otherwise the undertone remains constructive and positive and when we measure ourselves on gross basis actually we are holding market share.
Well, it is a net basis where there has been a little bit of a marginal decline in quarter four on a sequential basis. Although yoy it is clearly up as we continue to expand our issuer base. We have now crossed one 10,000 issuers. Our e voting platform has helped many leading companies to offer e voting Services and with 5,287 e voting events conducted during the year, which is significantly higher compared to what we did last year, there’s also been gain in market share on that front. I’ll now take you through very briefly the key financials which is already available on our website and I’m sure all of you have already been used through it.
I would like to just mention and highlight that NSDL’s performance is best assessed on a y o y basis given the seasonality and inherent nature of our business because some of the businesses like E voting and dividend income from subsidiaries happen in specific quarters and accordingly I will focus on the quarter and give you a brief Update on a yy basis. On quarter four total income came in at about 195.4 crore. I’m talking standalone now compared to 191.9 crore which is up by little about little under 2%.
PAT came in at about 79.7 crore compared to 75.8 crore last year which is up by about 5%. For the full year PAT stood at about 360 crore on a standalone basis compared to 321 which is up by about 12.1%. On a consolidated basis the total income stood at about 486.8 crore compared to 393.8 crore which is up by about 23.6%. On a YY basis PAT stood at about 90.3 crores compared to 83.3 crores up by about 8.4%. This is consol number for quarter four on the PAT for the full year as you all would have seen has come in at about 380 crore compared to about 343 crore last year which is up by about 10.8% on a YoY basis.
I’ll talk a little bit about our subsidiaries because they’ve been some interesting developments. We have our two subsidiaries which is the Payments bank and the NSDL database Management. The bank continues the Payments bank continues to gain traction in digital payments ecosystem. It is currently Amongst the top 33 banks on UPI. UPI acquiring volumes have grown 6x over the past year driven by multiple tie ups as at March 2026. The bank is now ranked seventh as a Pay PSP app amongst the top 15 banks in the ecosystem as at March 2026.
Deposit balances and we are very happy about this as now across Rs 500 crores coming in at about 521 crores with over 4 million customers. We have 43.5 lakh customers to be precise. Additionally, as far as NDML is concerned it recorded strong momentum adding about 33.5 lakh insurance policies over the year. The SEZ pricing got revised in the month of February and this is expected to support and provide momentum to the operational performance and business as we enter the current the new financial year.
I would also like to highlight an important development that happened in India Mill which has just been announced the demerger of our insurance repository business into a new company which is in accordance with Irida’s directions. So the process has been kicked off. We continue to invest strategically in people in technology and the benefits of these investments to some extent is already visible in form of improved customer experience
Pranesh Jain — Analyst
In
Vijay Chandok — Managing Director and Chief Executive Officer
Form of record DP onboarding this year and we do believe that as these initiatives scale up, operating leverage which we have spoken to all of you in the past which is inherent in the business model model of our company will increasingly will kick in and will increasingly strengthen our business model and financial outcomes. So with these few comments I would now hand the call over to Jigar our CFO to take you with little more detailed analysis of the financial outcomes. Jigar, over to you.
Jigar Shah — Chief Financial Officer
Good morning everyone and a very warm welcome. Thank you Vijay. Let me now take you through our very first standalone and consolidated financial highlights for the quarter and financial year 31st March 2016 after our public listing that happened in August 2026. Beginning with I’ll take you through the standalone highlights for the quarter. Revenue from operations for the quarter 4 FY26 stood at 170.6 crore, a growth of 2.4% on year on year basis and sequentially by 1% driven by capital market activity.
Subdued capital market activity in Q4FY26 total income we have registered a growth of 1.8% year on year from 191.9 crore in quarter four FY25 to 195.4 crore in quarter four FY26. Our EBITDA margin for the current quarter stood at 57.2%. Our EBITDA for the quarter for FY26 stands at 111.8 crores. Net profit after tax for quarter four FY26 grew by 5.2% on year on year basis to 79.7 crore. Our BAT margin for the quarter stands at 40.8 crore. I’ll take you now through the full year financials full year profitability Revenue from operations for the full year fi 20 weeks stood at 704.7.
