The shares of Central Depository Services (India) (CDSL) tumbled 4% to intraday low of Rs 1,549 today as the company’s Q1FY26 earnings disappointed the Street. But that is not all, the counter is also reacting to the IPO buzz surrounding its direct rival NSDL which is set to open its public issue on July 30.

Let’s take a look at everything investors need to track-

CDSL’s net profit see a sharp drop – Second quarter in a row

CDSL posted a 23.6% year-on-year (YoY) decline in consolidated net profit, which fell to Rs 102.4 crore in the April-June 2025 quarter. This marks the second consecutive quarter of falling profits.

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Revenue growth stagnates despite stable operations

While profits took a hit, revenue from operations grew just 0.6% YoY to Rs 259 crore in Q1 FY26, compared to Rs 257.4 crore a year ago. The muted growth suggests that while business volumes may be intact, cost pressures are eroding profitability.

Rising expenses weigh heavily on margins

One of the key reasons for the profit decline was the rise in operating expenses, which directly hit the company’s EBITDA and margins. EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) fell by 15.1% YoY to Rs 130.6 crore in Q1 FY26 from Rs 154.4 crore a year ago. EBITDA margins contracted sharply to 50.4% from 60% in Q1 FY25.

NSDL’s upcoming IPO puts CDSL in the spotlight

Adding to the pressure, investor focus shifted to CDSL’s only rival – NSDL which has now announced the opening date for its much-anticipated IPO.

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Both CDSL and NSDL are the only two licensed depositories in India, holding a near-duopoly in the capital market infrastructure space. With NSDL heading to the public markets, it could grab a fresh set of investors and market attention.

CDSL share performance

CDSL’s stock performance over the past five trading sessions has declined by 5.5%, and it is down 8% over the past month. However, looking at a broader horizon, the stock has gained 20% in the last six months and is up 2% on a year-on-year basis. Despite this, the stock has slipped nearly 11% so far in 2025. As of now, the company holds a market capitalisation of Rs 33,750 crore, with its 52-week high at Rs 1,989.80 and a 52-week low of Rs 1,047.45.