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CDSL reported a robust increase in Demat accounts, adding over 56 lakh new accounts in Q1 FY26, bringing its total to 15.86 crore and maintaining a dominant 79% market share as of June 30, 2025. The average daily turnover on BSE & NSE also saw a 15% jump from the last quarter, reaching INR 1.16 lakh crores. The company highlighted its contribution to investor education through new initiatives like the MyEasi app feature for proxy advisory recommendations and a new Investor Protection Fund awareness platform available in 11 languages.

For Q1 FY26, CDSL's consolidated total income grew to INR 295 crores from INR 287 crores in the previous corresponding quarter, a 2.79% YoY increase. However, consolidated net profit declined to INR 102 crores from INR 134 crores, a 23.88% YoY decrease. In contrast, standalone performance was strong, with total income rising to INR 312 crores from INR 221 crores (41.18% YoY growth), and net profit increasing to INR 152 crores from INR 105 crores (44.76% YoY growth) year-over-year. The subsidiary, CDSL Ventures Limited, saw its total income decrease to INR 43.06 crores from INR 64.37 crores, with profit after tax falling to INR 12.71 crores from INR 28.55 crores.

KYC revenue, which constitutes about 13% of total console revenue, experienced a decline primarily due to prevailing market conditions leading to fewer account openings and KYC fetches, with creation being 85% and fetch 15%. Annual issuer charges saw a sharp jump, mainly driven by an increase in folios for existing listed companies, with new issuances contributing as they occur. The unlisted segment generated INR 6.39 crores this quarter, with INR 5.23 crores being one-time^📎 application processing fees, indicating some volatility in this newer revenue stream.

The company reported a sharp rise in employee expenses, attributed to growth in size, regulatory requirements across critical functions (IT, risk, business), and the reflection of year-end performance appraisal variable payouts in this quarter. CDSL emphasized its strategic focus on building a long-term resilient infrastructure through continuous investment in technology, including new platforms and enhancing efficiency, rather than viewing technology spend as a start-stop expense. This approach aims to ensure the company has the right infrastructure and people to handle future growth and maintain sophistication.

CDSL admitted 3,486 companies in the unlisted space this quarter, with the total outstanding number exceeding 20,000. Revenue from this segment is dependent on companies undertaking transactions. In the insurance repository business, CDSL Ventures has crossed 18 lakh cumulative policies and 20 lakh e-insurance accounts. The integration with LIC is currently in progress, with management expecting it to happen soon and aiming to increase market share from a large pool of untapped accounts through online account opening.

Management addressed concerns regarding the compression of consolidated EBITDA margins, which fell from approximately 60% in the previous year to around 50%. Nehal Vora clarified that CDSL does not target a specific EBITDA margin, high or low, but rather focuses on providing the right platform and value proposition to the market and ecosystem. He stated that the EBITDA margin is considered a byproduct of these long-term strategic investments and operational efficiencies, reflecting the company's intent to ensure value for all stakeholders.