Growth a growth of 13.9% on year on year basis. Notably I want to highlight one point with regards to recurring revenue. This constitute about 50% of our total revenue from operations in the current financial I.e. FY26 total income. We have registered a growth of 14.2% on year on year basis up from 731.4 crore in FY25 to 835.1 crore in FY26. Our EBITDA margin for the current year for a full year standards 60.8%. Our EBITDA for FY26 stands at 508 crore. Net profit after tax for FY26 grew by 12.1% on year on year basis to 360.6 crore and our pat margins for full year basis stands at 43.2% for the current financial year.
As far as the expenses and the capitalization is concerned, I want to make one highlight with regards to the technology front. As Vijay mentioned, we continue to invest strategically in manpower and technology during the current financial year. We have capitalized 106.1 crore during FY26 and the technology spends in the current year has gone up to 91.4 crores. NSDI standalone profit solves now about 90% of the total consolidated profit. So that is because subsidies have started contributing higher in terms of profitability compared to the last year.
This has gone from 95 to 90%. That’s one important highlight with regards to the consolidated I begin with the highlight highlights on the consolidated accounts for the quarter. Revenue from operations for quarter four FY26 stood at 458.3 crore. A growth of 26% on a year on year basis and sequentially by 23.4% total income. We have registered a growth of 23.6% year on year from 393.8 crore in quarter four FY25 to 486.8 crore in quarter four FY26. Our net profit after tax for quarter four, FY26 grew by 8.4% on year on year basis to 90.6%.
And our PAT margin on a quarterly basis as far as consolidated accounts are concerned stands at 18.3%. With regards to full year, our revenue from operations stood at 1530 crore. A growth of 7.7% on year on year basis. Our total income we have registered a growth of 8.1% on year on year basis from 1535.2 crore in FY25 to 1660 crores in FY26. Our net profit after tax grew by 10.8% on year on year basis to 380 crore. And our PAT margins on consolidated basis stand at 22.9% for the current financial year.
That concludes the overall financial highlights from my side and thank you again for joining us. And I’ll now open up the floor for any questions to take this session forward. Thank you.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Amit Chandra from HDFC Securities. Please go ahead.
Amit Chandra
Yes sir. Thanks for the opportunity. So my first question is for the full year, FY26 and also for the quarter we are seeing that the annual custody fees have seen a very phenomenal growth. So this has been partly because of the unlisted for the full year but it has tapered down in the last two quarters. So how do you see this annual custody fees growth for the next year? And especially from the perspective that quarter one we have a reset in terms of the total number of folios that is being reset.
So how do you see that folio number for the next year and also from the pricing perspective obviously because we are spending on technology and we have mentioned earlier that we have no case with the regulator for an increase in the annual issuer fees. So any update on that?
Vijay Chandok
Yeah, so I can come to the second one first and then maybe Jigar, you can talk about the first one. You know, conversations with regulator tends to be, you know, bilateral. So when anything happens we will let you know happened on that front. Custody fee growth that we’ve seen in the outlook to a large extent is rightly as pointed out by you is A reflection of the way in which the unlisted company grew during first half of the year and then there was relative slowdown on that particular front, which is reflected in the custody fee.
I would believe that the future would Again, most of this growth tends to be fairly secular and linked with the account sourcing that happens over a period of time. As we already mentioned to you, the account sourcing is dependent on two factors. One is our ability to give a smooth experience, good customer experience to our customers and also onboard as many new accounts DP accounts as possible, particularly high growth potential DPs and dislocate some DPs from competition if it is possible. So our efforts on that direction has been very, very, I would say focused.
And I’m happy to also tell you that there has been progress because we have dislocated or moved on all fronts. We have digitized our existing experiences, improved experiences and actually in a declining market, our old, most of our old, particularly the bank based pack has shown actually a growth in number of DPs in a declining market. Growth in number of demat accounts in a declining market. Also we’ve been able to add some fintech brokers. Only one of those few fintech brokers we’ve added during the year.
