Shares of Central Depository Services (India) extended gains from its previous session on June 2, and rose as much as 9% to its intraday high level of Rs 1,665 on the National Stock Exchange.
At its June 2 intraday high, the stock has gained 10% in these two sessions. The shares have rallied by over 40% from its March 2025 lows. The stock has risen over 60% in the last one year and over 26% in the last one month. The stock trades over 16% below its 52-week high level, while over 81% higher than its 52-week low level, which it touched in June last year.
The depository’s consolidated net profit for the March quarter fell over 22% on year to Rs 100.31 crore, mainly due to a near 7% on-year decline in its consolidated revenue. CDSL’s revenue for the period was recorded at Rs 224.45 crore.
Apart from a fall in the sales, a steep increase in computer technology related expenses also delivered a blow to the company’s earnings for the period. Its staff and depreciation costs also went up by 14% and 78%, respectively.
CDSL opened 30% fewer net accounts during the fourth quarter of FY25, compared to the December quarter. The figure for the March quarter was 64 lakh, compared to 92 lakh in the previous quarter. Demat custody for CDSL also fell for the second quarter in a row to Rs 71 lakh crore from Rs 75 lakh crore during the December quarter.
Its board of directors has approved a dividend payout of Rs 12.5 per share for its shareholders. Lower market activity and fewer IPO listings led to a reduction in revenue, Motilal Oswal had said in its earnings review report.
The brokerage said it sees the company’s EBITDA margins expanding to 58.2% in FY27 from 57.7% in FY24. However, it has cut its earnings estimates by 15% and 13% for FY26 and FY27, respectively. It has ‘neutral’ rating on the stock with a target price of Rs 1,150.
