Central Depository Services (India) FY26 Annual Earnings Summary

SEBI-mandated reduction in KYC fetch (-20%) and creation (-75%) charges from April 2026 will pressure CVL's revenue and profitability.

An analyst raised concerns that a potential SEBI circular might reduce the number of KYC fetches required from KRAs, impacting CVL's revenue. Management advised waiting for the circular.

CDSL's share of new demat account additions fell to 82% in Q2 from 93% in Q3FY25, suggesting competitive pressure from NSDL.

Management acknowledged that technology and employee costs are rising and will continue, potentially compressing EBITDA margins.

Technology costs have risen sharply and management declined to provide a breakdown or guidance on future trajectory, raising concerns about margin pressure.

Analysts raised concerns about possible capping of KYC charges or changes in fetch rules, which could impact CVL's revenue. Management acknowledged the risk but said no changes are imminent.

Analyst noted a slight decline in incremental market share; management acknowledged competition but did not provide specific countermeasures.

The new code could alter the regulatory framework for depositories; management said they are studying it but gave no specifics.

Technology spend has grown 4x in three years and now exceeds employee costs; management declined to provide future cost trajectory.

An analyst noted a slight drop in incremental market share; management attributed it to seasonal factors but did not provide detailed data.