If you’re exploring the Indian stock market for long-term opportunities, Central Depository Services (India) Limited (CDSL) just dropped its Q4 FY25 results on May 3, 2025, and it’s got some juicy details. As India’s largest depository, CDSL handles millions of demat accounts, making it a key player in the financial world.
But with a 22% profit dip this quarter, is it still a good bet for you, especially if you’re aged 25-60 and looking to invest for the long haul?
As a stock market analyst with over a decade of experience, I’m here to break it down in simple terms, like we’re chatting over coffee. Let’s dive in!
What Are Quarterly Results?
Think of quarterly results as a company’s report card, released every three months. They show how much money the company made, spent, and what’s left as profit.
For CDSL, these results tell us about its financial health, dividend plans, and growth prospects—key factors for long-term investors like you.
Since CDSL manages demat accounts (where your shares are stored digitally), its performance reflects the pulse of India’s stock market.
CDSL’s Q4 FY25 Performance: The Numbers
CDSL announced its Q4 FY25 results (January-March 2025) on May 3, 2025. Here’s a quick look at the key figures:
| Metric | Q4 FY25 | Q4 FY24 | Change |
|---|---|---|---|
| Net Profit | Rs 100.39 crore | Rs 129.4 crore | Down 22% |
| Revenue | Rs 224.45 crore | Rs 241 crore | Down 6.7% |
| EBITDA | Rs 109 crore | Rs 148 crore | Down 26.1% |
| EBITDA Margin | 48.7% | – | – |
| Dividend | Rs 12.50 per share | – | Recommended for FY25 |
Profit Dip
CDSL’s net profit fell to Rs 100.39 crore, a 22% drop from Rs 129.4 crore in Q4 FY24. This means the company earned less after paying all its bills, possibly due to higher costs or lower income from some services.
Revenue Decline
Revenue from operations dropped 6.7% to Rs 224.45 crore from Rs 241 crore. This includes money from depository activities (Rs 181.53 crore, slightly down from Rs 185.08 crore), data entry and storage (Rs 42.51 crore, down from Rs 55.14 crore), and repository services (Rs 0.69 crore, up from Rs 0.67 crore).
EBITDA
Earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 26.1% to Rs 109 crore, with a margin of 48.7%. This shows a squeeze on profitability, likely due to operational challenges.
Full-Year Strength
For the entire FY25, CDSL reported a profit of Rs 526 crore, with a 32% growth in income, highlighting a strong annual performance despite the Q4 hiccup.
CDSL also hit a milestone, managing 15.29 crore demat accounts by March 31, 2025, reinforcing its dominance in India’s depository market.
Dividend: A Sweet Deal for Investors
CDSL’s Board recommended a final dividend of Rs 12.50 per equity share for FY25, subject to approval at the Annual General Meeting (AGM). The record date for this dividend is yet to be announced, but if you own CDSL shares by then, you’ll get Rs 12.50 for each share. For example, 100 shares mean Rs 1,250 in your pocket!
Why this matters
Dividends are like a bonus for shareholders, providing income without selling your shares. For long-term investors, this is a big plus, especially if you’re looking for steady returns alongside potential stock price growth.
How Will This Affect CDSL’s Stock Price?
On May 2, 2025, CDSL’s stock closed at Rs 1,324.70, up 27% over the past year and a whopping 105% over three years, with a market cap of Rs 27,686 crore (ET Now News). Since the results came out on a Saturday (May 3), when markets were closed, we’ll see the real reaction on Monday, May 5, 2025.
What to expect:
- The 22% profit drop and 6.7% revenue decline might spook some investors, potentially pushing the stock price down initially.
- But the Rs 12.50 dividend and strong full-year profit of Rs 526 crore could attract buyers, especially those focused on long-term gains. The 32% income growth for FY25 is a sign CDSL is still growing.
- The stock’s solid track record (27% up in a year) and CDSL’s leadership in demat accounts (15.29 crore) could keep it stable or even lift it if investors see the Q4 dip as temporary.
For beginners, don’t stress about short-term price swings. Long-term investing is about the big picture, and CDSL’s fundamentals look promising.
Why CDSL Is a Long-Term Winner
If you’re an Indian investor aged 25-60, here’s why CDSL might fit your portfolio:
- Market Leader: With 15.29 crore demat accounts, CDSL is India’s top depository, benefiting from the growing number of retail investors in the stock market.
- Dividend Income: The Rs 12.50 per share dividend offers a steady income stream, perfect for those wanting returns without selling shares.
- Growth Potential: The 32% income growth in FY25 shows CDSL is expanding, likely driven by more demat accounts and new services.
- Stable Business: Depositories like CDSL are less volatile than other sectors, as they earn steady fees from transactions and account maintenance.
But watch out: The Q4 profit and revenue drop suggests challenges, like lower income from data storage or higher costs. Make sure future quarters show improvement to confirm CDSL’s growth story.
Tips for New Investors
- Track the Stock: Check CDSL’s price on May 5, 2025, on apps like Moneycontrol or Zerodha to see market sentiment.
- Focus on the Long Term: Don’t worry about daily price changes. CDSL’s dividends and market position make it a solid long-term pick.
- Stay Updated: Visit CDSL’s investor relations page (CDSL Official Website) for detailed reports or read news on NDTV Profit.
- Start Small: If you’re new, buy a few shares to get comfortable, then add more if you believe in CDSL’s future.
Wrapping Up
CDSL’s Q4 FY25 results show a profit dip, but the Rs 12.50 dividend and strong full-year growth keep it attractive for long-term investors.
As India’s largest depository, with 15.29 crore demat accounts and a 32% income rise in FY25, CDSL is a key player in the stock market. Watch the stock price on May 5, 2025, and keep tabs on future results to ensure the Q4 dip is just a bump in the road. Happy investing!
Roshan Sharma – Founder of StocksForBeginners.in
I’m Roshan Sharma, a stock market trader with 5+ years of experience. At StocksForBeginners.in, I provide expert fundamental analysis of Indian companies to help long-term investors make informed decisions. My mission is to simplify investing for beginners and share insights from my experience to guide others toward financial growth.