CDSLNSEQ4 FY26May 07, 2026

Central Depository Services (India) Limited

7,773words

92turns

15analyst exchanges

5executives

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Management on call

Nehal Vora

MANAGING DIRECTOR AND CEO

Girish Amesara

CHIEF FINANCIAL OFFICER

Sunil Alvares

MANAGING DIRECTOR &

Kamlendra Srivastava

MANAGING

Amit Chandra

HDFC SECURITIES

Key numbers — 40 extracted

1 lakh crore

f integration, and trust. The combined average daily turnover at BSE and NSE for March was around 1 lakh crores. At the same time, investor participation continued to broaden. I am happy to report that we hav

22.4 crore

same time, investor participation continued to broaden. I am happy to report that we have crossed 22.4 crores demat accounts as a depository industry. CDSL saw more than 2.7 crores Public

2.7 crore

port that we have crossed 22.4 crores demat accounts as a depository industry. CDSL saw more than 2.7 crores Public accounts opened this financial year, bringing our total to

18.01 crore

s Public accounts opened this financial year, bringing our total to 18.01 crores demat accounts as on March 31st, 2026, maintaining our 80% plus market share with a consistently

80%

l year, bringing our total to 18.01 crores demat accounts as on March 31st, 2026, maintaining our 80% plus market share with a consistently incremental market share of 85% to 90%, supported by the co

85%

31st, 2026, maintaining our 80% plus market share with a consistently incremental market share of 85% to 90%, supported by the continuous trust of investors and depository participants on our platfor

90%

026, maintaining our 80% plus market share with a consistently incremental market share of 85% to 90%, supported by the continuous trust of investors and depository participants on our platform. We

rs,

s, in the Market Infrastructure Institutions category as India's Best CEO of 2026. Among many others, CDSL IPF also received multiple awards at the IAMAI awards for various investor education campaign

INR1,096 crore

ults, I'm glad to share that for the Year ‘2025-26’, we've reported a stand-alone total income of INR1,096 crores and a standalone net profit of INR468 crores. The CFO will take you through the detailed numbers

INR468 crore

-26’, we've reported a stand-alone total income of INR1,096 crores and a standalone net profit of INR468 crores. The CFO will take you through the detailed numbers shortly. Steadily moving forward into the

INR985 crore

financial year. The total income on a standalone basis is achieved at INR1,096 crores as against INR985 crores for the previous year. The standalone net profit for financial year '25-'26 is achieved at INR46

INR462 crore

ear. The standalone net profit for financial year '25-'26 is achieved at INR468 crores as against INR462 crores. Public Speaking on the fourth quarter of this financial yea

Guidance — 16 items

Nehal Vora

opening

“Through continuous innovation and investor education, we aim to deliver consistent and sustainable financial and business performance while upholding our investor-centric culture.”

Sunil Alvares

opening

“So far as CVL was concerned, the revenue from operations for FY26 was INR182 crores as compared to INR231 crores for the previous year.”

Sunil Alvares

opening

“Total income for FY26 was INR198.17 crores as against INR254.94 crores.”

Sunil Alvares

opening

“Total expenditure in FY26 was INR124.09 crores as against INR108.44 crores for the previous financial year.”

Supratim Datta

“If you could give some color on that, that also will be very helpful.”

Supratim Datta

“Lastly, could you give us the sense around Public how many folios did you end FY26 with?”

Nehal Vora

“The intangibles is the loyalty, which we continue to enjoy, the commitment we continue to enjoy the market share of new account openings we continue to enjoy, the age bracket, which I mentioned about lower age people entering the ecosystem and trusting us with their hard-earned savings and money for their newly born also these are the core intangible which we are really enjoying and hope to continue to enjoy in the future.”

Nehal Vora

“In terms of folio increase, we will be disclosing this as per our practice as the CFO mentioned earlier, in the first quarter call of the next, financial year after the June quarter end.”

Nehal Vora

“So, at that time, you will be able to see what our folio situation has been as compared to the previous year.”

Madhukar Ladha

“Can you provide me with some breakup between Fetch and new record creation, even like sort of proportion, what percentage is from Fetch and data creation, record creation that will be helpful.”

Risks & concerns — 4 flagged

And when that is not constant, it's difficult for me to commit on what would be the constant at CDSL then because our commitment is to remain constant as a partner to the entire ecosystem.