Numbers are visible in quarter four. The others are still getting integrated and will start scaling up early. Days of scale up. One just started in the last bit of quarter four. So the numbers are not really visible there. So as these numbers come in and kick in and you know, we do believe that the custody fee will be a reflection of that. So
Pranesh Jain
Efforts
Vijay Chandok
On that direction which is on our control is very, very focused and very, very intense. What is not in our focus, or rather not in our control is how the market behaves in the uncertainty in the market and customer behavior as a result of that. You know, that is a little bit out of our control. So custody fee to aspects that are under our control is in full, I would say intense focus and attention and aspects which are outside our control is something that we will only, we can only do things like investor training and stuff to try and get, you know, investors confidence built or give them a robust environment and get confidence built which our efforts will be on.
So I would say custody fee, difficult to predict the direction. But past trends show secular growth.
Amit Chandra
Okay. And the incremental share, obviously we have been there at around 15%, 14 and a half to 15%. And you said that you have added some of the DPs also. But are we seeing some Incremental account additions from the like new DPs that we have added or still the addition is coming from the old banking channel. And in terms of the incremental what is the contribution from these new dps? And now whether we are, we are still to see the benefit of that coming in the numbers and because we are not present in 70% of the market.
So any, any like that we have done there that would be helpful.
Vijay Chandok
Yeah. So actually some number scale up is already visible without naming the DP but I can tell you the DP pack last year gave 70,000, this year gave 700,000. So there’s been a 10x scale up from the segment. We are quite hopeful that the scale up from 700,000 accounts will go up more. So clearly fintech brokers which otherwise were historically not coming to us have started coming to us visible. One specific broker which was attached with competition has completely stopped and moved to us. It’s a fintech player again.
A very, very large group, Pune based. So they’ve started, their numbers have scaled up, they have already crossed I would say a very good run rate and their projections are even more promising for the coming year. So that number should start coming. Some of the other large guys are expected to start only during this year. One large DP has just started in the last few days of quarter four. So their numbers will start getting visible only in the coming year. So I think some numbers are already visible but I would say more to come in future.
Amit Chandra
My last question is on the, on the cost part. Obviously you have mentioned earlier also that you will be spending on technology and also the employee cost has been on yoy basis and talking for the full year has been up. So where we are in terms of the, you know, investment journey. So to understand better that how do, how to see these expenses planning out for the next year, is it also from the point of view of the, you know, the technology expenses where we are in the journey of revamping our technology because that is the main core of our offering because employee and technology is the only two like the main pillars of the business.
So where we are in terms of the you know, tech revamp scale and whether for this year also we are going to see a similar rise in the technology cost.
Vijay Chandok
Yeah, so I think great question and rightly put across and our thoughts completely resonate with your, you know, process of thinking. So you know one thing I will highlight as I talk about technology cost and people cost, we are very confident that this is an operating leverage business and if you do not invest in technology and people. I think we will be left behind under investments in the past is something that we needed to correct. We mentioned that and we had started the journey last year when we started the technology spend journey we said that it’s going to be maybe two to three years kind of an affair, maybe two and a half years affair.
One year clearly is behind us. Second year is underway. Last year spends are visible in the P and L and balance sheet. You can see it. We believe this year is also going to be a very similar number as far as tech capex and OPEX is concerned, broadly similar. There could be some marginal increase in our tech opex but capex is going to be very similar. Which means that this is last year and this year together is our peak year. The next year will definitely we expect a decline to happen in terms of CapEx because we would have completed our entire, you know, CapEx spend story.
As far as manpower is concerned. Last year was the peak additions. This year there is going to be a much, much lower edition. In fact, we will start the process of now expecting productivity coming in. We also will start from people because they would be a little more experienced and trained in the system. So definitely this is a period of now asking back from the employees. This is also a period of expecting returns coming because of automation efforts, some of which have started off and but a lot of it automation has happened this year.
