Central Depository Services (India) Limited (CDSL) AI Stock Analysis

• Market Cap: ₹248.88B
• Dividend Yield: 0.82%
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 56.6
• Beta (1Y): 2.03
• Revenue Growth: 3.63%
• EPS Growth: -11.24%
• Country: IN
• Employees: 335
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 6.40
• Shares Outstanding: 209,000,000
• 10 Day Avg. Volume: 2,430,715
• 30 Day Avg. Volume: 1,785,811
• PEG Ratio: 1.85
• Price to Book (P/B): 14.21
• Price to Sales (P/S): 23.12
• P/FCF Ratio: 64.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,377.50
• Price Target Upside: -6.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 24.11
• Revenue Forecast (FY): ₹11.83B

• Rating: 65 Neutral
• Price Target: ₹1,284.00 ▼(-12.57% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

Score is driven primarily by strong financial performance (high profitability, strong growth, low leverage, and solid cash generation). Offsetting this are weak technicals (below key moving averages with negative MACD) and a relatively expensive valuation (high P/E with modest yield).

Positive Factors

High Profitability & Margins

Sustained high net margins and strong recent revenue growth indicate durable operating leverage from a low-variable-cost depository platform. This margin profile supports reinvestment, shareholder returns and resilience to moderate revenue volatility over the next 2–6 months.

Strong Balance Sheet Capitalization

A high equity ratio and low leverage provide long-term financial flexibility to invest in technology, absorb shocks and meet regulatory capital needs. Robust ROE shows efficient capital use, supporting sustainable growth and credibility with counterparties.

Solid Cash Generation

Consistent conversion of earnings into cash and accelerating free cash flow growth underpin durable funding for capex, platform upgrades, buybacks or dividends. Strong cash generation reduces refinancing risk and supports strategic initiatives over coming months.

Negative Factors

Revenue Sensitivity to Market Activity

CDSL’s fee-based model is structurally tied to capital market participation and transaction counts. Extended market slowdowns or reduced investor activity would materially lower transaction fee revenue, making top-line and earnings performance cyclical over multi-month horizons.

Negative Recent EPS Growth

A negative EPS growth metric despite revenue growth signals potential one-off items, margin variability or rising costs affecting per-share earnings. This divergence warrants monitoring for sustainable profit conversion and could imply earnings volatility in the medium term.

Rising Liabilities to Monitor

While leverage remains low, a rising liability trend could indicate growing obligations or funding needs. If sustained, it can erode financial flexibility, increase fixed costs, or constrain capital deployment, making near-term balance sheet dynamics important to watch.

Central Depository Services (India) Limited Business Overview & Revenue Model

Company Description

Central Depository Services (India) Limited provides depository services in India. The company offers various services, such as account opening, dematerialization, processing delivery and receipt instructions, account statement, re-materialization, pledging, nomination, transmission of securities, change in address, bank account details, and SMS services for depository participants. It also provides facilities to issuers to credit securities to a shareholder's or applicants demat accounts; KYC services in respect of investors in capital markets to capital market intermediaries; facilities for holding of insurance policies in electronic form to the holders of these policies; and facilities for holding and transacting in electronic negotiable warehouse receipts. In addition, it offers services, such as electronic access to security information, electronic access to security information and execution of secured transaction, e-voting, e-notices, e-locker, and mobile application. It serves investors through depository participants, issuer companies, capital market intermediaries, insurance companies, and warehouse service providers/warehouses. The company was incorporated in 1997 and is based in Mumbai, India.

How the Company Makes Money

CDSL generates revenue primarily by charging fees for depository and depository-related services across the securities lifecycle. Key revenue streams typically include: (1) Depository services to investors via depository participants (DPs): CDSL earns fees linked to demat account maintenance and transaction activity processed through its system (e.g., credits/debits of securities, transfers, and other account-level depository transactions), with end investors generally accessing these services through DPs (brokers, banks, and other intermediaries). (2) Settlement-related and market transaction revenue: As part of the post-trade ecosystem, CDSL earns fees associated with processing and facilitating electronic settlement movements of securities for market trades and other off-market transfers, benefiting from higher transaction volumes when market activity increases. (3) Issuer and corporate action related services: CDSL provides services to issuers (listed companies and other security issuers) connected to dematerialised securities, such as supporting corporate actions (e.g., dividend/interest/redemption related processing where applicable to depository systems) and other issuer-facing depository connectivity/services; revenues arise from service/transaction fees charged for these activities. (4) Ancillary/technology-enabled services: CDSL also offers additional depository-adjacent services and platforms (where provided) that leverage its infrastructure and participant network; revenue arises from service charges and usage-based fees. CDSL’s earnings are influenced by the scale of demat accounts on its platform, the number and activity level of DPs connected to it, overall capital market participation and trading volumes (which drive transaction counts), and the breadth of issuer services routed through the depository system. Specific fee schedules, product-wise revenue split, and material partnership terms are null.

Central Depository Services (India) Limited Financial Statement Overview

Summary

Strong profitability and growth (TTM net margin 43.89%, revenue up 33.05% YoY) supported by efficient operations. Balance sheet is healthy with low leverage and high equity ratio (81.42%) and strong ROE (29.90%), while cash generation is solid (operating cash flow to net income 1.03; free cash flow growth 23.80%).

Income Statement

The company demonstrates strong profitability with a consistent increase in revenue over the years. The TTM net profit margin stands at 43.89%, indicating effective cost management. Revenue growth is robust, with a 33.05% increase over the previous year. Gross profit margin is solid at 100%, and both EBIT and EBITDA margins are strong, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a healthy financial position with low leverage, evidenced by a low debt-to-equity ratio. The equity ratio is quite strong at 81.42%, indicating a solid equity base. Return on Equity (ROE) is impressive at 29.90%, demonstrating efficient use of shareholders' equity. However, the slight increase in total liabilities warrants monitoring.

