Q1 2027 Central Depository Services Ltd Earnings Call

August 3, 2026

Speaker #2: Ladies and gentlemen, good day, and welcome to the CDSL Q1 FY27 conference call, hosted by HDFC Securities. As a reminder to all participants, lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: Ladies and gentlemen, good day and welcome to the CDSL Q1 FY27 conference call hosted by HDFC Securities. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. Ladies and gentlemen, please note that CDSL does not provide specific revenue or earnings guidance. Anything said on this call which reflects CDSL's outlook for the future, or which could be constituted as forward-looking statements must be reviewed in conjunction with the risks that the company faces. I would now like to hand the conference over to Mr. Amit Chandra from HDFC Securities. Thank you, over to you, Mr. Chandra.

Speaker #2: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touchscreen phone. Please note that this conference is being recorded.

Speaker #2: Ladies and gentlemen, please note that CDSL does not provide specific revenue or earnings guidance. Anything said on this call which reflects CDSL's outlook for the future, or which could be construed as forward-looking statements, must be reviewed in conjunction with the risks that the company faces.

Speaker #2: I would now like to hand the conference over to Mr. Amit Chandra from HDFC Securities. Thank you, and over to you, Mr. Chandra.

Speaker #3: Good afternoon, everyone. On behalf of HDFC Securities, we welcome you all to the CDSL Q1 FY27 earnings call. Today, we have with us the management team of CDSL, represented by Mr. Nehal Vora, MD and CEO.

Amit Chandra: Good afternoon, everyone. On behalf of HDFC Securities, we welcome you all to the CDSL Q1 FY27 earnings call. Today, we have with us the management team of CDSL, represented by Mr. Nehal Vora, MD and CEO; Mr. Girish Amesara, CFO; and other senior leaders from the management team. We will start the call with a brief overview of the quarter by Mr. Nehal Vora, then we'll open up the floor for the question-and-answer session. Thank you, over to you, Nehal Sir.

Speaker #3: Mr. Girish Sameswara, CFO, and other senior leaders from the management team. We will start the call with a brief overview of this quarter by Mr. Nehal Vora, and then we will open up the floor for the question-and-answer session.

Speaker #3: Thank you, and over to you, Nehal sir.

Speaker #4: So, first of all, thank you, Amit. A very, very good afternoon, and welcome everyone. I hope each of you and your loved ones are safe and healthy.

Nehal Vora: First of all, thank you, Amit. A very good afternoon and welcome everyone. I hope each of you and your loved ones are safe and healthy. Thank you for joining us today to discuss CDSL's financial results for the Q1 of FY26-27. A detailed investor presentation has been uploaded on our website, and I hope you've had an opportunity to see it. I'm joined today by the leadership team of the CDSL group. Let me begin with a brief overview of the quarter before the CFO takes us through the financial performance in greater detail. From an industry perspective, the activity levels in the securities market remain healthy. CDSL has opened about 58 lakh new Demat accounts during the quarter, taking the total Demat accounts on the CDSL platform to 18.59 crore as on 30 June 2026, and maintaining a market share of approximately 80%.

Speaker #4: Thank you for joining us today to discuss CDSL's financial results for the first quarter of financial year 2026-27. A detailed investor presentation has been uploaded on our website.

Speaker #4: And I hope you've had an opportunity to see it. I'm joined today by the leadership team of the CDSL Group. Let me begin with a brief overview of the quarter.

Speaker #4: Before the CFO takes us through the financial performance in greater detail, from an industry perspective, the activity levels in the securities market remain healthy.

Speaker #4: CDSL has opened about 58 lakh new Demat accounts during the quarter, taking the total Demat accounts on the CDSL platform to 18.59 crore as of 30 June 2026.

Speaker #4: And maintaining a market share of approximately 80%. The quarter also saw a few important developments for the organization. During the quarter, our governing board and our shareholders have approved the appointment of Shri Amit Mahajan as Executive Director, Vertical One, and Shrimati Naina Oblekar as Executive Director for Vertical Two.

Nehal Vora: The quarter also saw a few important developments for the organization. During the quarter, our governing board and our shareholders have approved the appointment of Sri Amit Mahajan as Executive Director, Vertical One, and Srimati Nayana Ovalekar as Executive Director for Vertical Two. The shareholders approval happened after SEBI had given these approvals to CDSL. These appointments are expected to further strengthen the leadership across our operations, technology, regulatory compliance, risk management, and investor-facing functions. We were also honored to receive several recognitions during the quarter, including being named as the most innovative FinTech company in Asia Pacific by Global Finance magazine, and also receiving the Innovation and Settlement Efficiency award at the Global Custodian Leaders in Custody Asia awards. These recognitions reflect the efforts of our employees, depository participants, and the wider ecosystem stakeholders.

Speaker #4: These have—the shareholders' approval happened after SEBI had given its approval to CDSL. These appointments are expected to further strengthen the leadership across our operations, technology, regulatory, compliance, risk management, and investor-facing functions.

Speaker #4: We were also honored to receive several recognitions during the quarter, including being named the most innovative fintech company in Asia Pacific by Global Finance.

Speaker #4: Magazine, and also receiving the Innovation and Settlement Efficiency Award at the Global Custodian Leaders in Asia Custody Awards. These recognitions reflect the efforts of our employees, depository participants, and the wider ecosystem stakeholders.

Speaker #4: Coming to our financial performance, CDSL reported a standalone income of ₹370.3 crore and a standalone net profit of ₹144 crore for Q1 of FY 2026-27.

Nehal Vora: Coming to our financial performance, CDSL reported a standalone income of INR 327 crore and a standalone net profit of INR 144 crore for Q1 of FY26-27. On a consolidated basis, the total income stood at INR 341 crore and a net profit of INR 118 crore. CDSL has also made strategic investments in Sahamati Foundation, an RBI-recognized self-regulatory organization for the account aggregator ecosystem. As the India securities market continues to deepen, our focus remains unchanged, strengthening core infrastructure, improving service quality for our participants and issuers, supporting investors through awareness and education initiatives, and building capabilities for the future. We remain grateful to our regulators, SEBI, Ministry of Finance, and all other regulators, depository participants, issuers, investors, market intermediaries, shareholders, and employees for their continued support and trust. With that, I now hand it over to the CFO, Girish, to take us through the financial performance in greater detail.

Speaker #4: On a consolidated basis, the total income stood at ₹341 crore, and net profit at ₹118 crore. CDSL has also made strategic investments in various entities, including Samathi Foundation, and an RBI-recognized self-regulatory organization for the account aggregator ecosystem.

