Q1 2027 Central Depository Services (India) Ltd Earnings Call Transcript
Key Points
- Opened about 58 lakh new Demat accounts during Q1 FY2027, bringing total accounts to 18.59 crore and maintaining a market share of approximately 80%.
- Consolidated total income grew 15.4% year-over-year to INR 340.50 crore, and consolidated net profit rose 15.7% to INR 118 crore.
- CVL, the subsidiary, reported a 22% year-over-year increase in revenue from operations, driven by growth in other businesses and digital service offerings.
- Received notable industry recognitions, including 'Most Innovative Fintech Company in Asia Pacific' by Global Finance magazine and 'Innovation in Settlement Efficiency' at the Global Custodian Leaders in Custody Asia awards.
- Strengthened leadership with the appointment of two Executive Directors, approved by the board and shareholders, to enhance operations, technology, and risk management.
- KYC revenue impact from SEBI's rate cut was partially offset by higher volumes and new revenue from a search API charge, demonstrating resilience.
- Maintained a conservative investment approach, with no direct equity mutual fund investments and only a small ETF allocation (5-7%), reducing market risk.
- Standalone net profit declined to INR 144 crore in Q1 FY2027 from INR 152 crore in the same quarter last year, partly due to lower dividend income from subsidiary.
- CVL's profit after tax declined 5% year-over-year to INR 12.11 crore, impacted by a 31% increase in total expenditure.
- Annual issuer charges growth of 12.3% was lower than expected despite a 17% increase in folio count, partly due to lower unlisted company revenue.
- Incremental Demat account market share fell by 420 basis points since March 2026, indicating increased competition from fintech brokers.
- Employee costs rose approximately 30% quarter-over-quarter due to year-end appraisals and variable pay, which may pressure margins in the short term.
- KYC revenue faced a significant pricing reset by SEBI, with fetch charges reduced by 20% and new charges by 75%, though partially offset by volumes and new API fees.
- The new search API revenue is still stabilizing, with volumes dropping as intermediaries adjust, making future KYC revenue uncertain.
Ladies and gentlemen, good day and welcome to the CDSL Q1 FY2027 conference call hosted by HDFC Securities.
(Operator Instructions)
Mr. Amit Chandra from HDFC Securities.
Good afternoon, everyone. On behalf of HDFC Securities, we welcome you all to the CDSL Quarter One FY2027 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 the call with a brief overview of the quarter by Mr. Nehal Vora, and then weâll open up the floor for the question answer session. Thank you, and over to you, Nehal, sir.
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First of all, thank you, Amit. 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 CDSLâs
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