Central Depository Services (India)'s Q2 FY 2025-26 Quarterly Results

Result Summary

• Central Depository Services (India) Ltd reported a 15.7% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 4.8%.
• Its expenses for the quarter were up by 9.6% QoQ and 17.1% YoY.
• The net profit increased 36.6% QoQ and decreased 13.6% YoY.
• The earnings per share (EPS) of Central Depository Services (India) Ltd stood at 6.71 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Central Depository Services (India) Ltd (CDSL) is a leading player in the Indian financial market infrastructure. It provides depository services which facilitate holding and transacting in securities in electronic form. As a key player in the depository services sector, CDSL's core function is to maintain and safeguard securities and enable their efficient transfer and settlement. The company serves a wide range of clients including investors, stock exchanges, clearing corporations, and issuers. CDSL plays a significant role in enhancing the transparency and efficiency of India's securities market.

Revenue

In Q2FY26, CDSL reported a total income of ₹341.37 crores, marking a 15.7% increase from Q1FY26 where the total income was ₹295.16 crores. However, when compared to Q2FY25, there was a 4.8% decrease from ₹358.51 crores. The year-over-year decline in total income suggests a contraction compared to the same quarter in the previous year. Despite the YoY decrease, the quarter-over-quarter (QoQ) growth indicates an uptick in revenue within the fiscal year.

Profitability

CDSL's profitability metrics for Q2FY26 reveal a profit before tax (PBT) of ₹183.96 crores, which represents a 21.4% increase from the previous quarter's ₹151.55 crores. However, this figure shows a 17.9% decrease from the PBT of ₹224.10 crores recorded in Q2FY25. The profit after tax (PAT) for Q2FY26 stood at ₹139.94 crores, up 36.6% from Q1FY26's ₹102.41 crores, but down 13.6% from ₹161.96 crores in Q2FY25. Earnings per share (EPS) also followed this trend, increasing QoQ by 36.9% to ₹6.71 in Q2FY26, yet decreasing by 13.4% YoY from ₹7.75 in Q2FY25.

Operating Metrics

The total expenses for CDSL in Q2FY26 amounted to ₹157.41 crores, reflecting a 9.6% increase from Q1FY26's expenses of ₹143.61 crores. Compared to Q2FY25, total expenses rose by 17.1% from ₹134.41 crores. The tax expense in Q2FY26 was ₹42.72 crores, which is a decrease of 12.4% from Q1FY26's ₹48.78 crores and a significant reduction of 31.9% from ₹62.73 crores in Q2FY25. The decrease in tax expenses across periods indicates a relative decline in the tax burden for the company. The financial data provided highlights the dynamics in CDSL's operational costs and tax liabilities over the periods under review.