Cash Flow

Cash flow metrics are robust, with a strong operating cash flow to net income ratio of 1.03, indicating effective cash generation relative to profit. The free cash flow growth rate is notable at 23.80%, supporting future growth opportunities. The free cash flow to net income ratio is positive at 0.73, aligning with healthy cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.03B	10.82B	8.12B	5.55B	5.51B	3.44B
Gross Profit	8.23B	8.22B	6.27B	4.22B	4.50B	2.70B
EBITDA	6.89B	7.44B	5.83B	3.85B	4.20B	2.69B
Net Income	4.73B	5.27B	4.19B	2.76B	3.11B	2.00B
Balance Sheet
Total Assets	23.84B	21.62B	17.82B	14.57B	13.26B	10.84B
Cash, Cash Equivalents and Short-Term Investments	9.63B	9.56B	6.86B	5.89B	8.42B	7.44B
Total Debt	38.98M	29.79M	13.56M	23.70M	2.91M	2.77M
Total Liabilities	5.98B	3.58B	2.74B	2.00B	1.89B	1.64B
Stockholders Equity	17.43B	17.60B	14.63B	12.14B	10.93B	8.77B
Cash Flow
Free Cash Flow	3.36B	3.87B	3.12B	402.64M	2.57B	1.74B
Operating Cash Flow	3.77B	5.43B	3.86B	2.49B	2.83B	1.93B
Investing Cash Flow	-1.21B	-2.98B	-2.49B	-1.29B	-1.45B	-1.07B
Financing Cash Flow	-2.62B	-2.31B	-1.69B	-1.55B	-941.79M	-471.64M

Central Depository Services (India) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1468.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CDSL, the sentiment is Negative. The current price of 1468.6 is above the 20-day moving average (MA) of 1242.23, above the 50-day MA of 1316.77, and below the 200-day MA of 1521.88, indicating a bearish trend. The MACD of -39.19 indicates Negative momentum. The RSI at 38.47 is Neutral, neither overbought nor oversold. The STOCH value of 45.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CDSL.

Central Depository Services (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEOJITFSL	73 Outperform	₹16.69B	40.70	―	1.88%	-11.33%	-40.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JMFINANCIL	66 Neutral	₹117.49B	11.48	―	2.93%	-10.92%	152.70%
CDSL	65 Neutral	₹248.88B	56.57	―	0.82%	3.63%	-11.24%
MOTILALOFS	65 Neutral	₹398.23B	22.71	―	0.57%	-14.24%	-40.53%
ANGELONE	65 Neutral	₹209.99B	19.80	―	1.88%	-12.65%	-42.72%

Central Depository Services (India) Limited Corporate Events

CDSL Expands Team Overseeing Material Event Disclosures to Stock Exchanges

Central Depository Services (India) Limited (CDSL), a key Indian securities depository, offers dematerialisation, electronic custody, and settlement services that underpin trading and post-trade infrastructure for investors, brokers, and other market intermediaries. Its operations are closely aligned with regulatory frameworks governing listed entities and disclosure obligations in India’s capital markets.

CDSL has updated its list of designated officers responsible for determining the materiality of corporate events and disclosures to stock exchanges in line with Regulation 30(5) of SEBI’s Listing Regulations. The Chief Information Security Officer, Akhil Wadhavkar, and Head of Human Resource & Administration, Joy Banerjee, have been newly added to this group, signalling an emphasis on information security and human capital considerations in assessing material events and ensuring timely, compliant disclosures for stakeholders.

CDSL Subsidiary Wins SEBI Nod for ₹10 Crore Investment in RIX Systems

Central Depository Services (India) Limited has disclosed that its subsidiary Centrico Insurance Repository Limited has received approval from the Securities and Exchange Board of India to invest ₹10 crore in RIX Systems & Solutions Private Limited. The SEBI approval clears a regulatory hurdle for CDSL’s insurance repository arm to deploy capital into RIX, potentially strengthening its technology capabilities and expanding its footprint in allied financial services infrastructure.

The investment, structured through CIRL, underscores CDSL’s strategy of leveraging its subsidiaries to participate in complementary platforms that can enhance digital record-keeping and back-end systems in the financial ecosystem. Stakeholders may view this step as a measured growth move within the regulated framework, with the potential to deepen CDSL’s presence in adjacent solution providers supporting capital markets and insurance services.

CDSL Publishes Q3 and Nine-Month FY26 Audited Results in Newspapers

CDSL has notified the stock exchange that it has published extracts of its consolidated and standalone audited financial results for the third quarter and nine months ended 31 December 2025 in the Financial Express and Loksatta newspapers. The audited results, which are also available on the company’s website, have been released in compliance with disclosure requirements under SEBI’s Listing Regulations, underscoring CDSL’s adherence to regulatory norms and its ongoing transparency in financial reporting for investors and market participants.

CDSL Releases Q3 and Nine-Month FY 2025-26 Investor Presentation

CDSL has released its investor presentation for the third quarter and nine-month period ended 31 December 2025, in line with disclosure requirements under SEBI’s Listing Obligations and Disclosure Regulations. The presentation, which is also available on the company’s website, is intended to support an upcoming investor conference call and provides stakeholders with updated financial and operational information for the reporting period.

CDSL Shuts Trading Window Ahead of December-Quarter Results

CDSL has announced that its trading window for dealing in the company’s securities will be closed for all designated persons and their immediate relatives from 1 January 2026 until 48 hours after the company discloses its financial results for the quarter ended 31 December 2025. The move is in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct, underscoring its adherence to regulatory norms and governance standards ahead of the forthcoming quarterly earnings announcement, the date of which will be communicated separately.