Speaker #4: As the India securities market continues to deepen, our focus remains unchanged: strengthening core infrastructure, improving service quality for our participants and issuers, supporting investors through awareness and education initiatives, and building capabilities for the future.

Speaker #4: We remain grateful to our regulators, SEBI and the Ministry of Finance, as well as all other regulators, depository participants, issuers, investors, market intermediaries, shareholders, and employees for their continued support and trust.

Speaker #4: With that, I now hand it over to the CFO, Girish, to take us through the financial performance in greater detail. Thank you, and Jai Hind.

Nehal Vora: Thank you, and Jai Hind.

Speaker #5: Thank you, Nehal. Good morning, everyone. I will start with standalone performance. For the June quarter 2026, total income was Rs 326.51 crore, as against Rs 312.36 crore for the same quarter in the previous year.

Girish Amesara: Thank you, Nehal. Good morning, everyone. I will start with standalone performance for the June quarter 2026. The total income is achieved at INR 326.51 crore as against INR 312.36 crore for the similar quarter during previous year. The standalone net profit for June 2026 quarter is achieved at INR 144 crore as against INR 152 crore for the similar quarter during the previous year. Please note that the other income in standalone financial results includes dividend received from subsidiary, which was at INR 39.50 crore in June 2026 quarter as compared to INR 62 crore in the similar quarter during the previous year. The same dividend is eliminated on consolidation as that is received from a subsidiary. On consolidated basis, the total income for June 2026 quarter is achieved at INR 340.50 crore as against INR 295.14 crore for the similar quarter in the previous year.

Speaker #5: The standalone net profit for the June 2026 quarter is achieved at ₹144 crore, as against ₹152 crore for the similar quarter during the previous year.

Speaker #5: Please note that the other income in standalone financial results includes dividend received from subsidiary, which was at ₹39.50 crore in the June 2026 quarter, as compared to ₹62 crore in the similar quarter during the previous year.

Speaker #5: The same dividend is eliminated on consolidation, as that is received from a subsidiary. Now, on a consolidated basis, the total income for the June 2026 quarter is ₹340.50 crore, as against ₹295.14 crore.

Speaker #5: For the similar quarter in the previous year, the consolidated net profit for the June 2026 quarter is achieved at ₹118 crore, as against ₹102 crore for the similar quarter in the previous year.

Girish Amesara: The consolidated net profit for June 2026 quarter is achieved at INR 118 crore as against INR 102 crore for the similar quarter in the previous year. With this, I will request Sunil Alvares to take us through CVL numbers. Thank you, and over to you, Sunil.

Speaker #5: With this, I will request Shri Sunil Alvarez to take us through serial numbers. Thank you, and over to you, Sunil.

Speaker #2: Good afternoon. During Q1 FY27, CVL reported revenue from operations of ₹45 crore, as compared to ₹36 crore during the same period last year.

Sunil Alvares: Good afternoon. During Q1 FY27, CDSL reported a revenue from operations of INR 45 crores as compared to INR 36 crores during the same period last year, reflecting a growth of INR 8 crores or 22%. The growth was largely driven by improvement in our other businesses and other digital service offerings. Total income for the quarter stood at INR 50 crores as against INR 43 crores in Q1 FY26, an increase of INR 7.6 crores or 18%. On the expenditure side, the total expenditure increased to INR 34.67 crores from INR 26.43 crores. That was up by INR 8.23 crores or 31%. As a result, the profit before tax stood at INR 15.68 crores compared to INR 16.61 crores, a decline of 4% or INR 62 lakhs. Profit after tax was at INR 12.11 crores as against INR 12.71 crores in the corresponding quarter of the previous year, which was a decline of INR 59 lakhs or 5%.

Speaker #2: Reflecting a growth of ₹8 crore, or 22%. The growth was largely driven by improvement in our other businesses and other digital service offerings.

Speaker #2: Total income for the quarter stood at ₹50 crores, as against ₹43 crores in Q1 FY26, an increase of ₹7.6 crores or 18%. On the expenditure side, total expenditure increased to ₹34.67 crores from ₹26.43 crores, up by ₹8.23 crores or 31%. As a result, the profit before tax stood at ₹15.68 crores, compared to ₹16.61 crores, a decline of 4% or ₹62 lakhs.

Speaker #2: Profit after tax was at ₹12.11 crore, as against ₹12.71 crore in the corresponding quarter of the previous year, which was a decline of ₹59 lakh. With that, I open the floor for questions and answers.

Sunil Alvares: With this, I will open the floor for the question and answers. Thank you.

Speaker #2: Thank you.

Speaker #3: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator: Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Amit Chandra with HDFC Securities. Please go ahead.

Speaker #3: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #3: Ladies and gentlemen, we will wait for a moment while the question queue assembles.

Speaker #5: Ladies and gentlemen, the first question.

Speaker #3: Comes from the line of Amit Chandra with HDFC Securities. Please go ahead.

Speaker #4: Yes, sir. Thanks for the opportunity. So my first question is on the annual issuer charges growth. Obviously, we have shown YoY growth of 12.3%.

Amit Chandra: Yeah, sir. Thanks for the opportunity. My first question is on the annual issuer charges growth. Obviously, we have shown a YoY growth of 12.3%, but seeing the IPOs that we have received, the IPOs that had come last year, the expectation of growth here was much better versus what we did last year in terms of YoY growth for the first quarter. Any reasons why this growth is lower? Also, if you can give the number of folios in this year versus last year, that would be helpful.

Speaker #4: But, you know, seeing the IPOs that we have received, you know, the IPOs that had come last year, you know, the expectation of growth here was much, like, better versus what we did last year.

Speaker #4: In terms of YOI growth for the first quarter. So any reasons, you know, why this growth is lower? And also, if you can give the, you know, like, number of folios in this year versus last year, that would be helpful.

Speaker #5: So, basically, Amit, it's a formula-driven charge, or issuer charges, and it's based on the folios which are actually there. And so, it is what it is in terms of what the numbers are, in terms of what the folios have been.

Nehal Vora: Basically, Amit, it's a formula-driven charges or issuer charges, it's based on the folios which are actually there. It is what it is in terms of what the numbers are, in terms of what the folios have been. I'll ask the CFO, Girish, to give us the numbers on the folios.

Speaker #5: I'll ask the CFO, Girish, to give us the numbers on the folios.

Speaker #3: So, Amit, the folio

Girish Amesara: Amit, the folio is INR 38.73 crores.

Speaker #5: is 38.73 crore, okay.

Amit Chandra: Okay. Sir, secondly on the KYC income. We had the pricing reset in this Q. Based on the basic reset maths, the impact would have been in the range of 20% only on pricing. The impact here is lower than that. Is it offset by volumes or there is some other things to read into it in terms of the pricing impact that we had in the KYC?

