The Central Depository Services (CDSL), India’s largest securities depository, is having a rough ride in 2025. The stock has plunged 35% year-to-date (YTD), leaving investors worried about what’s driving this sharp fall. Despite playing a key role in the capital markets by enabling the holding and transfer of securities in dematerialised form, CDSL’s share price has been on a downward spiral due to multiple concerns.
Let’s take a look into the four key reasons why the stock is struggling.
Disappointing Q3 results: Growth not enough
CDSL reported a 21.5% YoY increase in profit after tax (PAT) to Rs 130 crore for Q3 FY25. Total income also jumped 26.3% YoY to Rs 298 crore.
However, the quarter-on-quarter (QoQ) picture tells a different story. On a standalone basis, net profit fell 38.6% QoQ, and total income saw a 27.47% decline from Q2 FY25. This sequential dip in earnings raised investor concerns, triggering a sell-off.
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One of the biggest red flags for CDSL is the slowdown in new demat account openings.
In February 2025, CDSL, along with its competitor NSDL, registered 19.04 crore demat accounts, a marginal increase from 18.81 crore in January. However, the pace of new additions has been sluggish. Only 22.6 lakh new accounts were added, a 20% drop from January and a 48% decline from February 2024.
Volatile stock performance
CDSL’s share price has been on a rollercoaster ride. In the last five trading days, it dipped 0.5%, while in the past one month, it saw a modest 2.5% gain. However, the broader trend paints a bearish picture.
Over the past six months, the stock has dropped 19%, while in the last year, it managed to gain 40%.
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Yet, the 35% YTD decline in 2025 has overshadowed its long-term gains, raising some concerns.
How far is CDSL from its 52-week high and low?
At its current trading price of Rs 1,183, CDSL is 40.5% below its 52-week high of Rs 1,989.80 and 41.2% above its 52-week low of Rs 837.50.
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