So I think the process of tightening the employee band is going to start from this year. In fact, I would say the month of April we’ve already started that exercise. So technology one more year, people cost. I think we have done a substantial part now the process is to expect returns. So there could be one year more of elevated technology and people cost which is the current year. Thereafter we expect plateauing.
Pranesh Jain
Okay. Okay, thank you. Just
Jigar Shah
To add, Amit, just to add the original question that you asked regarding the custody part. So just to add, you know, as Vijay mentioned, you know there has been a change in definition in the third quarter as well. So you know there is going to be moderation with regards to the unlisted space. So if I have to give you an example, you know the opening of unlisted, which used to be typically in the range of 4,000 companies, we started adding 2,000 companies. So there is some amount of change with regards to the kind of unlisted space we were in.
So there is some moderation there. And with regards to the overall folio, the exit folio has gone up by about 15, 16% the exit number is about 14 crore folio we have. So that’s where we are with regards to the custody space. So that will give you, you know, some sort of color in terms of where we are.
Amit Chandra
Okay, so thank you and all the best.
Jigar Shah
Thank you.
Amit Chandra
Thank you, thank
Jigar Shah
You,
Operator
Thank you. We take the next question from the line of Prayesh Jain from Motilalo SWAL Financial Services Ltd. Please go ahead.
Pranesh Jain
Oh yeah, hi. Good morning everyone. So this firstly on the banking services revenues, right, we’ve seen a very sharp sequential increase. What is that attributed to?
Vijay Chandok
Yeah, so two factors that have really helped on our banking side. One being very, very clear, persistent attention on quality, account sourcing. And that’s something that I probably mentioned to you even a year ago, that we will focus on the account sourcing and I think that persistent effort on ensuring that we get quality customers, meaning customers who provide, who are providing float, really help. You would have noticed that our float has increased quite substantially. The CASA float, so that is crossed 500 crores now and obviously CASA float gives we believe sustainable revenue input.
We’ve also introduced certain types of transaction charges for our customers which is now crossed 43 lakh. So that is also kicked in. And finally I would say payments, digital payments, particularly UPI acquisition is a business that we’ve added with expanded partners that has started giving fees. So I think these have been the factors which has really helped. What we sort of do hope as we move forward is to hope that the regulations do not come and change, force us to change any aspects of our business so we continue to trend very carefully, focus on quality, focus on risks and gradually and surely grow the digital bank business.
So that’s how we are looking at our bank business. So you rightly pointed out, I think it’s been
Pranesh Jain
A big
Vijay Chandok
Scale up in profit this year. So it’s gone up. Yeah.
Pranesh Jain
Right. Is there any change in reporting whether it appears very, you know, like from, from, from a operating statistics perspective, whatever you shared in the, in the ppt, I don’t see any major kind of sharp recovery, sharp increase in Q on Q, but we’ve seen a very sharp Q and Q increase, almost like a 40, 50% increase in the revenues. So is there any statement here?
Jigar Shah
No. So I’ll help you. There is no restatement in the quarter three to quarter four. If you’re looking at those numbers largely couple of within the payments bank, you know, they have a transaction banking model. So some of this business did a large throughput during that and as you know, you know the payment bank has a big revenue with when it talks about, about the gross level of accounting that is done because from the gross revenue there is a expense that also gets built in. So that’s why we always, you know, request that you look at the number from the results perspective rather than the revenue perspective.
That’s where some of the uptick has happened in the throughput of some of these businesses.
Pranesh Jain
Got that. And you know like you were mentioning about your incremental account, incremental market share in terms of demand accounts, you know coming in from some of the fintech brokers. But we know we’re still lagging behind the overall market share. So in a way we still kind of a bit of losing market share. Even if I look at on a gross basis it’s like about 16, 17%. That is what you mentioned in the presentation. So you still like of running behind what our overall demand account market share is.