Speaker #4: And, you know, sir, secondly, on the, you know, KYC, you know, income, so we had the pricing reset in this quarter. So based on the, you know, basic the reset maths, the impact would have been in the range of 20%, only on pricing.

Speaker #4: But the impact here is lower than that. So, is it offset by volumes, or, you know, is there something else to read into it in terms of the pricing impact that we had in the KYC?

Speaker #5: I'll ask Sunil to answer this.

Nehal Vora: I'll ask Sunil to answer this.

Speaker #2: Yes, so Amit, there were two things that really offset that. One was the higher fetch volumes, and so the actual impact was lower—about 9%.

Sunil Alvares: Yes. Amit, there were two things which really offset that. One was the higher flat volume, the actual impact came was lower to about 9%. We also, when the charges were reduced by SEBI, they had allowed us to charge on the search API, which again gave us some revenue which reduced the overall effect. I hope that answers your question.

Speaker #2: And also, when the charges were reduced by SEBI, they had allowed us to charge on the search API, which again gave us some revenue, which reduced the overall effect.

Speaker #2: So, I hope that answers your question.

Speaker #4: Okay. And sir, you know, the last question from my side. In terms of technology expenses, obviously we have seen the technology expenses going up every quarter.

Amit Chandra: Okay. Sir, the last question from my side. In terms of technology expenses, obviously we have seen the technology expenses going up every quarter. In this quarter we have seen some kind of stability there. Is it fair to assume that most of the heavy lifting in terms of the technology spend is behind and from here we can see a steady state increase in technology expenses?

Speaker #4: But, you know, in this quarter we have seen some some kind of stability there. So is it fair to assume that, you know, the most of the heavy lifting in terms of the technology spend is behind, and from here we can see a steady state increase in technology expenses?

Speaker #5: So firstly, we don't give future statements, which look into the future—forward-looking statements. But as I have said in various investor calls, we are an infrastructure company.

Nehal Vora: Firstly, we don't give future statements which look into the future, forward-looking statements. As I had said in various investor calls, we are an infrastructure company. Technology and human resource are the two key components, which is in a way the raw material work in progress and finished good. Important thing is to ensure the value proposition continues to remain. Rather than seeing it as a quarter on quarter, you have to see in terms of the stakeholder interest growing, number of accounts growing, and that value proposition should remain intact. Whatever it takes to ensure that that value proposition would continue is really our effort and our intent in taking this forward. It will be difficult to comment whether the technology spend will grow or not grow in future. One is we don't give forward-looking statements.

Speaker #5: So, you know, technology and human resources are the two key components, which is, in a way, the raw material, work in progress, and finished goods.

Speaker #5: The important thing is to ensure the value proposition continues to remain. And rather than seeing it quarter-on-quarter, you have to see it in terms of stakeholder interest growing, the number of accounts growing, and that value proposition should remain intact.

Speaker #5: And whatever it takes to ensure that value proposition continues is really our effort and our intent in taking this forward. So, it will be difficult to comment on whether the technology spend will grow or not grow in the future.

Speaker #5: One is, we don't give forward-looking statements. But overall, in the scheme of things, it is what is required to be done to ensure that the infrastructure continues to remain contextual and value proposition-driven. You have to do whatever it takes for that.

Nehal Vora: Overall, in the overall scheme of things, it is what is required to be done to ensure that the infrastructure continues to remain contextual and value proposition driven. You have to do whatever it takes for that.

Speaker #4: Also, thanks for that. But, you know, I just wanted to understand that whatever we had in terms of our plan for technology spend, is it already done or, you know, I'm not asking for any future guidance, but as of now, have most of the advancements been done as per the regulatory requirement?

Amit Chandra: No, sir. Thanks for that. Just wanted to understand that whatever we had in terms of a plan for technology spend, is it already done or I'm not asking for a future guidance, but as of now, most of the advancements have been done as per the regulatory requirement?

Speaker #5: So, you see, the regulatory requirements keep on changing as per the needs of the market and what the needs are. Also, technology is changing rapidly.

Nehal Vora: The regulatory requirements keep on changing as per the needs of the market and what needs are there. Also, technology is also changing rapidly. The intent is that we have to be nimble as well as very active in ensuring that the best-in-class technology continues to remain active on the CDSL platform. That's been our intent. It's difficult to answer this question, whether it has reached or not reached, because the environment itself is changing so much. Based on that, we'll have to wait and observe how that will impact in the quarters to come.

Speaker #5: The intent is that we have to be nimble, as well as very, very active, in ensuring that best-in-class technology continues to remain active on the CDSL platform.

Speaker #5: And that's been our intent. So it's difficult to answer this question—whether it has reached or not reached—because the environment itself is changing so much.

Speaker #5: So, based on that, we'll have to wait and observe how that will impact the quarters to come.

Speaker #4: Okay, sir. Thank you, and all the best, sir.

Amit Chandra: Okay, sir. Thank you and all the best, sir.

Speaker #5: Thank you. Thank you.

Nehal Vora: Thank you.

Operator: The next question comes from the line of Hiral Pare with Dolat Capital. Please go ahead.

Speaker #3: The next question comes from the line of Kiral Pare with Dholak Capital. Please go ahead.

Speaker #2: Sir, I'm the.

Speaker #1: Thank you for taking my question. Sir, my first question is that the competition has mentioned that they have seen more traction with fintech brokers after they've made some tech changes, which have sort of reduced onboarding friction.

Hiral Parekh: Thank you for taking my question. Sir, my first question is that competition has mentioned that they have seen more traction with FinTech brokers after they have made some tech changes, which have sort of reduced onboarding friction. While we have maintained our market share in terms of total Demat accounts, however, for our incremental Demat market share, we have lost about 420 basis points since close of March. We are standing at 81.4% in June 2026. How are we viewing this in the light of how FinTechs are interacting with depositories? That's my first question. For my second question, if you could just help us understand the movement and other income in this quarter. If possible, could you just provide a broad split across e-KYC, e-voting, income from unlisted companies, and pledge income, and also any one-off?

Speaker #1: Also, I was looking at some data. While we have maintained our market share in terms of total DMAT accounts, for our incremental DMAT market share, we've lost about 420 basis points since the close of March.

Speaker #1: So we're standing at 81.4% as of June 26th. How are we viewing this in light of how fintechs are interacting with depositories?

Speaker #1: That's my first question. For my second question, if you could just help us understand the movement in other income in this quarter? If possible, could you just provide a broad split across ECAS, e-voting, income from unlisted companies, and pledge income?

