Central Depository Services (India) Limited Earnings Summary — FY2026
Central Depository Services (India) Ltd (CDSL) maintained its leadership in the depository space with revenue reaching ₹1,145 Cr, although net profit saw a cyclical dip compared to the previous year.
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 11.4% sequentially in Q1 FY2027.
- Revenue of ₹293 Cr is 13.1% higher year-on-year.
- Revenue has compounded at 9.1% annualised over the last 10 quarters.
- Net profit of ₹118 Cr is 14.8% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -4.1% annualised across the period.
- Operating margin stands at 47.1% in Q1 FY2027.
- Operating margin compressed by 317 bps year-on-year.
- Over the last two years operating margin has contracted by 1290 bps.
- PBT margin is 56.9%.
- Expenses grew 20.3% against revenue growth of 13.1%.
- Operating profit of ₹138 Cr is 6.0% higher year-on-year.
- Operating leverage has been under pressure recently.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 63/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 293 | 263 | 304 | 319 | 259 | 224 | 278 | 322 | 257 | 241 |
| Expenses | Improving | 155 | 147 | 145 | 143 | 129 | 115 | 117 | 122 | 103 | 93 |
| Operating Profit | Stable | 138 | 116 | 160 | 176 | 130 | 109 | 161 | 200 | 154 | 148 |
| Operating Margin | Stable | 47.1% | 44.0% | 52.5% | 55.3% | 50.3% | 48.7% | 57.8% | 62.0% | 60.0% | 61.4% |
| Other Income | Volatile | 48 | 6 | 29 | 22 | 36 | 32 | 21 | 37 | 30 | 29 |
| Interest | Volatile | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | Improving | 19 | 18 | 17 | 16 | 15 | 14 | 13 | 12 | 10 | 8 |
| Profit Before Tax | Improving | 167 | 103 | 172 | 183 | 151 | 127 | 168 | 225 | 175 | 168 |
| Tax | Volatile | 49 | 23 | 39 | 43 | 49 | 27 | 39 | 63 | 40 | 39 |
| Net Profit | Stable | 118 | 80 | 133 | 140 | 102 | 100 | 130 | 162 | 134 | 129 |
| Net Margin | Stable | 40.1% | 30.5% | 43.8% | 44.0% | 39.5% | 44.7% | 46.8% | 50.3% | 52.1% | 53.7% |
Key Takeaways
- CDSL has transitioned into the market leader by demat account volume, benefiting from Indian household financialization.
- Operating margins show a softening trend, declining from historical highs to approximately 45% due to increased technology and compliance spending.
- The balance sheet remains exceptionally strong with near-zero debt and substantial cash reserves.
- Capital efficiency is high with ROCE at 32% and ROE at 25%, despite the slight profitability dip in the latest fiscal cycle.
- The business model remains asset-light and utility-like, with recurring revenue from annual maintenance and transaction fees.
- Cash flow from operations (CFO) consistently exceeds Net Profit, indicating high earnings quality.
Management Guidance
Management is focused on digital transformation and cybersecurity to support massive scale-ups. Recent executive appointments indicate a focus on operational continuity and long-term succession planning in a regulated environment.
Sentiment Shift
Deteriorating
While structural growth remains, the recent decline in profit growth and margin compression from 50-60% levels to sub-50% indicates rising operational costs.
Outlook
CDSL represents a leveraged bet on Indian capital market growth, though short-term performance is subject to market volatility and increasing working capital days.
From the Annual Report (Key Quotes)
“CDSL has evolved from a secondary player into the market leader by demat account volume.”
“2026 shows a slight margin softening due to increased tech and compliance expenses.”
“The company enjoys an asset-light, high-margin utility business model with recurring revenue streams.”
Official Quarterly Documents
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This summary is AI-generated from Central Depository Services (India) Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
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