You did mention about some fintech players that you got attached with some where you have some exclusive relationships. So two part question there. One is, you know, what’s getting you into this, into these companies now which you weren’t earlier being able to get into. And second, you know there are some large, large, large companies coming on board, coming into the broking businesses. Right. And so how do you see them kind of selecting the depository participants between the two industry participants and where do we stand in terms of getting some inroad into that?
Because I think that would be a big one if we get exclusive into any of those.
Vijay Chandok
Yeah, yeah. So first and foremost, you know about a year and a half ago when we went into the market there was lot of adverse word of mouth. The word of mouth was not favorable enough towards us. We had to really work with a lot of industry players, talk to them about our, initially we had to talk to them about our plans. We also had to hear their pain points and commit to them that you know, this is the track we are going to take. We worked with back office vendors, we conducted a number of workshops with DPs with one on one in groups, city by city, all back office vendors.
You know, we spent time understanding their pain points, understanding what is, you know, required for us to differentiate. And we came out with a clear list of things that they were expecting. Systemically we have been quarter on quarter delivering those. As I mentioned in my commentary, we have now 40 plus APIs which I believe is ahead of what competition offers which is really helping ease a lot of experience in a positive way. And it is also giving real time Ability for upload of information and getting a reverse feed which improves customer experience and also helps the DPs manage their cost.
Because early pains, etc. Today are getting done very smoothly. So I would say that in turn gives you a positive word of mouth that spreads to the other brokers. So I think it’s a combination of all this which has really started helping us. Most of the new DPs that have come to us are FinTech DPs now. So I think that initial resistance that I had, we had rather NSDL had of bad word of mouth is very certainly and gradually fading out in the market. So I believe it’s a combination of focus on technology, meeting customers, hearing their pain points, addressing their digital expectations on a persistent basis and a committed basis and being there for them, reachable, accessible.
I think Sameer and his team have been fully at it, doing several workshops, several sessions, one after the other, acknowledging if there are problems accepting IT and addressing them. Yeah.
Operator
Does that answer all your questions?
Vijay Chandok
Has he dropped out or.
Operator
Sir, he is showing connected
Unidentified Participant
Some problem from my side. I’ll reconnect.
Operator
All right.
Vijay Chandok
Okay. I wonder if he heard it. Yeah. Okay,
Operator
We take the next question from the line of Ravi Kumar who is an individual investor. Please go ahead.
Ravi Kumar
Good morning everyone. Sir, my question is our intangible asset is double on Y on Y basis and our intangible asset under development is our double on Y1Y basis. So I want to know what are we doing related to intangible asset which showed that much growth in intangible assets.
Vijay Chandok
Yeah,
Jigar Shah
Sorry, we had some, you know, some, some iPhone alerts which is going on. Can you just repeat the question? Because a certain alert that came on everyone’s mobile. Can you just repeat the question, please?
Vijay Chandok
I think this is a national drill which is going on.
Jigar Shah
National drill. Correct, Correct. I just.
Vijay Chandok
Sorry, yeah, please repeat your question.
Ravi Kumar
Yes, sir, our intangible asset double on Y on Y basis and intangible asset under development is also double on Y on by basis. So I want to know what we are doing related to intangible asset which showed that much growth.
Jigar Shah
Yeah, so. So as Vijay mentioned earlier, you know, we are focusing on, you know, our focus area is a technology and we have spent about 106 crore this year. Now the 106 crore has two splits. One is the infrastructure which is like making the capacity more resilient and capacity augmentation part. And the second part which Vijay mentioned earlier in our conversation is the making the journey for DPs more seamless. And ensuring the integration is better. And that’s where we are spending a lot on the licenses, getting the software, the application up and running to ensure that you know when we partner with any of these DPs this is much more seamless.
So that’s where you see the intangible assets coming in in terms of licenses and application cost. The third area where we are spending is with regards to the cyber security. Recently there was a semicircular which also mentioned that we need to have a clean air gap know between the DC and Dr. We need to have one more layer of security. And again there is a lot of spending that happens there with regards to hardware as well as the licenses requirements. So that’s where we are spending and that’s where you see there is an increase in the intangible, you know assets for us.
