Central Depository Services (India) Ltd (CDSL) Q1 FY27 Results Analysis: PAT Jumps 14.8%, Margin Expands QoQ

Central Depository Services (India) Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 292.76 Cr (+13.10% YoY) and PAT growth of +14.80% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

CDSL delivered a clean double-digit quarter with 13.1% revenue growth and 14.8% PAT growth, driven by depository segment recovery. Sequential operating leverage is visible as margin expanded 2.91pp QoQ and cost-to-income improved. However, the Data Entry storage segment weakened QoQ and the operating margin still trails last year's level by 4pp, while the SEBI fine adds a post-quarter overhang.

Key Investment Insights

Key Positives

• Consolidated revenue grew 13.1% YoY to Rs.292.76 cr, with depository segment revenue up 16.2% QoQ.
• PAT to owners grew 14.8% YoY to Rs.117.51 cr, with no one-time items.
• Segment operating margin expanded 2.91pp QoQ to 40.54%, and cost-to-income ratio improved 2.69pp QoQ to 52.90%.
• Net worth increased 5.8% QoQ to Rs.2,118.08 cr, with treasury assets growing Rs.390 cr QoQ.
• Subsidiary drag narrowed to Rs.26.94 cr from Rs.49.65 cr a year ago.

Risk Factors

• Data Entry & Storage segment revenue declined 9.7% QoQ and margin compressed from 32.34% to 23.39% QoQ.
• Standalone PAT declined 5% YoY due to other income base effect, though operating business grew.
• YoY operating margin is 3.99pp below Q1FY26 due to absorbed cost layers from FY26 technology build-out.
• Post-quarter SEBI imposed a Rs.1 cr fine for cybersecurity lapses (Q2 event, not in Q1).