CDSL Share Price | CDSL shares crashes 10% after reporting disappointing Q3 results

CDSL Share Price | On January 27, 2025, CDSL share price closed at Rs 1,358.35 per share, down 9.45% from its previous close price of Rs 1,500.25. The market capitalization now stands at around Rs 28,744 crore.

Robust annual growth but quarter-on-quarter challenges persist

CDSL recorded revenue of Rs 278 crore in Q3 FY25, reflecting a 13.66% quarter-on-quarter decline from Rs 322 crore in Q2 FY25 but an impressive 29.91% year-on-year growth from Rs 214 crore in Q3 FY24. The company’s profit stood at Rs 130 crore, reflecting a 19.75% quarter-on-quarter decline from Rs 162 crore, while showing a 21.50% year-on-year growth from Rs 107 crore.

Operating Margin and Long-Term Growth Metrics

The Company’s operating profit margin (OPM) declined to 58% from 61% year-on-year. Despite these short-term challenges, CDSL demonstrated strong fundamentals with trailing twelve-month (TTM) sales growth of 58%, profit growth of 57%, and an impressive 5-year compounded annual growth rate (CAGR) of 70%.

Milestone: Over 14.65 Crore Demat Accounts Registered

As of December 31, 2024, CDSL became the first depository to register over 14.65 crore Demat accounts, with around 92 lakh new accounts opened during Q3 FY25. This milestone reflects the growing adoption of digital financial services in India.

India’s Depository Industry: Rapid Growth Path

The Indian depository industry recorded a remarkable 32% growth in demat accounts from FY23 to FY24, reaching a total of 15.14 crore accounts. CDSL with a 76% market share continues to lead this surge, reflecting growing investor confidence and participation.

Competitive Landscape and Market Position

CDSL’s primary competitor, National Securities Depository Limited (NSDL), also plays a significant role in the depository ecosystem. CDSL has a price-to-earnings (P/E) ratio of 56.85, reflecting its strong market position and investor confidence.

Driven Financial Inclusion with Robust Infrastructure

This surge in demat accounts reflects a broader trend towards financial inclusion, driven by simplified processes and digital innovation. CDSL CDSL’s advanced infrastructure and stringent security practices underline its leadership in the industry, with assets worth Rs 64 lakh crore as of March 2024.

Conclusion – CDSL Share Price

CDSL’s mixed financial performance in Q3 FY25 reflects both challenges and opportunities. With its significant market share, strong long-term growth, and focus on digital innovation, the company remains a key player in shaping India’s investment landscape.

Also Read: ICICI Bank Q3 Results