Ravi Kumar
Okay sir, sir my next question is are we right of 20 crores of bad debt in SI26?
Jigar Shah
Yeah. So this is with regards to the internal policy that we have anything that is about three years we identify some of these, you know receivables and as part of routine exercise we write it off. However, the right to recover continues to be with the company and we make efforts to ensure if there is any recovery will continue to report in our accounts.
Ravi Kumar
So sir, what are the reasons for that bad debt? And we also make provision of 50 crores. So what are the reason for bad debt, bad debts or how much bad debts we see non upcoming future.
Jigar Shah
No so bad debt. If you see this is a policy. So we have an expected loss recognition policy under which the relevant provisions are made. The provision that you’re talking about 50 crore with regards to the general provisioning. So that are different from the bad debts. The bad debts provisioning has happened about 7 crores during the year and as you rightly mentioned of 20 crores have been written off which was already provided in the past.
Ravi Kumar
Okay, my last question is like you mentioned earlier like a broker move from CDSL to NSDL in this year. So is the like when our depository participant move to from CDSL to NHDL is they face any problem restriction like they can move whenever they want.
Jigar Shah
Yeah. So
Vijay Chandok
Broker. Yeah, go ahead please go ahead.
Jigar Shah
Yeah. So it’s a seamless transition. It’s not there is any teething issue. It’s it’s the broker can be with any of the depositories. So it’s a normal action and we have lot of brokers which actually deal with both the depositories as well.
Operator
Thank you sir. Thank
Vijay Chandok
You.
Jigar Shah
One Point I would like to make what with regards to Prash’s question if there is an opportunity press is there on the call last year with regards to you know the kind of robot that were registered, you know all new edge brokers which are registered were onboarded as DPs with NSDL. So one important point and that’s where you see the shift of adding 21 DPs in the last financial year.
Operator
Thank you. We take the next question from the line of Sanket Gora from Avindus Park. Please go ahead.
Unidentified Participant
Yeah, thank you. Thank you for the opportunity Sir. My first question is that our. Our pledging come hardly grew year on year. 52 crores to 55 odd crores. 53 crores to 55 crores in the year. But if I look at margin rate funding book it has grown by almost 6870 percentage for the entire year. So just wanted to understand there is any correlation between these two line items or is it that the margin trade funding book incrementally seems to be grown by the brokers who are associated with CDSL and that’s why we don’t see a commensurate growth in the revenue.
Just a clarification on part sir.
Jigar Shah
Yeah. So the difference is that you know the margin pledge for us is a steady business. For us it’s been growing at about 5 to 7%. And with the recent focus that is happened at the MTF what we have seen is that from the value terms there is a large, you know MTF book that is getting built. But in terms of transaction count this has remained a steady state. And our revenue model is on transaction count rather than you know the ad valorem. And that’s where you see, you know the uptick is you know in a steady state 5 to 7% growth.
While in terms of value this might have grown.
Unidentified Participant
Understood. But at the industry level you don’t see that there has been significant increase in the transaction level. But it was more due to ticket size going up in margin trade funding book.
Jigar Shah
Correct. Especially with us, the the traders or the brokers who are associated with us the DPs.
Unidentified Participant
Understood, understood. And second things is that on. On corporate action and IPO income last quarter 4QFY25 was also weak when, when it came to IPO. But we still registered 34 crores of revenue last year and. And this year it is 16 crores. So. So just wanted to understand the the decline is it because we had a kind of one off in 4Q or if you can give a color Whether it was more to do with CA or IPO in the current quarter.
Jigar Shah
No. So last year we had you know a couple of its IPOs are you know in a way very unique to number of counts. Again while you know the IPO activities have remained subdued. But last year we had couple of IPOs which had a large bonus issues and any right issues in the first in the last quarter of the year. And that’s why you see that increase in the corporate action. And this year, you know while the number of mobilization in terms of IPO has remained about 18,000 odd crores. But the count has gone down or you know has remained static.
