Central Depository Services (India) Ltd Q2 FY26 Concall Decoded – Core Profits Sans Dividend Magic: Still Holding the Fort


1. Opening Hook

Remember when your WhatsApp stopped working for an hour and you nearly declared a national emergency? CDSL had a similar moment this quarter — revenue hiccups, tech spends ballooning, but somehow, the nation’s demat backbone stayed chill. Despite no “dividend sugar rush,” profits came from plain, honest-to-God operations.
As the Bhagavad Gita wisely says — “Action is thy duty, reward not thy concern.”
CDSL took that literally — kept building, not boasting.
Hang on, because the real story of market share, SEBI whispers, and tech spend tango comes later. 📈


2. At a Glance

  • Revenue ₹341 Cr (↓5%) – CFO swears it’s real ops, not dividend déjà vu.
  • Net Profit ₹140 Cr (↓13%) – No subsidy from subsidiaries this time.
  • Standalone Income ₹290 Cr (↓10%) – Less cash, more class.
  • Demat Accounts 16.5 Cr – 80% market share, still the Big Boss.
  • CVL Income ₹92.8 Cr (↓36%) – KYC karma catching up.
  • Stock steady – Traders waiting for SEBI to hike issuer charges (the holy grail).

3. Management’s Key Commentary

“We crossed 20 crore demat accounts as an industry.”
(Translation: 20 crore Indians now panic-sell together. 😏)

“CDSL added 65 lakh new accounts this quarter, retaining 80% market share.”
(Translation: We’re still king, NSDL who?)

“No dividend this time — pure operational profit.”
(Translation: Sorry, no free toppings, just the base pizza.)

“Investor education remains a key focus under SEBI’s ‘vs SCAM’ campaign.”
(Translation: We’re teaching people to spot scams — starting with meme stocks.)

“Tech and HR investments are continuous; innovation is expensive.”


(Translation: Engineers want raises, and servers need upgrades.)

“Insurance repository tie-ups include LIC — go-live in November.”
(Translation: Finally, some premium assurance in our insurance.)

“No comments on SEBI fee hike discussions.”
(Translation: We’re hoping, but can’t say it out loud — regulator might be listening.)


4. Numbers Decoded

MetricQ2 FY26Q2 FY25ChangeSarcastic Take
Total Income (Consol)₹341 Cr₹359 Cr↓5%No dividend fuel this time.
Net Profit (Consol)₹140 Cr₹162 Cr↓13%Still sturdy for a lean quarter.
Standalone Income₹290 Cr₹324 Cr↓10%Tight wallets, fat systems.
Standalone Net Profit₹128 Cr₹171 Cr↓25%Reality check after last year’s dividend high.
Demat Accounts16.5 Cr15.9 Cr↑4%Every Indian now owns a stock (or so it feels).
Market Share80%83%↓300 bpsLosing % but not power.
Pledge Income₹5.09 Cr₹5.05 CrFlatInvestors pledged faith, literally.
KYC Income (CVL)₹92.8 Cr₹144.4 Cr↓36%KYC — Know Your Collapse.

(Short story: lower topline, but cleaner core. No sugar, just sweat.)


5. Analyst Questions

Q: Why is issuer charge revenue flat despite new listings?
A: It’s billed annually. Wait for FY27. (Translation: patience is profitable.)

Q: Will SEBI allow charge

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