Speaker #1: And also, any one-offs? Also, how much of this was driven by MTM gains?

Hiral Parekh: Also, how much of this was driven by MTM gains?

Speaker #5: Okay. So on your first question, Kiral, I think, again, I'll repeat what I said in the first question. The reply to the first question, we are an infrastructure company, and our intent at least at CDSL is not a quarter-on-quarter growth.

Nehal Vora: Okay. On your first question, Hiral, I think, again, I'll repeat what I said in the reply to the first question. We are an infrastructure company and our intent, at least at CDSL, is not a quarter-on-quarter growth. It is a long-term sustainable growth, which creates value proposition for the market. Growth in Demat accounts is a function of various functions on how the market perceives what is the total growth. The important thing is that the intermediaries and the investors should continue to believe and feel the value proposition of the CDSL platform. I would see this as more of continuous work in progress quarter on quarter, that how do you make our systems better in terms of value proposition.

Speaker #5: It is a long-term sustainable growth, which creates a value proposition for the market. Growth in demat accounts is a function of various factors on how the market perceives what is the total growth.

Speaker #5: The important thing is that the intermediaries and the investors should continue to believe in and feel the value proposition of the CDSL platform. So, I would see this as more of a continuous work in progress, quarter-on-quarter.

Speaker #5: How do we make our systems better in terms of value proposition? For me, the numbers are one thing, which we observe, but what’s more important is how we are able to ensure that the people who are accessing the CDSL platform continue to feel the value proposition each time they do so.

Nehal Vora: For me, the numbers is one thing which we observe, but it's more important is how are we able to ensure that the people who are accessing the CDSL platform continues to feel the value proposition as and when they do it. For the second question, I'll ask Girish to answer.

Speaker #5: And for the second question, I'll ask Girish to answer.

Speaker #3: So, breakup of other income consists of consolidated account statement-related fee, which is around ₹14.80 crore; e-voting income of ₹6.32 crore; investment mark-to-market related gain and other income accrued on investment is ₹43.8 crore.

Girish Amesara: Breakup of other income consists of Consolidated Account Statement related fee, which is around INR 14.80 crore. E-voting income of INR 6.32 crore. Investment mark to market related gain and other income accrued on investment is INR 43.8 crore. We have other operating revenue of INR 6 crore, which largely includes User Facility Accounts, maintenance charges, Document Storage Charges, Foreign Investment Limit Monitoring charges. We have last other income, INR 3.94 crore. This totals INR 75 crore on a consolidated basis.

Speaker #3: We have other operating revenue of ₹6 crore, which largely includes user facility accounts maintenance charges, document storage charges, foreign investment limit monitoring charges, and then we have last other income of ₹3.94 crore.

Speaker #3: This totals ₹75 crore on a consolidated basis.

Speaker #1: All right. Thank you so much, sir. Just one more question. For employee cost, they were up around 30% quarter-on-quarter. So, in case this consists of some bonus provisions, if you could just give us a broad split between the underlying increase and the bonus increase.

Hiral Parekh: All right. Thank you so much, sir. Just one more question. For employee costs, they were up around 30% QOQ. In case this consists of some bonus provisions, if you could just give us a broad split between the underlying increase and the bonus increase.

Speaker #5: So we don't give these numbers out in the public domain, but typically, it's the year-end appraisal process which constitutes this number.

Nehal Vora: We don't give these numbers out in the public domain, but typically it's the year-end appraisal process which constitutes this number.

Speaker #1: Okay. Okay. All right, sir. Thank you so much.

Hiral Parekh: Okay. All right, sir. Thank you so much.

Speaker #5: Thank you.

Nehal Vora: Thank you.

Speaker #3: The next question comes from the line of Swarna Mukherjee with 361 Capital. Please go ahead.

Operator: The next question comes from the line of Swarnabh Mukherjee with 361 Capital. Please go ahead.

Speaker #4: Hi, sir. Thank you for the opportunity. Sir, first, I just wanted to understand the KYC revenue in a little bit more detail. So as you mentioned that there was a dispensation by SEBI, if you could explain what exactly this was and till what time was this allowed?

Swarnabh Mukherjee: Hi, sir. Thank you for the opportunity. Sir, first, just wanted to understand the KYC revenue in a little bit more detail. As you mentioned that there was a dispensation by SEBI, if you could explain what exactly this was and till what time was this allowed so that we can get a sense what normalizes. If you could give us that, till what time you got the extra revenue and what is the amount of that. In terms of, you mentioned higher volume. Was this more on the fund side? If you could, maybe in a way, give us some color on the blended realization on new and fresh, maybe towards the end of the quarter, that would be very helpful. That's on the KYC side, sir.

Speaker #4: So that we can get a sense of what you know, a normalized rate could be. So if you could give us that—till what time you got the extra revenue, and what is the amount of that?

Speaker #4: And in terms of, you know, you mentioned higher volume. So was this more on the Fed side? And if you could maybe, in a way, give us some color on the blended realization on new and Fed, maybe towards the end of the quarter, that would be very helpful.

Speaker #4: That's on the KYC side, sir. Secondly, regarding our treasury book, if you could share what proportion of the assets is in equity or equity-oriented mutual funds?

Swarnabh Mukherjee: Secondly, on our treasury book, if you could share what proportion of the asset is in equity or equity-oriented mutual fund. Lastly, some data-keeping questions. In the annual issuer charges, if you could give us the amount of unlisted related revenue, and if you could break it up between processing and recurring fee. Also the pledge income, if you could provide, sir.

Speaker #4: And lastly, some data-keeping questions. So in the annual issued charges, if you could give us the amount of unlisted-related revenue, and if you could break it up between processing and recurring fee.

Speaker #4: And also the pledge income, if you could provide that, sir. Thank you.

Nehal Vora: Thanks. We don't give some part of that information data. The first question asks Sunil to answer, and the second and third, the CFO, Girish, to answer.

Speaker #5: So, we don’t give some part of that information or data. The first question I’ll ask Sunil to answer, and the second and third, the CFO, Girish, will answer.

Speaker #2: So the question that you asked was, what was SEBI's directive? So the charge was earlier Rs. 35 on pledge; it was reduced to Rs. 28.

Sunil Alvares: The question what you asked was what was SEBI's directive. The charges was earlier INR 35 on fetch. It was reduced to INR 28. There was a dip of 20%. Far as the charges on creation was concerned, it was around INR 20. It was reduced to INR 5, that was down by about 75%. Overall, during the quarter, the volumes were good, and that's how we more or less could maintain our performance as compared to Q1 of last year. In terms of the other charges, what SEBI allowed us to charge was on a search API, so that every time somebody searches a particular PAN, there is a small charge of INR 0.25 every time. That resulted in some income. Overall, the numbers are what we've already indicated to you. I hope that answers the question.