So that’s where we see this is specifically a very sporadic to one or two instances where we would have a larger, you know folios with us and the bonuses and the right would have indicated last year. And that’s where you see a little spike last year compared to this year.
Unidentified Participant
Okay, so is it safe to say that in 4k for 25 the go demerger played a role. That’s why it was a bumped up number. And this way with this this year we don’t have that kind of a figure.
Jigar Shah
So Sangeet, we are not getting into specific entry table IPOs but you get the directional thought right. We are not getting.
Unidentified Participant
Okay, yeah, I got it. Got it. Sorry. And the another question was was on the other expenses. See the other expenses, even if I look at from full year point of view, from the standalone point of view, it has come down from 117 crores to 100 odd crores. Any cost cutting exercise or what is this seemingly related to and whether it is sustainable going ahead. Also just want to understand that color
Jigar Shah
So broadly. See Sanket, our cost has remained the same on the other expenses line. However, last year if you see our RSP document as well as the disclosures, we had a settlement charges which we had paid to regulator and that has been disclosed as part of our disclosures as well. And that’s where you see last year. If you, you know, you see the cost. That’s where was a part of that other expenses. Otherwise there is no cost reduction. It remains stable. And year on year the cost has continued in the same range.
Unidentified Participant
Understood. And lastly on on your account. So we don’t as you rightly said sir, we don’t on your account. But out of 44.5 million how many are your account and how much they contribute or potential revenue loss? We had they did the transaction but they we did not earn it. But, but, but, but honestly It’s a pipeline for two years down the line. So. So if you can give a color that how much if they would have paid for rupees per debit what was the potential revenue we could have earned and that revenue will get added to two years down the line to our pnl.
Vijay Chandok
Actually we don’t measure it like that or track it like that. We just found that you know when we took this decision the UA customers were a very, very small part and were an insignificant part of the custody or not custody insignificant part of the settlement contribution. So to start with there was not no material base that you know was at risk. So but specifically we haven’t segregated it from that manner as to what is loss of revenue because of the settlement. But I just want to add one nuance that to say that we earn nothing from your account may not be accurate because custody we do earn.
Unidentified Participant
Yeah, I understand sir, that I was more referring from settlement fees point of view that 4 rupees per debit what we charge. Maybe, maybe it’s an initiative to add more people. Naturally it’s adding to the custody fees but, but in future they will naturally add to the settlement fees as a three year schooling period gets over. So, so I was just trying to.
Vijay Chandok
Yeah, yeah for the old one. Yeah, yeah, go ahead, go ahead.
Unidentified Participant
No, no, I was just wondering potentially how much it could add maybe two years down the line to our revenue if they continue to do as many debits what they are doing today. But, but I understand that you might have not quantified that. Maybe, maybe if, if you can probably, maybe in offering can quantify that number would be useful to understand the potential revenue which we can earn three years down the line or two years down the line when we see a sunset clause on these caps.
Jigar Shah
Ankit, I’ll just give you an this. Our right now focus is to encourage and improve and penetrate the market participants in the over larger ecosystem. We are right now as Vijay mentioned, not looking this from the lens of revenue plus or revenue minus. So you know these are important services and market infrastructure we’ve taken initiative to provide, you know, to the as part of the nation building exercise. As the time progresses we’ll be in a better shape and we’ll continue to monitor internally and this encourages the youth to you know, participate more in the ecosystem.
So that’s the thought right now and the outcomes will wait for the outcomes and there will be time where we will be able to discuss these outcomes as well.
Unidentified Participant
Got it. And lastly if you can quantify NDML Revenue or India in NDML for insurance repository revenue in the current year.
Jigar Shah
So we have disclosed as part of a footnote the overall top line from the insurance business. About five and a half, six crores.
Unidentified Participant
You said five and a half crores, right? Yeah. Okay. That’s it from my side. Sorry, 6 crore
Vijay Chandok
Top line. Yes.
Unidentified Participant
Understood. Thanks.
Vijay Chandok
Thank you.