— Nehal Vora

And hence, it is very difficult to give a firm answer if whether this is good or this is not good because goalposts are all moving in a very rapid basis.

— Nehal Vora

So just wanted to understand whether we are seeing any incremental trends because the reason why I ask this question is that with our incremental market share, though our outstanding market share is still stable on demat accounts, but incremental market share is seeing a bit of pressure, not big bit, but small bit.

— Sanketh Godha

So are you seeing any enemy competitive pressure from the, any existing DP either trying to be more open architecture giving for 2 companies or even migrating from one to another in the sense.

— Sanketh Godha

Q&A — 15 exchanges

My first question is on the technology cost. You have highlighted previously that you have been investing for the future. This line item has been growing at somewhere around 30% for the last 2 years. Just wanted to understand over the last 2 years, what kind of capacity have you already created versus when you started 2 years back? If you could give us some color? And versus 2 years back now, how much more folios or how much more demat accounts can you now handle versus when you started 2 to 3 years back? If you could give us some color on how this technology spend has actually translated into

Nehal Vora

So, thank you for your questions, Supratim. I think one needs to see this business, and I have been talking about this, that technology is the DNA of our business. It's kind of the Raw Material, Work in Progress, and Finished goods. What we have done over the years is creating, both horizontal and vertical scalability. And you would have seen that in September 2019, we were 1.8 crore demat accounts. Today, we are about 10x plus more in a short period of 6 years. So, technology has to cope with the scale, both in terms of infrastructure, application, security and the linkages which form this. A

Sir, my question is also on the technology cost, and I know you have answered it in quite detail. But just to get some numbers around it because the rise in the cost has been pretty steep. It has been 4x over the last 3 years. And now the technology cost is higher than the employee cost for the full year on a consol basis. So, if you can provide some numbers around how much of this cost of INR162 crores is regulatory led or related to the upgrades of the existing systems? Or is it a catch-up in terms of versus what the competition is investing? And if you can provide some numbers, what is the

Nehal Vora

So, thank you, Amit, for your question. I would first like to start off that technology cost, as you have rightly pointed out that the technology cost on a consolidated basis has overtaken the human resource cost. This kind of demonstrates my vision, which I have been articulating in various investor calls in the past that we are a tech-based and applied technology-based company. Our intent is to ensure that the efficiency and the leverage effect of technology rollout will overtake the employee cost. So, it's becoming a more tech-based company supported by able humans, is how CDSL is restructu

Hi. Morning. Just one question on online data charges. Can you provide me with some breakup between Fetch and new record creation, even like sort of proportion, what percentage is from Fetch and data creation, record creation that will be helpful. I think in the previous question, I think you did not mention the pledge revenue. So, it will also be helpful if you could give me the pledge revenue? Yes, that's it from my side. Thanks.

Nehal Vora

Yes. S,o the first question I ask Sunil to answer. Second one, the CFO, Girish, to answer. Typically, the breakdown between fetch and creation is about 80%, 20%. Pledge income for March quarter is INR6.30 crores. Thank you and all the best. Thank you.

Congratulations on the quarter. My first question is the expenses margin. Technology and the employee-related expense have increased during the year. Should we expect that to continue over the next few years versus a large investment lead in future growth inactives? And my second question, unidentified investor and app strategy. Could management on the long-term strategy of the unidentified investor app, how would you see the engagement monetization evolution of the overtime? The third question is data app business opportunity. Do you see the data service have the API the infrastructure and ve

Nehal Vora

Okay. Thank you for your questions. The first question was the employee and technology costs. See, we don't give any futuristic statements. And I have, I think, given a very detailed explanation on how the technology spend is being planned as ethos or as a foundation for CDSL. If you see, we are in a business where technology and human resource are the only cost, there is no other cost which is there to this business. And it has to be a state-of-the-art to ensure that the value proposition remains extremely strong. But unfortunately, I'm not able to give you futuristic statements because we do

Thank you for the opportunity. So, one data keeping question is on the impairment cost for the quarter. And second question, sir, is with respect to one of the DPs migrating fully to the competition. So just wanted to understand whether we are seeing any incremental trends because the reason why I ask this question is that with our incremental market share, though our outstanding market share is still stable on demat accounts, but incremental market share is seeing a bit of pressure, not big bit, but small bit. So are you seeing any enemy competitive pressure from the, any existing DP either t

