Shares of Central Depository Services (India) Ltd (CDSL) sank into the red following its muted earnings report for the three months ended June 30, 2025.
CDSL posted a net profit of Rs 102.4 crore for the quarter ended June, down 23.6 percent year-on-year, as compared to Rs 134 crore in the corresponding quarter in the previous year.
The firm's revenue from operations saw a marginal uptick of 60 basis points to Rs 259 crore, as against Rs 257.4 crore reported in the June quarter of FY25.
CDSL's revenue from Depository Services rose to Rs 221.85 crore in Q1 FY26, compared to Rs 197.9 crore in Q1 FY25. Sales from the Data Entry and Storage Services arm saw a decline, generating Rs 36.9 crore versus Rs 58.9 crore in the same quarter last year. Further, income from Repository Services increased to Rs 85.2 lakh in Q1 FY26, up from Rs 67.7 lakh in Q1 FY25.
The firm's earnings before interest, taxes, depreciation and amortisation (EBITDA) clocked in ar Rs 130.6 crore during the period under review, down 15.1 percent YoY as against Rs 154.4 crore in the year-ago period. CDSL reported a margin contraction of 960 basis points to 50.4 percent, down from 60 percent posted in the same quarter of the last fiscal.
At 9.50 a.m., shares of the capital market player were quoting Rs 1,573, lower by 2.6 percent in trade on the NSE.
Motilal Oswal said that CDSL's continued investments in human resources and technology for future growth could restrict gains from operating leverage, though the brokerage still expect EBITDA margins to expand to ~58.9 percent in FY27, up from 57.7 percent in FY25.
The brokerage sees a CAGR of 18 percent/19 percent/18 percent in revenue/EBIDTA/PAT for CDSL over FY25-27E. Motilal Oswal maintained its 'neutral' rating with a price target of Rs 1,570 per share, which indicates a three percent downside.
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