Operator
Thank you. Ladies and gentlemen. If you wish to ask a question, please press star and 1. We take the next question from the line of prayershain from Mothigalo for Financial Services Ltd. Please go ahead.
Pranesh Jain
Yeah,
Vijay Chandok
I don’t know if you heard it or no,
Pranesh Jain
The last part. I was with some emergency message that has come from the government of India with respect to the launch. Yeah, yeah, yeah. That’s why I couldn’t hear that. But yeah, if you could repeat that just the last bit. But happy to take it offline. Also if time is
Vijay Chandok
Maybe rash on this question since I gave a very elaborate answer, we can take it offline for the benefit of the others and if required you could come in CBO and have a detailed discussion with him on you know, efforts he’s doing to win new customers which Jigger added. Jigger, maybe you want to just repeat that last data point on the new bridge.
Jigar Shah
Yeah. So Praj, what I was trying to add with the message that was given by Vijay is that you know, all new age brokers which are registered last year into this business were all onboarded as DPS with ns. So that’s where this will give you a color in terms of the shift at which our approach has been getting built in. And that shift is also backed by the investments which we are doing in technology.
Vijay Chandok
So lot of effort is on to change image. The short point is that.
Pranesh Jain
I had was on, you know, if I have to think about NHDL say from a standard, do you think that ndml, you know, can come to NDML or Payments bank the contribution that they have today in the overall profitability revenues. Do you see that? You know these could be say double from this from the current levels today or how should we think about these subsidiaries and you know, the growth going ahead. One point out there which is kind of wanted to also check was on the KYC bit and the new pricing. How does this kind of impact us?
Vijay Chandok
Yeah, so you know, honestly, you know, I don’t want to double guess, you know, to this question because honestly we’ve seen so much of regulatory interventions that have kept coming both on the banking side as well as on the NDML side. You know, Banking has been fraught, payment banking industry has been fraught with several regulations that have kept and kept on coming which has sort of required us to do course correction, course changes. So we have to view our future in the context of such regulatory, you know, changes that can happen even on NDML side.
We’ve seen last year there has been an intervention from the regulator which is requiring us to reduce the charges. So our effort on all aspects of the business is to actually focus on quality and diversify as much as possible to minimize this impact. So unlike competition on the NDML side we are far more diversified in terms of revenue because we have at least four different lines. We have an insurance repository, we have a, you know, sez, we have a kra, some other revenue streams as well, national skills and so on.
So you know our attempt and our attempt is really to do as much diversification as possible to minimize changes and focus on quality business. We do believe that there is a scope in the market, penetration can be improved. I think we are working towards that.
Unidentified Participant
Thank
Vijay Chandok
You so much contribution but I think our focus will be to keep growing all the businesses. There is lot of opportunity. We will just continue to keep growing in a stated manner, risk free manner and you know the opportunity will keep coming to us. Do the right things is what we want to do.
Operator
Right.
Pranesh Jain
Wish you all the best. Thanks.
Operator
Thank you
Vijay Chandok
Ladies
Operator
And gentlemen.
Vijay Chandok
I just want to give a wrap up. I think last year the contribution of NSDL to subsidiaries was 95,5. Today it is 90 10. So you know, that’s the trend we have seen. So let’s just see what happens in future.
Operator
Thank you ladies and gentlemen. As there are no further questions from the participants I now hand the conference over to the management for their closing.
Vijay Chandok
Yeah, first of all once again thank you very much for taking all the effort and coming to us on a extended weekend in a holiday type, you know, sort of situation. Much appreciated. I’m sure there are going to be a lot more questions that you want to ask. We are always available to reach out anytime accessible to you. Please reach out for any clarification questions that you may have and we’ll be very, very happy to attend to them. Thank you all of you once again for taking the effort and have a wonderful rest of the weekend.
Operator
Thank you, thank
Jigar Shah
You very much for joining. Thank you
Operator
On behalf of ICICI securities limited that concludes this conference call. Thank you for joining us and you may now disconnect your lines.