Nehal Vora

So, I'll ask the CFO to answer the first question. But before that, I'll answer your second question. I think your information is slightly misplaced. There is no DP which has completely moved. It continues to remain on both the platforms. In terms of competition is the way of life, and that's why we have 2 depositories. And I think that is to ensure that the best value proposition continues to remain driven to the ecosystem, to the intermediaries and to investors. So that is basically the, and I would like to welcome that because that's how we have always functioned as India has always functio

Hi, sir. I just had two quick questions. Am I audible?

Management

Hi, is this better?

Nehal Vora

Yes, it's better. Sir, the first one was on the KYC regulation. So, for example, I think from 1st April onwards, that fetch rate has reduced from 35 to 28 and probably creation fees also to some extent. So, on a like-to-like basis, if you can help us with what exactly would be the rate impact, is it a 20% rate impact which we should build, assuming volumes remain same? And sir, the second question was, sir, I think on the technology people have asked you a lot already, but I just want to say that obviously 24 crores demat accounts which we have right now is a number which has grown 5x in the l

Yes, the first question is what was answered.

Sunil Alvares

Yes. with effect from 1st of April, the fetch charges have been reduced by 20% from INR35 to INR28 and the creation charges have been reduced by 75% from INR20 to INR5 Sir 80% of our KYC charges. It's going to be across basically the industry. So, it is not only for CVL. No, sir, 80% of our right now KYC charges we get is creation, you said, the mix of creation and fetch 80% is creation. 80% is fetch and 20% is create. Okay. Thanks a lot.

Just continuing with this question on KYC, I just wanted to get some sense on what are the counter we have to kind of recoup some of the lower revenues now from the KYC?

Nehal Vora

Yes. So, I'll ask Sunil to answer that, but the intent is that as markets deepen, more investors will come into play. This is an incentivization which the regulator believes with lower cost, more people will want to join the ecosystem. So, the entire population of people investing in securities market will grow further, which will lead to a higher number of people within the ecosystem.

Sorry to harp this KYC thing again. So, one is the implementation of one India, one nation, one KYC. Theoretically, how does that change the business model and approach? Do the fetches increase and creation go down? Or how does that really kind of work? That is one. And second is from a competitive dynamic’s perspective with quite a few players now wanting to get into the discount broking model, we've heard quite a few. How is the kind of negotiations or competitive environment there with respect to getting onboard on to the new players that are coming? That would be my 2 questions. Thanks.

Nehal Vora

So, your first question is about one KYC. And I think KRAs are well positioned, not only CVL, but all KRAs are well positioned because there's a validation process, which will ensure that the expectations out of KYC becomes more sharper or more influenced by, as there'll be an intermediary layer of KRA. That's the way we see it. But we'll have to wait for the formal announcements to happen to see what the impact is. In terms of new discount brokers wanting our platform, etc., again, going back to my earlier reply that foundationally, if we are providing value proposition, speed and our investm

Just a couple of questions on my end. So just wanted clarity, you said the split between creation and Fetch was 80% 20%? Or was it the other way around?

Nehal Vora

Creation was 20%, Fetch is 80%. And I think you mentioned on last quarter's call that there was a shift in volume in the revenue mix towards fetch. Is that continuing? Or is it in steady state? It was always that. Okay, thank you. That's it from my end.

Yes, sir. Thanks for taking the question Most of the questions have been answered. Just one question on the online data charges. So as against INR35, what is our blended charge as of 31st March? And as from today, what is that blended price charge posts the negotiation with the client? Have you taken the entire 20% price cut?

Nehal Vora

So, there is no question of a blended cost as you are mentioning. Each one has its own cost and driven by what SEBI has described.

Hi, good afternoon to everyone, and congratulations for the year. Thank you for taking my question. I have just one quick question. How are we billing our customers for the depository segment? Like basically, our core revenue drivers? And how are we recognizing those revenue for this segment? And if we have any key metric which we can measure to see it translate to our top line?