Speaker #2: There was a dip of 28—sorry, 20%. As far as the charges on creation were concerned, it was around ₹20. It was reduced to ₹5, five.

Speaker #2: And that was down by about 75%. But overall, during the quarter, the volumes were good. And, I mean, that's how we more or less, you know, could maintain our performance as compared to Q1 of last year.

Speaker #2: In terms of the other charges, what SEBI allowed us to charge was on a search API. So that every time somebody searches a particular PAN, there is a small charge of 25 paise that we charge.

Speaker #2: So, that resulted in some income. And overall, the numbers are what we've already indicated to you. I hope that answers the question.

Speaker #5: Yeah.

Nehal Vora: Yeah.

Speaker #4: Sir, just a follow-up on this. Sir, just like this:

Swarnabh Mukherjee: Sir, just a follow-up on this.

Nehal Vora: Just one minute. Can we just finish all the questions?

Speaker #5: Can we just finish all the questions? Otherwise, it will...

Swarnabh Mukherjee: Yeah.

Nehal Vora: Otherwise, it will lead to a-

Speaker #4: Sure, sir. Please go ahead. Thank you.

Swarnabh Mukherjee: Sure, sir. Please go ahead. Thank you.

Speaker #5: So, we do not make any direct investment in the equity schemes of mutual funds. We generally invest in debt schemes. We have a small portion of ETF investment, which ranges from 5% to 7% of our investable portfolio.

Girish Amesara: We do not make any direct investment in the equity schemes of mutual fund. We generally invest in debt schemes. We have a small portion of ETF investment, which ranges from 5% to 7% of our investable portfolio.

Speaker #5: Okay. And pledges?

Nehal Vora: Okay. pledge income.

Speaker #3: Pledge income: In this quarter, we have achieved a margin pledge of ₹6.19 crore. With respect to your question on unlisted revenue, we have achieved unlisted revenue of ₹0.30 crore, ₹0.30 crore.

Girish Amesara: Pledge income, in this quarter, we have achieved a margin pledge of INR 6.19 crore.

Swarnabh Mukherjee: Right.

Girish Amesara: With respect to your question on unlisted revenue, we have achieved unlisted revenue of INR 0.30 crore, and application processing fees of INR 2.32 crore in this quarter. Majority income, if you look at ACF, annual custody fees, is all listed companies.

Speaker #3: And application processing fees of ₹2.32 crore in this quarter. So, majority income, if you look at ACF, annual custody fees, is all listed companies.

Speaker #4: Right, sir. That's very helpful. Just on the KYC front, a follow-up: Was the search API-led revenue? Will this continue henceforth? And can you perhaps share the proportion or quantum of that?

Swarnabh Mukherjee: Right, sir. That's very helpful. Just on the KYC thing, sir, the follow-up. The third API-led revenue, this will continue henceforth, and can you share maybe a proportion or a quantum of that?

Speaker #2: No, it will continue. But right now, I will not be able to give you the overall details. It is included in the overall income of KRS.

Sunil Alvares: No, it will continue, but right now I'll not be able to give you the overall details. It's included in the overall income of KRAs.

Speaker #4: Okay. And just, sir, compared to the rack rate having gone down in KYC, as we know, has the actual eventual chargeable—what you were charging—gone down by a similar quantum?

Swarnabh Mukherjee: Okay. Just, sir, compared, like the rack rate has gone down in KYC, as we know. The actual eventual chargeable, what you are charging, has it gone down by a similar quantum?

Speaker #2: Obviously, we'll have to follow SEBI's directive, right?

Sunil Alvares: Obviously, we'll have to follow SEBI's directive, right?

Speaker #3: And that has to be followed by all the KRS. It's not only us; it's industry-wide.

Nehal Vora: That has to be followed by all the KRAs. It's not only us, it's an industry-wide.

Speaker #2: It's an industry-wide circular, so everybody has reduced their charges accordingly.

Sunil Alvares: It's an industry-wide circular. Everybody's reduced their charges accordingly.

Speaker #4: Yeah. I mean, I meant that, sir. Eventually, what you were realizing—say, in terms of if you give some volume discounts or anything to any customer—then has the realizable rate also gone down at the same level?

Swarnabh Mukherjee: Yeah. I meant that, sir, eventually what you are realizing, say, in terms of, say, who gives some volume discounts or anything to any customer, then even the realizable rate, has it also gone down at same level?

Speaker #2: We actually don't discuss this in our investor calls.

Sunil Alvares: We actually don't discuss this in our investor call.

Speaker #4: Okay, sir. Okay. Thank you. Thank you so much, sir, and all the best for FY27.

Swarnabh Mukherjee: Okay, sir. Okay. Thank you. Thank you so much, sir, and all the best for FY27.

Operator: The next question comes from the line of Sanket Godha with Avendus Spark. Please go ahead.

Speaker #3: The next question comes from the line of Sankit Agoda with Avendis Park. Please go ahead.

Speaker #1: Yeah, yeah. Thank you. Thank you for the opportunity, sir. Sir, my first question is on annual issued charges again. Because the way you said the 38.73 crore accounts, actually the folio count seems to be growing at 16-17% year on year.

Sanket Godha: Yeah. Thank you for the opportunity, sir. Sir, my first question is on annualization charges again, because the way you said the INR 38.73 crores account, actually, the folio count seems to be growing at 17% year on year compared to the last year. The overall growth is just 12%. The relatively lower growth is largely because of unlisted piece, sir. That's a fair way to understand?

Sanketh Godha: Yeah. Thank you for the opportunity, sir. Sir, my first question is on annualization charges again, because the way you said the INR 38.73 crores account, actually, the folio count seems to be growing at 17% year on year compared to the last year. The overall growth is just 12%. The relatively lower growth is largely because of unlisted piece, sir. That's a fair way to understand?

Speaker #1: Compared to last year. But the overall growth is just 12%. So, the relatively lower growth is largely because of unlisted fees, sir.

Speaker #1: That's a fair way to understand.

Speaker #3: If you compare on a quarter-on-quarter basis, yes.

Nehal Vora: If you compare on quarter-on-quarter basis, yes.

Sanket Godha: Understood. In unlisted, that opportunity what we had in last year, and maybe say changing some threshold levels, the numbers what you mentioned in the current call are likely to remain going ahead. Maybe not the exact number, but that's the new normal. Is it fair to understand, sir?

