Neutral CDSL; target of Rs 1520: Motilal Oswal

Neutral

Motilal Oswal's research report on CDSL

CDSL’s operating revenue declined 1% YoY but grew 23% QoQ to INR3.2b (7% beat) in 2QFY26. The sequential growth was propelled by a 195% growth in IPO & corporate action charges and 28% growth in online data charges. For 1HFY26, its revenue remained flat YoY at INR5.8b. EBITDA declined 11% YoY but rose 36% QoQ to INR1.8b, resulting in an EBITDA margin of 55.7% (vs. 62% in 2QFY25 and 50.4% in 1QFY26). For 1HFY26, EBITDA declined 13% YoY to INR3.1b. Operating expenses grew 15% YoY to INR1.4b, driven by a 32%/10% YoY increase in employee costs/other expenses.

Outlook

We reiterate our Neutral rating on the stock with a one-year TP of INR1,520 (premised on a P/E multiple of 45x on FY28E earnings).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

CDSL_04112025_Motilal Oswal