📈 Price History

Ratio Health

— Excellent

— Good

— Average

— Poor

By Category

Shareholding

About

Central Depository Services Limited is a Market Infrastructure Institution (MII), part of the capital market structure, providing services to all market participants - exchanges, clearing corporations, depository participants (DPs), issuers and investors. It is a facilitator for holding of securities in the dematerialised form and an enabler for securities transactions.

✓ Strengths 5

Company has reduced debt.
Company is almost debt free.
Company has a good return on equity (ROE) track record: 3 Years ROE 29.2%
Company has been maintaining a healthy dividend payout of 54.3%
Company's median sales growth is 23.7% of last 10 years

! Concerns

No concerns data yet.

Key Ratios Snapshot

📊 Sector Averages

📈 Growth Pattern

⚡ Latest Quarter —

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📊 Quick Scorecard

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Mixed: revenue grew 16.5% YoY but EBITDA and net profit declined sharply, margins compressed ~1,450 bps due to surging IT and admin costs. quarter Investor Presentation One-Pager Mar 2026

Revenue

₹212 Cr

+16.5% YoY (vs ₹182 Cr in Q4FY25)

EBITDA Margin

48.1%

Down from 62.6% YoY; ~1,450 bps compression

PAT

₹69 Cr

-14.8% YoY; ex-dividend PAT fell 23.3% to ₹69 Cr

Demat Accounts

1,801 lakh

+17.8% YoY; net adds of 74 lakh in Q4

What Went Right

Operating income grew 16.5% YoY to ₹212 Cr.
Demat accounts crossed 1,801 lakh, up 17.8% YoY.
Number of issuers jumped 34% to 48,103.
ISINs grew 28.8% to 1,26,779.
Net new accounts added in Q4: 74 lakh, demonstrating steady user acquisition.

What to Watch

EBITDA declined 10.5% YoY to ₹102 Cr; margin collapsed ~1,450 bps to 48.1%.
Net profit fell 14.8% YoY; excluding one-time dividend, net profit dropped 23.3%.
IT costs surged 42% YoY to ₹37 Cr, outpacing revenue growth significantly.
Other administrative expenses rose 19.5% to ₹49 Cr, adding to margin pressure.
Sequential revenue dropped 16.5% from Q3FY26 (₹254 Cr to ₹212 Cr), indicating lumpiness.

Investor Lens

CDSL's core metrics remain strong with 17.8% account growth and 34% issuer growth, reflecting India's expanding capital market. However, Q4 profitability disappointed: EBITDA margin collapsed to 48.1% from 62.6% a year ago, driven by a 42% jump in IT costs and 19.5% rise in admin expenses. Net profit excluding dividend fell 23.3% YoY, suggesting operating leverage remains elusive. While new services (Investor App, e-voting, DLT) add value, cost containment is now critical. The absence of management guidance leaves uncertainty whether the expense surge is transient or structural. Next quarter, focus on IT spend trajectory, transaction fee trends, and any regulatory changes impacting revenue. Long-term thesis of a digital securities infrastructure leader stays intact, but near-term margin pressure warrants caution.

From investor presentation · AI-generated analysis · Not investment advice

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📉 WEAK Net Profit falls 20% to ₹80 Cr

Revenue

Revenue rose 17.4% YoY to ₹263 Cr, but fell 13.5% QoQ. This indicates a mixed revenue trend. YoY growth is positive, but QoQ decline may be a concern.

Profitability

Net Profit declined 20% YoY to ₹80 Cr, with EPS at ₹3.84, down from ₹4.80. PAT margin has decreased, affecting profitability.

Margins

OPM % stood at 44%, down from 49% YoY and 52% QoQ, indicating a decline in operating margins. This may be a concern for future profitability.

Balance Sheet

The company has negligible borrowings of ₹2 Cr and significant reserves of ₹1,751 Cr, indicating a healthy balance sheet.

Key Risks

Decline in Net Profit and OPM % are key risks. Dependence on a few revenue streams may also be a concern.

Outlook

The company's future performance will depend on its ability to improve profitability and maintain revenue growth. A turnaround in OPM % will be crucial for future growth.

Generated by AI · Mar 2026 results · Not investment advice

📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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