Sanketh Godha: Understood. In unlisted, that opportunity what we had in last year, and maybe say changing some threshold levels, the numbers what you mentioned in the current call are likely to remain going ahead. Maybe not the exact number, but that's the new normal. Is it fair to understand, sir?

Speaker #1: Understood. Understood. And in unlisted, that opportunity, what we had in last year, with and maybe MCA changing some threshold levels, the numbers what you mentioned in the current call are likely to remain going ahead.

Speaker #1: Maybe not the exact number, but that's the new normal we need to— is it fair to understand, sir?

Speaker #3: See, again, it's difficult to give a forward-looking statement, but it is all driven by the overall regulatory intent of ensuring that more and more companies come into the fold of depositories.

Nehal Vora: Again, it's difficult to give a forward-looking statement, it is all driven by overall regulatory intent of ensuring that more and more companies come into the fold of depositories. We'll see how and in which manner, in a phase-wise manner, this will increase. We're not able to give any specifics, but the overall regulatory intent is there.

Speaker #3: So we'll see how and in which manner, in a phase-wise manner, this will increase. So we're not able to give any specifics, but the overall regulatory intent is there.

Speaker #1: And sir, on a related business, sir, you said the Search API for PAN card is 25 paise, if I understood right. That's the charge you own, right?

Sanket Godha: Sir, on CVL business, you said search API for PAN card is INR 0.25. If I understood right, that's the charge you own, right?

Sanketh Godha: Sir, on CVL business, you said search API for PAN card is INR 0.25. If I understood right, that's the charge you own, right?

Speaker #3: Yeah.

Speaker #1: I understood. Okay, got it, sir. And last two questions: one, if you can give your impairment cost number, which you typically give every quarter.

Nehal Vora: Yes.

Sanket Godha: Understood. Okay. Got it, sir. Last two questions. One, if you can give your impairment cost number, which you typically give every quarter. Second, again on CVL, in the initial remarks you said that though the charges were lower, you benefited from other digital services. Which you intend to say that you got any SEBI project which helped you to neutralize that impact? Or if you can give the breakup, if you can give a color of that INR 45 crore broken down into pure KYC income and maybe some other source of revenue what you typically get.

Sanketh Godha: Understood. Okay. Got it, sir. Last two questions. One, if you can give your impairment cost number, which you typically give every quarter. Second, again on CVL, in the initial remarks you said that though the charges were lower, you benefited from other digital services. Which you intend to say that you got any SEBI project which helped you to neutralize that impact? Or if you can give the breakup, if you can give a color of that INR 45 crore broken down into pure KYC income and maybe some other source of revenue what you typically get.

Speaker #1: And second, again on CVL— in your initial remarks, you said that though the charges were lower, you benefited from other digital services. So, did you mean to say that you got any SEBI project which helped to neutralize that impact? Or, if you can give the breakup, if you can give a sense of that ₹45 crore broken down into pure KYC income and maybe some other sources of revenue that you typically get.

Speaker #3: So, the impairment cost, debtor provision is ₹2.22 crore in this quarter. And what Sunil had explained for CVL-related income is purely KYC-related income, which we explain every quarter to you.

Nehal Vora: The impairment cost data provision is INR 2.22 crore in this quarter. What Sunil had explained for CVL related income is purely KYC related income, which we explain every quarter to you.

Sanket Godha: Yeah, I understood, sir. In initial comments, Sunil sir said that there were other.

Sanketh Godha: Yeah, I understood, sir. In initial comments, Sunil sir said that there were other.

Speaker #1: Sir, yes, I understood. In the initial comments, Sunil Sir said that there were other digital services.

Speaker #3: It is part of the online data charges that we normally provide as a disclosure.

Nehal Vora: It is part of the online data charges that we normally provide as disclosure.

Speaker #1: Understood, sir. Yes, that's it from me, sir. Thank you very much.

Sanket Godha: Understood, sir. Yes. That's it from my side. Thank you very much.

Sanketh Godha: Understood, sir. Yes. That's it from my side. Thank you very much.

Speaker #3: Thank you.

Nehal Vora: Thank you.

Speaker #4: The next question comes from the line of Madhukar with JP Morgan. Please go ahead. Good afternoon. Thank you for taking my question. So, first, you know, I joined a little late.

Operator: The next question comes from the line of Madhukar with JPMorgan. Please go ahead.

Madhukar Ladha: Good afternoon. Thank you for taking my question. First, I joined a little late. What is the folio count for last year? I'm not sure whether you've given that number or not. Second, we were also in the process of being able to issue the ISINs. I wanted to just get an update on that. Have we got that capability right now? Are we doing that for unlisted companies? Third, sir, on employee expenses, that have gone up materially both on a year-over-year and on a quarter-over-quarter basis also. Should we expect this number to be sort of our run rate for the rest of the year? Thanks.

Speaker #4: What is the folio count for last year? I'm not sure whether you've given that number or not. Second, we were also in the process of being able to issue the ISINs.

Speaker #4: I just wanted to get an update on that. Do we have that capability right now? And are we doing that for unlisted companies?

Speaker #4: And third, sir, on employee expenses, they have gone up materially both on a year-over-year and on a quarter-over-quarter basis as well. Should we expect this number to be our run rate for the rest of the year?

Speaker #4: Thanks.

Speaker #3: Okay, I'll answer your third question first. See, the year-on-year has increased as the number of employees has grown. And that is a function of the complexity and the scale of operations growing, and whatever is required.

Nehal Vora: Okay. I'll answer your third question first. See, the year-on-year, as it is, the number of employees have grown, that is a function of as the complexity and the scale of operations grow and whatever is required, we are very mindful of that. The answer to quarter-on-quarter, because this is the end of the year appraisal. We follow a financial year appraisal cycle. The appraisal had got done in this quarter, which has just ended, all the variable pay, et cetera, is paid in this quarter. You can check out the trends of the previous year's quarters to understand how the employee cost trend works. On the first two, I'll ask the CFO, Girish, to answer. The folio that we achieved this year is INR 38.73 crore.

Speaker #3: We are very mindful of that. The answer to quarter, quarter, and quarter—because this is the end of the year appraisal—we follow a financial year appraisal cycle.

Speaker #3: So the appraisal got done in this quarter, which has just ended, and all the variable pay, etc., is paid in this quarter. So you can check out the trends of the previous year's quarters to understand how the employee cost trend works.

Speaker #3: For the first two questions, I'll ask the CFO, Girish, to answer.

Speaker #4: So the folio that

Speaker #2: We that you, this year, is 38.73 crore.

Speaker #4: Okay.

Madhukar Ladha: Okay.

