This article first appeared on GuruFocus .
Release Date: February 02, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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CDSL maintained an 80% market share with over 17.27 crore DAt accounts.
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The company received significant global recognitions, including the Central Securities Depository of the Year 2025 award.
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CDSL's CSR efforts were acknowledged with the Project of the Year Healthcare Award at the India CSR Awards 2025.
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The company achieved a milestone of 100 million YouTube channel views, indicating strong engagement with investors.
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CDSL's total income for the nine months increased to 970 crore from 944 crore in the previous year.
Negative Points
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The combined average daily turnover at BSN NSC decreased by 8.3% compared to the previous year.
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Consolidated net profit for the nine months decreased to 375 crore from 426 crore in the previous year.
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Technology costs have increased significantly, growing 4x since FY23, raising concerns about cost management.
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There is uncertainty regarding the impact of CKYC 2.0 on the KRA business, which could affect pricing and market position.
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The company faces challenges in predicting future technology costs due to evolving market conditions and regulatory requirements.
Q & A Highlights
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Q: Your technology costs have increased significantly compared to the volume increase. Can you explain the areas of technology spending and the need for capacity requirements? A: As we grow, our technology costs increase to ensure the latest technology is used. We are investing in application, hardware, network, and security to prepare for potential market surges. This ensures a seamless experience for market participants. (CEO)
Q: Regarding the KRA business, do you see any risks from the government's efforts to improve CKYC data quality? A: The KRAs hold more validated data compared to CKYC, which is yet to validate its data. The KRAs are expected to remain relevant due to their comprehensive data fields and recent regulatory support for integration with CKYC. (CEO)
Q: Can you provide insights into the impact of the recent hike in security transaction charges on CDSL's revenue? A: There is no direct impact on CDSL's depository business as the hike affects the trading side, particularly futures and options, which are not typically held in DAT accounts. (CEO)
Q: How do you plan to navigate the current softness in capital markets and the shift towards commodities? A: We continue to build and prepare our infrastructure for any market growth. The Indian market remains fundamentally strong, and we aim to provide seamless infrastructure to support future growth. (CEO)
Q: With the increase in technology spending, is there a portion that is variable versus investment for the future? A: Technology spending includes routine costs and future investments. The market's evolving nature makes it difficult to predict fixed versus variable costs, as new products and processes continuously emerge. (CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
