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KYC fee reduction impact
View Risks →Central Depository Services (India) Limited — Q4 FY26
CDSL reported consolidated Q4 FY26 total income of INR 268 crore (+4.7% YoY) and net profit of INR 80 crore (-20% YoY), impacted by lower IPO/corporate action revenue and mark-to-market losses.
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CDSL reported consolidated Q4 FY26 total income of INR 268 crore (+4.7% YoY) and net profit of INR 80 crore (-20% YoY), impacted by lower IPO/corporate action revenue and mark-to-market losses. Demat accounts crossed 18.01 crore (80%+ market share), with 2.7 crore new accounts added in FY26. Technology costs rose to INR 162 crore, surpassing employee costs, as management emphasized continuous investment to maintain scalability and value proposition. KYC fee cuts (fetch -20%, creation -75%) effective April 2026 will pressure CVL revenue. Guidance remains absent; management highlighted long-term growth potential from low penetration (9-10% of population) and new products like Gift City KRA. Risk: competitive pressure from the other depository and potential regulatory changes under the Securities Markets Code.
CDSL ने चौथी तिमाही (Q4 FY26) में कुल आय 268 करोड़ रुपये दर्ज की, जो पिछले साल से 4.7% ज़्यादा है। लेकिन मुनाफ़ा 80 करोड़ रुपये रहा, जो 20% कम है। इसकी वजह IPO और कॉरपोरेट एक्शन से कम कमाई और बाज़ार में नुकसान (mark-to-market losses) है। डीमैट खातों की संख्या 18.01 करोड़ पार कर गई, जिसमें 80% से ज़्यादा बाज़ार हिस्सेदारी है। FY26 में 2.7 करोड़ नए खाते जुड़े। टेक्नोलॉजी पर खर्च बढ़कर 162 करोड़ रुपये हो गया, जो कर्मचारियों के खर्च से भी ज़्यादा है। कंपनी का कहना है कि वह लगातार निवेश कर रही है ताकि सेवा बेहतर बनी रहे। अप्रैल 2026 से KYC फीस में कटौती (फ़ेच -20%, क्रिएशन -75%) से CVL की कमाई पर असर पड़ेगा। कंपनी ने कोई अनुमान नहीं दिया, लेकिन लंबी अवधि में विकास की उम्मीद है क्योंकि अभी सिर्फ 9-10% आबादी के पास डीमैट खाता है। नए प्रोडक्ट जैसे Gift City KRA से मदद मिलेगी। जोखिम: दूसरे डिपॉजिटरी से प्रतिस्पर्धा और सिक्योरिटीज़ मार्केट्स कोड के तहत नियमों में बदलाव।
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Read Transcript →Quarter Snapshot
Demat Accounts
18.01 crore
+2.7 crore in FY26
Total Demat accounts as of March 31, 2026, with 80%+ market share and 85-90% incremental share.
Folios
33.26 crore
FY26 figure
Folio count disclosed for FY26; Q1 FY27 folio count to be disclosed in next call.
KYC Fetch Charge
INR 28
-20% from INR 35
Effective April 1, 2026, fetch charges reduced by 20% as per SEBI circular.
KYC Creation Charge
INR 5
-75% from INR 20
Creation charges reduced by 75% effective April 1, 2026, impacting CVL revenue.
What Changed vs Last Quarter
DROPPED
No specific revenue or earnings guidance provided
CDSL does not provide specific revenue or earnings guidance, as stated at the start of the call.
DROPPED
Issuer fee hike pending with regulator
Management indicated that a proposal for an issuer fee hike (first in 10 years) is with the regulator and may be approved at an appropriate time.
NEW RISK
KYC fee reduction impact
SEBI-mandated reduction in KYC fetch (-20%) and creation (-75%) charges from April 2026 will pressure CVL's revenue and profitability.
NEW RISK
Competitive pressure from rival depository
Analyst noted a slight decline in incremental market share; management acknowledged competition but did not provide specific countermeasures.
NEW RISK
Regulatory uncertainty from Securities Markets Code
The new code could alter the regulatory framework for depositories; management said they are studying it but gave no specifics.
NEW RISK
Technology cost overrun risk
Technology spend has grown 4x in three years and now exceeds employee costs; management declined to provide future cost trajectory.
RISK GONE
Sustained high technology spend
Technology costs have risen sharply and management declined to provide a breakdown or guidance on future trajectory, raising concerns about margin pressure.
RISK GONE
Potential regulatory changes in KYC pricing
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.
RISK GONE
Incremental market share loss
An analyst noted a slight drop in incremental market share; management attributed it to seasonal factors but did not provide detailed data.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY26, Q3 FY25
Management acknowledged that technology and employee costs are rising and will continue, potentially compressing EBITDA margins.
Mentioned in Q2 FY26, Q3 FY26
An analyst noted a slight drop in incremental market share; management attributed it to seasonal factors but did not provide detailed data.
Mentioned in Q1 FY25, Q4 FY25
CDSL's insurance repository lags behind competitors with lower market share and limited traction despite 14 years of operation.
Mentioned in Q2 FY26, Q3 FY26
CDSL does not provide specific revenue or earnings guidance, as stated at the start of the call.
Mentioned in Q2 FY26, Q3 FY26
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.
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Guidance and risk preview
Guidance details appear as transcript coverage expands.
SEBI-mandated reduction in KYC fetch (-20%) and creation (-75%) charges from April 2026 will pressure CVL's revenue and profitability.
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