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Informist, Thursday, Jul. 30, 2026

By Vidhi Thacker

MUMBAI – Central Depository Services (India) Ltd. is expected to report only a marginal growth in its June quarter net profit, driven by rising transaction revenue and better cash market volumes, brokerages tracking the company said. The company's revenues in the June quarter are likely to due to a rise in annual issuer charges, brokerages said.

The depository is expected to report a net profit of around INR 1.1 billion for the June quarter, up 4% on year and 33% sequentially, according to the average of estimates from five brokerages. The highest estimate for the net profit of the company is INR 1.1 billion from JM Financial Institutional Securities Pvt. Ltd. and the lowest is INR 991 million from 360 ONE Capital Market Pvt. Ltd.

Central Depository Services is expected to report revenue of around INR 2.8 billion for the June quarter, up 10% on year and 9% sequentially, according to the estimates. The highest estimate for the company's revenue is INR 2.9 billion from JM Financial and the lowest is INR 2.7 million from Nuvama Wealth Management Ltd.

Issuer charges are expected to rise due to a strong IPO market in financial year 2025-26 (Apr-Mar), leading to robust folio additions. This, coupled with a rise in transaction revenue due to higher cash market volumes is expected to improve earnings, Motilal Oswal said. Other income is also expected to improve during the quarter due to favourable market conditions, the brokerage added. However, Nuvama said a weak IPO market in the June quarter is expected to drag the company's earnings. Nevertheless, annual issuer charges – which reset at the start of every financial year – are still expected to be the main revenue driver this quarter, the brokerage added.

The secondary market activity improved during the quarter with high delivery and retail average daily trading volumes, Nuvama said.  This is expected to partly offset the drag caused by the weak primary market. The company's overall net demat account additions for the June quarter declined to 5.80 million from 7.38 million quarter ago, according to Equirus Securities Pvt. Ltd. The market share of the depository in incremental demat account additions during the quarter fell to 82.4% from 86% a quarter ago, the brokerage added. 

Primary market activity and demat account openings were also slow during the quarter, with a 21.4% fall on quarter in per month account openings, Nuvama said.

Central Depository's earnings before interest, tax, depreciation, and amortisation margin is expected to increase sequentially due to a growth in revenue, Motilal Oswal said. The company will detail its June quarter earnings Saturday. Investors will monitor the impact of lower market volumes and increased costs.

Central Depository Services is a depository that provides services to all market participants including exchanges, clearing corporations, depository participants, issuers, and investors.

Thursday, shares of the company closed at INR 1,336.40 on the National Stock Exchange, down 1% from Wednesday. The stock is up 9% since the company reported its March quarter earnings on May 2.

Out of seven brokerage reports on the company available with Informist, three have a "buy" recommendation on the stock, two have a "hold" recommendation, and two have a "sell" recommendation. The average target price for the "buy" recommendations is INR 1,429, which is 7% higher than the closing price Thursday.

Following are the Apr-Jun earnings estimates for Central Depository from the five brokerages in a descending order of net profit, in INR million:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Pankaj Aher

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