Can IPO buzz boost CDSL and NSDL Q2 earnings? What the stocks investors need to know
AI Summary
The surge in primary-market activity, particularly in IPOs, is poised to significantly enhance the earnings of CDSL and NSDL in Q2 FY27, despite a decline in secondary-market trading volumes. Retail investors should note that while CDSL is likely to benefit more due to its strong retail investor base, the overall impact on earnings may be tempered by the nature of the IPOs, as larger institutional-led offerings generate less revenue per amount raised. This dynamic suggests that while the IPO boom is promising, investors should remain cautious about the sustainability of earnings growth in the long term.
India’s strong primary-market activity is expected to provide a much-needed boost to CDSL and NSDL’s Q2 FY27 earnings, even as subdued secondary-market activity weighs on transaction revenues. Brokerages expect IPO-linked income, annual issuer services, new demat accounts and corporate actions to support the depositories during the September quarter.
Nuvama Institutional Equities expects a muted recovery in the secondary market, with Q2 cash and delivery average daily traded volumes (ADTV) estimated to decline 14.1% and 1.7%, respectively, sequentially. However, this is likely to be offset by a sharp revival in primary-market activity, with ₹92,600 crore raised in Q2 FY27, up 9.8 times sequentially.
Original Article
Published on Livemint
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This is a market news update from Livemint, published on 06 October 2026.
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