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CDSL reported a consolidated total income of INR341 crores for Q2 FY26, a 5.01% decline from INR359 crores in Q2 FY25. Consolidated net profit also decreased by 13.58% to INR140 crores from INR162 crores YoY. On a standalone basis, Q2 FY26 total income was INR290 crores (down 10.49% YoY) and net profit was INR128 crores (down 25.15% YoY). Management noted that the previous year's profits included significant dividend contributions from subsidiaries (INR47.5 crores in Sep 2024 quarter and INR62 crores in Jun 2025 quarter), which were absent this year, making current year's core operational profit relatively stronger.

CDSL continued its strong growth in demat accounts, adding over 65 lakh new accounts in Q2 FY26. This brought the total number of demat accounts to 16.5 crore, with CDSL maintaining an 80% market share. While the incremental market share for demat account additions saw a decline from 93% to 82%, management emphasized focusing on absolute growth and a long-term perspective rather than relative percentages.

CDSL Ventures Limited (CVL) experienced a significant decline in its H1 FY26 performance. Total income for H1 FY26 was INR92.84 crores, down 35.69% from INR144.41 crores in H1 FY25. Profit After Tax (PAT) for CVL also decreased substantially by 59.25% to INR27.09 crores from INR66.48 crores in the previous year.

Annual issuer charges are typically raised in the first quarter of the financial year based on admissions up to March 31st, as per SEBI circulars. In Q2 FY26, CDSL admitted 3,593 unlisted companies, contributing to the annual issuer charge income. The unlisted market share currently stands at 30% to 32%. The ISIN system for unlisted securities is currently under testing between depositories, with management hopeful for a level playing field once it goes live.

CDSL continues to prioritize investments in technology and human resources, viewing them as critical for business growth and creating value propositions for new market players. The company clarified a reclassification in its KYC income reporting, now including all KRA-related income (like eSign, eKYC/CKYC, GSP services) under this category, rather than just online data charges. Management stated that they have not seen any material impact from new competitors like KFintech in the KYC segment.

In the Insurance Repository business, CDSL signed up two new customers in the current half-year. The integration of LIC is expected to go live in November, which is anticipated to boost numbers. Despite a general decrease in policies issued by IRDA, CDSL's Insurance Repository business showed a 30% growth YoY. Future growth is expected to come from the online portal and the broking channel, in addition to existing insurance company partnerships.

CDSL launched Nomination Phase 2, an enhancement designed to simplify and strengthen the nomination process for investors, aligning with its commitment to investor protection. The company actively participated in the World Investor Week and the SEBI vs SCAM campaign, promoting financial literacy and awareness about fraud prevention, emphasizing that an informed investor is a protected investor.