Central Depository Services (India) Ltd reports a robust start to FY2027 with a 15.4% rise in income, stable market share near 80%, and benefits from diversified services despite regulatory fee cuts and mixed profit metrics.
Central Depository Services (India) Ltd reported a solid start to FY2027, with consolidated total income rising 15.4% from a year earlier to ₹340.50 crore and consolidated net profit climbing 15.7% to ₹118 crore, according to the company’s earnings call summary. The depository added about 58 lakh new demat accounts in the quarter, taking its total to 18.59 crore and keeping market share near 80%, a sign that its core franchise remains firmly in place even as competition intensifies.
The numbers also showed that CDSL is benefiting from a broader mix of services. Its subsidiary CVL posted a 22% rise in revenue from operations, helped by growth in other businesses and digital services. At the same time, the company said industry recognition continued to build, including awards for fintech innovation and settlement efficiency, while shareholders approved the appointment of two executive directors to strengthen operations, technology and risk management.
Not every metric moved in the same direction. Standalone net profit fell to ₹144 crore from ₹152 crore a year earlier, largely because dividend income from the subsidiary was lower. CVL’s profit after tax also declined 5% to ₹12.11 crore as expenses increased sharply. Management said the dip in annual issuer charges growth, which rose 12.3% despite folio growth of 17%, was linked to the unlisted company segment.
A key issue on the call was the impact of the Securities and Exchange Board of India’s pricing reset for KYC services. Sunil Alvares, managing director and chief executive of CVL, said the regulator cut the fetch charge from ₹35 to ₹28 and the new charge from ₹20 to ₹5, but the actual hit was only about 9% because higher volumes and a new search API fee helped cushion the blow. Girish Amesara, chief financial officer, said other income totalled ₹75 crore, including ₹43.8 crore from mark-to-market gains and accrued interest. Nehal Vora, managing director and chief executive of CDSL, said the company remains focused on long-term infrastructure growth rather than short-term swings in incremental market share, and added that employee costs rose because of the year-end appraisal cycle rather than a permanent step-up in spending.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
