CDSL shares fall over 5% today post Q4FY25 earnings: Should investors buy, sell or hold?

Shares of the depository major Central Depository Services Ltd. (CDSL) fell over 5 per cent in Monday’s trade (May 5, 2025) after the company’s weak March quarter results. Last at around 1:26 pm, NSE-listed CDSL shares after hitting the day’s low of Rs 1,260, traded with a cut of 2.92 per cent or Rs 38.8 at Rs 1,289.4 per share.

In the last one month, the stock has gained nearly 9 per cent considering its close at Rs 1,221.45 per share on April 2, 2025.

CDSL Q4FY25 Results

The depository major largely reported in-line numbers for the March quarter. Consolidated revenue during the review quarter declined 7 per cent year-on-year to Rs 225 crore as against Rs 241 crore in the same quarter of the previous year. Profit after tax or net profit also fell 23 per cent on-year to Rs 100 crore in the review quarter as against Rs 129 crore in the year-ago period.

Meanwhile, on the operational front, EBITDA or earnings before interest, taxes, depreciation and ammortisation also tumbled 26 per cent year-over-year to Rs 110 crore. In Q4FY24, EBITDA stood at Rs 148 crore. Margin took a sharp hit and declined by 1200 basis points to 49 per cent as against 61 per cent in the corresponding period of the previous fiscal year.

Should you buy, hold or sell CDSL shares?

CDSL total income for Q4FY25 quarter stood at Rs 256 crore as against Rs 267 crore in Q4FY24, recording a 4 per cent decline. Meanwhile, sequentially, it declined 14 per cent from Rs 298 crore posted in the Q3FY25.

The company’s profitability suffered sequentially too and came in lower by 23 per cent as against Rs 130 crore posted in the Q3FY25.

Nitin Jain, Sr. Research Analyst at Bonanza Group pointed out that the company’s net account opening declined by 30 per cent in Q4FY25 when compared to Q3FY25. The figure for Q4Y25 stood at 64 lakh, compared to 92 lakh in Q3FY25. Demat custody also fell Rs 71 lakh crore from Rs 75 lakh crore during the December quarter.

The factors impacting the stock are weak earnings, slowing demat account opening and market volatility. We would recommend ‘Hold’ for now, he added.