Nehal Vora

So, I think the key revenue drivers is I think put down. It's part of our investor presentation is the market-based transaction charges and also folio-based charges, which are charged to the issuer companies. You can do a trend analysis of the past to see as the demat accounts grow what has been the increase in the portfolio-based issuer charges versus the transaction-based charges, which is a function of the market volumes also. So, I think it's fairly clearly identified in the presentation, which is put out on our website. So, you could have a look at it. If you have any further queries, you

Hello. Thanks for this opportunity I have only one question. Sir, congratulations on the good set of numbers. Sir, if you can explain some principles on pricing. Last 2 years, if you see at an economy level, there is inflation of 5% to 6%. Now when number of accounts increase and the transactions increase, operational leverage kicks in and therefore, there is always this sense that prices should reduce. Therefore, now when would you consider a change, an upward change in prices? Could you explain the principles and how these decisions are taken? And how much is the regulatory interface as far

Nehal Vora

Yes. I think it's a very good question, Mehul. I think the intent is that inclusion. And as we've seen in the mobile phone market, what were the charges when it started off, it's kind of become 120 or 125 of that because that scale grows, the charges go down so that there is more usage, more inclusion. So, the same fundamental principle on which it is based. CDSL has always been very fair in terms of ensuring that we are cheaper than our competition, giving that value proposition also. So, it's giving lower cost for inclusivity for more and more players to come into the fold, but also not comp

No, I would just like to thank everybody for your participation and continue to remain safe and healthy. Thank you, everyone.

Management

Speaking time

Nehal Vora

Moderator

Girish Amesara

Amit Chandra

Sanketh Godha

Harshit Toshniwal

Sunil Alvares

Vetrivil

Rohan Nagpal

Madhukar Ladha

Opening remarks

Amit Chandra

Yes, thank you operator. Good afternoon, everyone. On behalf of HDFC Securities, we welcome you all to the CDSL Quarter 4 FY 2026 earnings call. Today we have with us the management team of CDSL represented by Mr. Nehal Vora, MD and CEO; Mr. Girish Amesara, CFO; and other senior leaders from the management team. We will start with a brief overview of the quarter by Mr. Nehal Vora and then we will open up the floor for the question-and-answer session. Thank you and over to you, Nehal sir.

Nehal Vora

I'd like to thank you, Amit, for the kind introduction. A very good afternoon and welcome everyone. I hope each of you and your loved ones are safe and healthy. Thank you for joining us today to discuss CDSL's financial results for the fourth quarter and financial year 25-26, which ended on March 31, 2026. We've posted a detailed investor presentation on our website for your reference. I'm joined by the CDSL leadership team. Let us start with the industry highlights and I would like to take you through some of the key aspects of our performance. The recent geopolitical developments have added some uncertainty to the global environment, influencing energy prices, capital flows, and short-term market sentiment. Whilst India's fundamentals continue to remain extremely strong, these global crosscurrents have led to phases of volatility, including in Indian markets. In such periods, the role of trusted market infrastructure becomes even more important. Our priority has remained to ensure th

Girish Amesara

Thank you, Nehal. Good morning, everyone. First, I'll speak on standalone numbers for the full financial year. The total income on a standalone basis is achieved at INR1,096 crores as against INR985 crores for the previous year. The standalone net profit for financial year '25-'26 is achieved at INR468 crores as against INR462 crores. Public Speaking on the fourth quarter of this financial year. On a standalone basis, the income is achieved at INR215 crores as against INR205 crores for the corresponding quarter of the previous year. The stand-alone net profit for the quarter is achieved at INR69 crores as against INR81 crores for the corresponding quarter of the previous year. In terms of consolidated numbers for the financial year '25-'26, the total income is achieved at INR1,239 crores as against INR1,199 crores for the previous year. The consolidated net profit is achieved at INR455 crores as against INR526 crores for the previous year. For the fourth quarter on a consolidated basis

Sunil Alvares

Thank you, Girish. So far as CVL was concerned, the revenue from operations for FY26 was INR182 crores as compared to INR231 crores for the previous year. Other income was INR15 crores as against INR23 crores for the previous year. Total income for FY26 was INR198.17 crores as against INR254.94 crores. Total expenditure in FY26 was INR124.09 crores as against INR108.44 crores for the previous financial year. Profit before tax for this year was INR74.07 crores as against INR146.50 crores and profit after tax was INR55.36 crores as against INR109.95 crores. With this, I would open the floor for your questions. Thank you.

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