1. At a Glance
CDSL just dropped its Q1 FY26 results, and while the stock tanked 3.85%, the company is still sitting pretty with a market cap of ₹33,747 crore. Profit fell 23.7% YoY, but hey, it’s still minting money with margins fatter than your favorite street samosa.
2. Introduction with Hook
Imagine a bank where you don’t deposit cash but your stocks. That’s CDSL. They’re the invisible landlord of your demat account. With an ROE of 32.7% and ROCE of 42%, this landlord is richer than your housing society’s treasurer. But Q1 profits? They slipped harder than your WiFi during an online exam.
3. Business Model (WTF Do They Even Do?)
CDSL basically:
- Stores your shares electronically so you don’t keep them under your mattress.
- Facilitates settlements, e-voting, and all those boring but essential back-end things.
- Offers services like M-Voting, Myeasi App, and even e-Locker because why not make securities storage sound like Dropbox?
Think of them as the Uber for stock trades—minus the surge pricing, but with monopoly-level chill.
4. Financials Overview
Q1 FY26 looked like this:
- Revenue: ₹259 crore (flat as a dosa YoY)
- Net Profit: ₹102 crore (-23.7% YoY)
- OPM: 50% (still dreamy)
- EPS: ₹4.9 (down from ₹6.2 last year)
Commentary: Margins remain strong, but profit dipped. Apparently, even depositories aren’t immune to market mood swings.
5. Valuation
Using P/E: At 68x, it’s priced like an iPhone—expensive but people still buy.
Using EV/EBITDA: Around 50x, still nosebleed territory.
Fair Value Range: ₹1,250 – ₹1,450.
If you think paying 68x earnings is cool, you probably also buy popcorn at PVR.
6. What’s Cooking – News, Triggers, Drama
- Bonus shares issued (1:1) in 2024, doubling equity.
- New MD & CEO Nehal Vora appointed.
- Expanded into bullion repository services, because why not hoard gold data too?
- Profit slip in Q1 FY26 = investors crying louder than IPL fans in a super over.
7. Balance Sheet
| Particulars (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 2,162 |
| Liabilities | 611 |
| Net Worth | 1,760 |
| Borrowings | 3 |
Key Take:
Debt? Almost zero. Titanic won’t sink here.
8. Cash Flow – Sab Number Game Hai
| Year | Ops | Invest | Finance |
|---|---|---|---|
| FY23 | 249 | -126 | -158 |
| FY24 | 386 | -249 | -169 |
| FY25 | 543 | -298 | -231 |
Cash from ops is solid. Investing cash outflows? CDSL hoards assets like a shopaholic on sale.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 33% |
| ROCE | 42% |
| P/E | 68x |
| PAT Margin | 46% |
| D/E | 0.0 |
ROCE hotter than a finance bro’s crypto portfolio in a bull run.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | 555 | 319 | 276 |
| FY24 | 812 | 488 | 420 |
| FY25 | 1,082 | 625 | 526 |
Analysis: Growth slowed, but margins still king.
11. Peer Comparison
| Company | Rev (₹Cr) | PAT (₹Cr) | P/E |
|---|---|---|---|
| CDSL | 1,083 | 526 | 68x |
| CAMS | 1,334 | 422 | 47x |
| KFin | 1,127 | 342 | 59x |
| Beacon | 26 | 5 | 19x |
CDSL looks like the least drunk guest at a fintech party where everyone’s already tipsy.
12. Miscellaneous – Shareholding, Promoters
Promoter holding? Just 15%. FIIs own ~13%, DIIs ~14%, and the rest is retail.
Retail’s love story with CDSL is stronger than SRK-DDLJ romance, despite the premium tag.
13. EduInvesting Verdict™
CDSL remains a cash-spewing monopoly with margins that make other companies jealous. But at 68x earnings, the stock’s priced like it cures boredom. Solid business, but don’t expect it to hand you business class champagne anytime soon.
Written by EduInvesting Team | 26 July 2025
Tags: CDSL, Depository, Q1FY26 Results, EduInvesting Premium, Stock Analysis, CAMS vs CDSL, Financial Services