Speaker #3: And in terms of the ISIN, again, we are in active engagement. It has not yet gone live. It needs to go through its processes.

Nehal Vora: In terms of the ISIN, it's again, we are in active engagement. It's yet not gone live. It needs to go through its due processes. Really, as in when it goes live, we will definitely be making the necessary announcements.

Speaker #3: So, as and when it goes live, we will definitely be making the necessary announcements.

Speaker #4: Got it, sir. Understood. And last year, the number was 33.2 crore for the folio count.

Madhukar Ladha: Got it, sir. Understood. Last year, the number was 33.2 crores for the folio count.

Speaker #3: Yeah.

Speaker #4: Right? Thirty-three. Yeah. Yeah. Okay. Okay. Yeah. Got it. Thanks. Thanks, sir.

Nehal Vora: Yes.

Madhukar Ladha: Right? 33. Yeah. Okay.

Nehal Vora: Yes.

Madhukar Ladha: Got it. Thanks.

Nehal Vora: Okay. Thank you.

Speaker #3: Okay. Thank you.

Speaker #4: A reminder to all participants: you may press star and one to ask a question. The next question comes from the line of Neeraj Toshniwal with UBS.

Operator: A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Neeraj Toshniwal with UBS. Please go ahead.

Speaker #4: Please go ahead.

Speaker #1: Hi, sir. Again, on this KYC on the search API, if you can give more color on what particular—as you mentioned, there's some particular plans, not across the board.

Neeraj Toshniwal: On this KYC, on the search API, if you can give more color on what particular, as you mentioned, sir, this is on some particular plans, not across the board. If you can give some more color on how much volume it can generate every quarter, what would be the run rate? How much benefit we have, kind of tentative is also fine, we have kind of received or we may continue to receive because of this. Maybe even of the impact of the RAAGRI which is happening, that'd be very helpful.

Speaker #1: If you can give some more color on how much volume it can generate every quarter, what could be the run rate, and how much benefit we have—kind of tentative is also fine.

Speaker #1: We have kind of received, or we may continue to receive because of this. We even know the impact of the rack rate which has happened.

Speaker #1: That would be very helpful.

Speaker #3: So, we don't give any future or forward-looking statements. I'll ask Sunil to supplement that, but that's number one. Number two is a measure which has just kicked in from this quarter.

Nehal Vora: We don't give any future and forward-looking statements. I'll ask Sunil to supplement it, but that's Number two. It's a measure which has just kicked in from this quarter. You may like to observe it over quarter-on-quarter how the volumes go forward. Generally, we do not give any future forward-looking statements. Sunil, if you want.

Speaker #3: So you may like to observe it over quarter-on-quarter how the volumes go forward. But generally, we do not give any forward-looking statements.

Speaker #3: Sunil, if you want to.

Speaker #1: No, I was also asking, from the current volume, how much of the volume have we been able to generate this income we have within that ₹45 crore?

Neeraj Toshniwal: I was asking more so from the current volume, how much on the volume we have been able to kind of generate this income within that INR 45 crores.

Speaker #2: It is very difficult to actually pinpoint that, because many of the intermediaries, after this rate was levied on them, started fine-tuning their systems.

Sunil Alvares: It's very difficult to actually pinpoint on that because many of the intermediaries, after this rate was levied on them, they started fine-tuning their system and we've seen a considerable drop over a period of the second and third month. We are waiting for it to stabilize, then we will really actually have a fair idea. Earlier people were doing searches for PAN, one PAN, maybe 20, 30 times a day. Now that will come down significantly. That is our reading into it. We will have to wait for one more quarter to really see where it actually stabilizes.

Speaker #2: And we see a considerable drop over a period of the second and third month. So we are waiting for it to stabilize. Then we will actually have a fair idea because earlier, people were doing searches for PAN—one PAN, maybe 20 or 30 times a day.

Speaker #2: So now, that will come down significantly. That is our reading into it. So we'll have to wait for one more quarter to really see where it actually stabilizes.

Speaker #1: Okay, that is helpful. Also, in terms of understanding any further measures we can take to reduce the impact on the rack rate, could you elaborate?

Neeraj Toshniwal: Okay. That is helpful. Also, in terms of understanding any other further measures we can take to kind of reduce the impact on the RAAGRI, like the edit charge and all, any other charge. Plus, UNIFI, sir, if you also can touch upon, that is again we talked about

Speaker #1: Like the added charge and any other charges? Plus, if you can also touch upon unified KYC, as that is again being talked about.

Speaker #2: So, as far as unified KYC is concerned, we are in the process of getting integrated with SEPSI, and we are in the process of testing their systems and all.

Sunil Alvares: Far as unified KYC is concerned, we are in the process of getting integrated with CERSAI, and we are in the process of testing their systems and all. That will happen, but I cannot give you an exact date by when it will happen. It all depends when their systems are available, et cetera, to us, and when we actually go live. These discussions are again happening between the regulators and CERSAI. Once we get a very clear picture of what process should we actually follow, though it is more or less defined, but once we actually test the system and see whether what has been decided, whether we are following the same process, then we will be able to actually tell you with more clarity.

Speaker #2: That will happen, but I cannot give you an exact date by when it will happen. It all depends on when their systems are available to us and when we actually go live.

Speaker #2: So these discussions are again happening between the regulator and SEPSI. So once we get a very clear picture of what process we should actually follow...

Speaker #2: Though it is more or less defined, but once we actually test the system and see whether what has been decided is being followed—whether we are following the same process—then we'll be able to actually tell you with more clarity as well.

Neeraj Toshniwal: Okay. Does this rack rate will sustain or it will further go down once the unified KYC is.

Speaker #1: Okay. But will this rack rate sustain or further go down once the in-field KYC is implemented?

Sunil Alvares: Again, forward-looking question, which is very difficult to answer because this is just the Q1. I've already told you we'll have to wait for another quarter to see what really happens.

Speaker #2: Again, you're asking a forward-looking question which is very difficult to answer, because this is just the first quarter. I've already told you we'll have to wait for another quarter to see what really happens.

Speaker #1: Okay, and any other measures to kind of, you know, make up the loss in the rack rate which we can do, apart from the search API?

Neeraj Toshniwal: And any other measures to kind of make up the loss in the rack rate, which we can do apart from the search API?

Speaker #3: So again, I think you need to observe how the general trend is. It's market volume-driven and rate-driven, so it's kind of a mixture of both.

Nehal Vora: Again, I think you need to observe how the general trend is. It's market volume driven and rate driven. It's kind of a mixture of both. As the overall activity increases, decreases, that's how the functioning works. Again, the overall intent is we are a market infrastructure company. It's overall creating a value proposition through CDSL and its subsidiaries, and giving the customer continuous value proposition because this is a way of life in terms of going forward. That has been our main focus on how we function.

