Central Depository Services reports 24% Q2 profit growth

Central Depository Services (India) Limited reported Q2 FY27 consolidated net profit of Rs 173.9 crore, up 24% year-on-year, while total income rose 22% to Rs 417 crore. The September-quarter result reflects higher revenue, improved operating profitability and continued growth in demat accounts and assets under custody.

What did Central Depository Services report for Q2 FY27?

Central Depository Services reported consolidated net profit of about Rs 173.9 crore for the quarter ended September 30, 2026, compared with Rs 140.2 crore in the corresponding quarter of the previous year. Consolidated total income rose to Rs 417 crore from Rs 341 crore a year earlier.

On a sequential basis, net profit rose 47% from about Rs 118 crore in the June 2026 quarter. Total income increased 22% from around Rs 341 crore in Q1 FY27. The numbers show that profit growth outpaced income growth on a quarter-on-quarter basis.

The company declared its Q2 FY27 results on October 31, 2026. Central Depository Services operates as a market infrastructure institution and provides depository-related services, making demat-account growth and the value of securities held in its system important operating indicators.

How did Central Depository Services' operating performance improve?

Central Depository Services' revenue from operations increased 23.7% year-on-year to Rs 394.48 crore in Q2 FY27 from Rs 318.89 crore in Q2 FY26. Operating profit rose faster, by 28.6%, to Rs 228.48 crore from Rs 177.62 crore.

The reported quarterly data showed EBITDA of Rs 251.30 crore, while the results coverage also described EBITDA of about Rs 229 crore under the operating-performance presentation. EBITDA margin was reported at 58%, compared with 56% in the year-ago quarter. The margin improvement indicates that operating profitability increased alongside revenue.

For the first half of FY27, consolidated net profit grew 20% to Rs 291 crore from Rs 242 crore in the year-earlier period. Consolidated total income for the six months rose 19% to Rs 758 crore. The half-year figures include the September-quarter performance as well as the June-quarter results.

On a standalone basis, Central Depository Services reported Q2 FY27 total income of Rs 359 crore, up 24% year-on-year, and net profit of Rs 163 crore, up 28%. For the six months ended September, standalone profit rose 10% to Rs 308 crore and income increased 14% to Rs 685 crore.

What drove demat account growth at Central Depository Services?

Central Depository Services added around 75 lakh demat accounts during the September quarter, taking its assets under custody beyond Rs 89 lakh crore. The company's demat account base was around 17% higher year-on-year at the end of the quarter, according to Managing Director and Chief Executive Officer Nehal Vora.

Demat accounts are necessary for investors to hold securities electronically. Growth in accounts therefore expands the number of customers using depository infrastructure, although the quarterly results do not break down the specific revenue contribution from each new account or service line.

Assets under custody represent the value of securities held in the depository system. The crossing of the Rs 89 lakh crore level reflects the scale of securities held with Central Depository Services at the end of the quarter. It also provides context for the company's role in India's expanding retail-participation and securities-market infrastructure.

Why do the Q2 numbers matter for investors and the market?

The Q2 FY27 figures matter because Central Depository Services recorded double-digit growth in revenue, profit and operating profit while also adding 75 lakh demat accounts. Revenue from operations of Rs 394.48 crore was higher than both the Rs 292.76 crore reported in Q1 FY27 and the Rs 318.89 crore reported in Q2 FY26.

The sequential increase was also substantial. Net sales turnover rose 34.8% from Rs 292.76 crore in Q1 FY27 to Rs 394.48 crore in Q2 FY27, while reported PAT increased from Rs 117.42 crore to Rs 173.69 crore. EPS increased to Rs 8.32 from Rs 5.62 in the preceding quarter.

For investors, the data links earnings performance with measures of depository usage, including account additions and assets under custody. For market participants, the account-growth number indicates continued addition of investors to the securities holding system. The disclosed results do not provide a forecast for future account additions, income or profitability.

What is the financial context behind the September-quarter result?

Central Depository Services had reported total income of Rs 268.38 crore and PAT of Rs 81 crore in the March 2026 quarter, followed by total income of Rs 340.50 crore and PAT of Rs 117.42 crore in the June 2026 quarter. The September-quarter results extended this increase, with total income reaching Rs 417.30 crore and PAT reaching Rs 173.69 crore.

The improvement in quarterly earnings was accompanied by a higher operating-profit figure. Operating profit increased from Rs 116.75 crore in March 2026 and Rs 137.90 crore in June 2026 to Rs 228.48 crore in September 2026. These reported trends provide the immediate financial context for the Q2 outcome.

The results also compare favourably with the year-earlier September quarter, when total income was Rs 341.37 crore, operating profit was Rs 177.62 crore and reported PAT was Rs 141.24 crore. Central Depository Services' disclosed figures show year-on-year growth across these main financial measures.

Conclusion

Central Depository Services delivered a stronger Q2 FY27, reporting consolidated net profit of about Rs 173.9 crore and total income of Rs 417 crore. Revenue growth, a reported improvement in EBITDA margin, 75 lakh new demat accounts and assets under custody above Rs 89 lakh crore were the main disclosed indicators accompanying the result.

The next disclosed reference point will be the company's subsequent quarterly financial update, which will show whether income growth, operating margins, demat-account additions and assets under custody continue from the September-quarter levels. Investors can also track the relationship between account-base expansion and the company's reported revenue and profit trends.