Central Depository Services (India) Ltd (CDSL), a pivotal entity in India's financial infrastructure, released its Q4 FY25 financial results on May 3, 2025. The announcement highlighted a notable decline in profitability, leading to a 4% drop in CDSL share price, which closed at Rs 1,270.60 on May 5, 2025 .
Financial Performance Overview
Net Profit: Rs 100.3 crore, marking a 22.5% decrease year-over-year from Rs 129.4 crore.
Revenue from Operations: Rs 224.4 crore, down 6.8% YoY.
EBITDA: Rs 109 crore, a 26.1% decline YoY, with margins narrowing to 48.7% from 61.4%.
Segment-wise, the Depository Services revenue experienced an 18% quarter-on-quarter drop, while Data Entry & Storage revenue decreased from Rs 55.14 crore to Rs 42.51 crore YoY .
Market Reaction
The market responded to these results with a 4% decline in CDSL's share price, settling at Rs 1,270.60 on May 5, 2025. This movement reflects investor concerns over the company's declining profitability and operational metrics .
Dividend Announcement
Despite the downturn, CDSL's board has recommended a final dividend of Rs 12.50 per share (125% of face value) for FY25. This proposal awaits shareholder approval at the upcoming Annual General Meeting, with the record date to be announced subsequently .
Operational Highlights
Demat Accounts: Net additions slowed to 64 lakh in Q4, a 30% decline from the previous quarter.
Assets Under Custody: Decreased to Rs 71 lakh crore from Rs 75 lakh crore.
These figures indicate a deceleration in investor participation and a reduction in the value of assets managed, contributing to the overall decline in revenue.
Analyst Perspectives
Analysts attribute the subdued performance to reduced transaction charges and a slowdown in new account openings. The decline in demat account additions suggests a tapering of retail investor enthusiasm, possibly due to market volatility and fewer IPO activities .
About CDSL
Established in 1999, CDSL is one of India's two central securities depositories, providing services for the electronic holding and settlement of securities. As of March 2025, CDSL serves over 11.56 crore investors, maintaining its position as a cornerstone of India's capital market infrastructure.
For more information, visit https://www.indiratrade.com/