CDSL
Small CapCentral Depository Services (India) Limited
Financial Services
CDSL is India's largest depository by demat accounts, providing securities infrastructure services. It facilitates holding and transfer of securities in electronic form, e-voting, and offers various investor services through its subsidiaries in KYC, insurance, and commodity repositories.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT -20% YoY · margin compression · Rev +17% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹263 Cr | +17.4% | -13.5% |
| EBITDA | ₹116 Cr | +6.4% | -27.5% |
| Operating margin | 44.0% | -500 bps | -800 bps |
| PAT | ₹80 Cr | -20.0% | -39.9% |
| PAT margin | 30.4% | -1422 bps | -1333 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
CDSL's Q4FY26 standalone operating income declined QoQ to ₹212 crore, with EBITDA falling to ₹102 crore and Net Profit to ₹69 crore, reflecting a sequential slowdown after a strong Q2FY26.
The sequential decline in operating income, EBITDA, and net profit in Q4FY26, coupled with a drop in Demat Custody value, suggests a slowdown in core depository activity. While BO account additions remain robust, the financial performance indicates potential pressure on transaction-based revenues.
Growing Demat Account Base
Crossed 100 million demat accounts in 2024; total BO accounts reached 1,801 lakh in Q4FY26.
Digital Infrastructure & Services
Introduction of e-DIS, DDPI, Direct Payout, e-voting, eKYC, and the new Investor App with unified features.
Subsidiary Diversification
CDSL Ventures (KYC, RTA), Centrico Insurance Repository, and Countrywide Commodity Repository expand service offerings.
Digitalization of Securities Market
Continued adoption of e-DIS, e-voting, eKYC, and the new Investor App, supporting digital transactions.
Financialization of Savings
Consistent growth in total demat accounts and net accounts opened quarterly, indicating increasing retail participation.
Market Volatility Impact on Transaction Volumes
Standalone transaction charges income declined QoQ from ₹60 crore in Q3FY26 to ₹25 crore in Q4FY26.
Decline in IPO/Corporate Action Income
Standalone IPO/CA Income decreased QoQ from ₹59 crore in Q3FY26 to ₹44 crore in Q4FY26.
Dependence on Capital Market Activity
Fluctuations in transaction charges and IPO/CA income directly impact overall revenue and profitability, as seen in Q4FY26.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
QoQ comparison is crucial to assess sequential momentum in transaction volumes, new account additions, and profitability. YoY comparison is also relevant to understand annual growth trends and seasonal impacts in the financial services sector.
Demat Custody (AUM)
UNDER_STRESS₹77 lakh crores in Q4FY26, down from ₹85 lakh crores in Q3FY26 but up from ₹71 lakh crores in Q4FY25.
Number of BO Accounts (Total)
INTACT1,801 lakh accounts as of Q4FY26, up from 1,727 lakh in Q3FY26 and 1,529 lakh in Q4FY25.
Net Accounts Opened in Quarter
INTACT74 lakh accounts in Q4FY26, slightly down from 76 lakh in Q3FY26 but up from 64 lakh in Q4FY25.
Standalone Operating Income
UNDER_STRESS₹212 crore in Q4FY26, down from ₹254 crore in Q3FY26 but up from ₹182 crore in Q4FY25.
Focus on Investor Empowerment
The company's theme is "Empowering #AtmanirbharNiveshak", with launches like the Investor App and IPF investor education website.
Enhancing Digital Offerings
Continuous introduction of innovative services like Direct Pay-out, Proxy Advisor Recommendations, and Digilocker integration.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Demat Account Additions | 74 lakh in Q4FY26 | Sustained quarterly additions above 70 lakh to maintain growth momentum. |
| Demat Custody Value (AUM) | ₹77 lakh crores in Q4FY26 | Reversal of QoQ decline and consistent growth, indicating broader market value. |
| Transaction Charges Income | ₹25 crore (Standalone) in Q4FY26 | Recovery in transaction-based revenues, indicating improved market activity. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
41NeutralSMA20 -10.0% / mo · near 52W low
Technical chart
CDSLweekly · 1Y-27.0%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 43.
- SMA20 falling (~11.1% over last month) — short-term momentum negative.
- RSI(14) at 43 — sideways, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 33% off 52W high · 9% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Quality contributes 14/20 to the score.
- Cash flow contributes 7/10 to the score.
Main drags
- Fair-value margin of safety is negative at -68.5%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Balance sheet is weaker at 7/15; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 73rd percentile of the scored universe and 87th percentile within Financial Services. Main check: results consistency is weak at 43/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Promoter holding is only 15%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Financial Services: 87th pctile, median 62 · Small: 77th pctile, median 65
61 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.1%.
- ▸12 years of positive FCF.
- ▸Debt/equity is 0.00.
Trust risks
- ▸Promoter holding is only 15%.
- ▸ROCE trend is -6%.
- ▸1/4 latest quarters had positive YoY PAT growth.
- ▸OPM spread across recent quarters is 18%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 54.70
- P/B
- 12.72
- EV/EBITDA
- 38.49
- Market Cap
- 24942.00Cr
Profitability
- ROE
- 24.50%
- ROCE
- 32.00%
- ROA
- 18.81%
- Dividend Y
- 1.05%
Growth (CAGR)
- Revenue 5Y
- 27.00%
- EPS 5Y
- 18.00%
- Revenue 3Y
- 27.00%
- EPS 3Y
- 18.00%
Balance Sheet
- Debt/Equity
- 0.00
- Interest Coverage
- —
- Altman Z
- 8.57
- Book Value
- 93.80
Cash Flow
- FCF Yield
- 1.13%
- FCF Positive Y
- 12/5
- OCF
- 467.00 Cr
- EPS TTM
- 21.82
Shareholding
- Promoter Hold
- 15.00%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 11%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.