Central Depository Services (India) Limited profit rises 28% in Q2

Central Depository Services (India) Limited reported standalone net profit of ₹163.34 crore for Q2 FY27, a 28.1% year-on-year increase, as strong primary-market activity helped lift operating income to ₹339 crore. The September-quarter result also reflected the company’s scale, with CDSL accounting for more than 80% of India’s 24 crore demat accounts.

How did CDSL perform in Q2 FY27?

CDSL recorded broad-based growth in its quarterly financial performance for the period ended September 30, 2026. Standalone total income rose to ₹358.70 crore from ₹289.90 crore in the corresponding quarter of the previous year, while standalone operating income increased to ₹339 crore from ₹272 crore. Standalone EBITDA grew to ₹233 crore from ₹179 crore, and standalone profit rose from ₹127.50 crore to ₹163.34 crore.

The consolidated performance also showed double-digit growth. Consolidated total income increased 22.2% year-on-year to ₹417.30 crore, while consolidated revenue was ₹394.48 crore, compared with ₹318.88 crore a year earlier. Consolidated net profit rose 23.8% to ₹173.30 crore from ₹139.93 crore. Consolidated EBITDA stood at ₹228.09 crore, up from ₹176.31 crore, with EBITDA margin improving to 57.8% from 55.3%.

What drove CDSL's earnings growth during the quarter?

CDSL said India’s securities market continued to see activity in the primary market during the quarter, despite a more volatile broader market environment and geopolitical concerns. Primary-market activity is relevant to a depository because new issues and investor participation can add accounts, securities and transaction-linked activity across the capital-market ecosystem.

The company’s standalone operating income of ₹339 crore marked a recovery from ₹212 crore reported in Q4 FY26. The rise in income was accompanied by faster profit growth, with standalone net profit increasing 28.1% year-on-year. The reported EBITDA growth and expansion in consolidated EBITDA margin indicate that operating profitability improved alongside revenue growth during the quarter.

CDSL’s earnings per share was reported at 7.2, compared with a forecast of 7.0 cited in the supplied earnings information. Revenue was reported at ₹347 crore in that comparison, while the company’s filings and investor presentation separately reported standalone operating income of ₹339 crore and consolidated revenue of ₹394.48 crore. These measures are presented on different reported bases and should not be treated as directly interchangeable.

How large is CDSL's depository business now?

CDSL maintained a leading position in India’s depository market, accounting for more than 80% of the country’s total 24 crore demat accounts across depositories. Its demat account base exceeded 19 crore during Q2 FY27, with 75 lakh additions in the quarter and 17% year-on-year growth in total accounts, according to the company’s filing highlights.

Assets under custody crossed ₹89 lakh crore, reflecting the value of securities held in dematerialised form through the depository. The company also reported new highs in the five-quarter series for the number of issuers and International Securities Identification Numbers, or ISINs. These indicators show that CDSL’s infrastructure is being used by a growing account base and a wider set of listed and issued securities.

The company’s market share and account additions are important because depositories form a core part of market infrastructure. They hold securities in electronic form and support settlement, corporate actions and account-related services. Growth in account numbers can expand the underlying base for depository services, although financial outcomes can also be affected by capital-market activity and the mix of services used during a period.

What do the first-half FY27 figures show?

CDSL reported standalone total income of ₹685.21 crore for the first half of FY27, up 13.8% year-on-year. Standalone net profit for the six-month period increased 10.1% to ₹307.79 crore. The first-half figures provide a broader view beyond the September quarter and show that income and profit remained above the comparable prior-year period.

The Q2 performance was stronger in percentage terms than the first-half growth figures, supported by the reported market conditions in the quarter. However, the company did not provide a forward earnings target in the supplied material. Investors therefore have reported financial data, account growth and assets under custody as current operating indicators, rather than a formal earnings outlook.

Why do CDSL's results matter to investors and the market?

CDSL’s results offer an operating read-through on retail participation, new issuances and the use of market infrastructure in India. The company serves as a depository rather than a listed-company issuer or broker, so its reported account base and custody value reflect the scale of securities held through its systems. The increase in demat accounts and assets under custody came alongside strong primary-market activity cited by management.

For investors, the key reported financial indicators were the 28.1% increase in standalone profit, 23.7% growth in consolidated revenue and 253-basis-point expansion in consolidated EBITDA margin. These figures show improved quarterly profitability, but they do not establish a future growth rate. Market participation, issuance activity and the pace of new account additions remain relevant to the operating environment described by the company.

Conclusion

Central Depository Services (India) Limited delivered higher Q2 FY27 income, EBITDA and profit, with standalone net profit reaching ₹163.34 crore and consolidated net profit reaching ₹173.30 crore. Its account base of more than 19 crore and share of more than 80% of India’s demat accounts underline the company’s large role in the domestic securities-market infrastructure.

The next reported reference point will be CDSL’s subsequent quarterly disclosure, which can show whether the pace of account additions, assets under custody and primary-market activity continues. Investors can also monitor the company’s updates on Demat 2.0, new product launches and group-company developments that were cited among the presentation highlights.