Speaker #3: So, as the overall activity increases or decreases, that's how the functioning works. Again, the overall intent is, we are a market infrastructure company.

Speaker #3: It's overall creating a value proposition through CDSL and its subsidiaries, and giving the customer continuous value proposition, because this is a way of life in terms of going forward.

Speaker #3: So that's been our main focus on how we function.

Neeraj Toshniwal: Okay. Got it. Thank you and all the best. Yeah.

Speaker #1: Okay, got it. Thank you. All the best. Yeah.

Speaker #3: Thank you.

Nehal Vora: Thank you.

Speaker #4: The next question comes from the line of Suvarnab Mukherjee with 361 Capital. Please go ahead.

Operator: The next question comes from the line of Swarna Mukherjee with 361 Capital. Please go ahead.

Speaker #5: Hi, sir. Thank you for the follow-up opportunity. Yes, there are a couple of things I wanted to understand. So, you mentioned that in unlisted revenue, the issuer revenue is ₹0.3 crore.

Swarnabh Mukherjee: Hi, sir. Thank you for the follow-up opportunity. Just a couple of things I wanted to understand. You mentioned that in unlisted revenue, the issuer revenue is INR 0.3 crore. Did I get it right?

Speaker #5: Did I get it right?

Speaker #1: Hello?

Nehal Vora: Hello?

Speaker #3: Yes.

Girish Amesara: Yes.

Swarnabh Mukherjee: Last quarter it was INR 3.5 crore. For the processing fee, last quarter was INR 3 crore, which is around INR 2.3 crore. Just wanted to understand that if the universe of this unlisted has changed because of the regulation. Why are we seeing an impact on the issuer revenue? I had kind of thought that maybe the application processing side might see some impact. If you could just help me understand what is playing out here, that would be very helpful.

Speaker #5: So last quarter, it was three and a half crore. And for the processing fee, last quarter was three crore, which is around 2.3 crore.

Speaker #5: So, sir, just wanted to understand that, you know, if the universe of this unlisted has changed because of the regulation, I mean, why are we seeing an impact on the issuer revenue?

Speaker #5: I had kind of thought that, you know, maybe the application processing side might see some impact. If you could just help me understand, you know, what is playing out here.

Speaker #5: That would be very helpful.

Speaker #2: Normally so normally what happens is that we get a question in this call that what is the unlisted revenue on from the company's unlisted company's admitted during the quarter.

Girish Amesara: normally, what happens is that, we get a question in this call that what is the unlisted revenue from the unlisted companies admitted during the quarter. I'd given that figure. Okay? Normally, we do not give breakup of listed and unlisted annual custody fees because we do not track that way.

Speaker #2: At that given figure, okay? Normally, we do not give a breakup of listed and unlisted annual custody fees because we do not track it that way.

Speaker #5: Okay. Okay, this is very clear. Yeah. Thank you, sir. All the best.

Swarnabh Mukherjee: Okay. This is very clear, sir. Yeah. Thank you, sir. All the best.

Speaker #3: So thank you.

Nehal Vora: Thank you.

Speaker #4: Participants, you may please press star and one to ask a question.

Operator: Participants, you may press star and one to ask a question. The next question comes from the line of Prayesh Jain with Motilal Oswal Financial Services. Please go ahead.

Speaker #2: Anything else?

Speaker #4: The next question comes from Priyesh Jain with Motilal Oswal Financial Services. Please go ahead.

Speaker #2: Yeah. Hi, sir. Sorry if I'm asking this question again, if it has already been asked—I joined a bit late. I just wanted to ask about computer and technology-related expenses. After a few quarters, we've seen some stability in that number.

Prayesh Jain: Yeah. Hi, sir. Sorry if I am asking this question again. If it has been repeated, I've joined a bit late. Just on this computer and technology-related expenses. After some time, after a few quarters, we've seen stability in that number. Is it fair to think that we are closer to now peaking out at our investments in this piece, and from here on, it'll be more of an inflationary spend and that would allow us to see operating leverage benefits coming out?

Speaker #2: So is it fair to think that we are closer to now, you know, peaking out at our investments in this piece and from here on it will be more of an inflationary spend, and that would, you know, allow us to see operating leverage benefits coming out?

Speaker #3: So, I think being a part of the overall ecosystem, we are part of Motilal Oswal Technologies—something which continuously continues to evolve. And it's very difficult to predict whether we've reached the top end of the technology spend or not.

Nehal Vora: I think being as a part of the overall ecosystem, we are part of Motilal Oswal. Technology is something which continues to evolve, and it's very difficult to predict whether we've reached the top end of the technology spend or not. The important thing is about the intent of ensuring the value proposition to all the stakeholders and ensuring that the newer products and platforms which are being introduced is being incorporated into the CDSL ecosystem. One is we don't give any future and forward-looking statements, but it is a function of the overall products which are going to be introduced in future and the newer products on the technology side which are getting introduced, how much of that could be implemented at CDSL. That itself will kind of lead to basically what level the technology expenses will continue in the future quarters.

Speaker #3: The important thing is about the intent of ensuring the value proposition to all the stakeholders, and ensuring that the newer products and platforms which are being introduced are being incorporated into the CDSL ecosystem.

Speaker #3: So, one is we don't give any future and forward-looking statements. But it is a function of the overall products which are going to be introduced in the future.

Speaker #3: And the newer products on the technology side which are getting introduced, how much of that could be implemented at CDSL? That itself will kind of lead to whether it is—whether at basically what level the technology expenses will continue in the future quarters.

Speaker #2: Okay. And why is the tax rate so high in this quarter?

Prayesh Jain: Okay. Why is the tax rate so high in this quarter?

Speaker #3: Another safer answer: tax rate—we are having a tax rate of 25.17%, so we are within that.

Nehal Vora: I'll ask Kedar to answer that.

[Company Representative] (CDSL): Tax rate. We are having a tax rate of 25.17%, so we are within that.

Girish Amesara: Tax rate. We are having a tax rate of 25.17%, so we are within that.

Speaker #2: Okay. Okay. And the second one, and the last one: Could you give us a breakup of your cash investments—how much is in equity, and how much is in debt instruments, in some form?

Prayesh Jain: Okay. Second one and last one. Could you give us a breakup of your cash investments as to how much is in equity, how much is in debt instruments in some form? Largely, that's coming in from the fact that the other income has seen a sharp jump. Just wanted to understand the color of the investment book and the reason for the sharp jump in the other income.

Speaker #2: Largely, that's coming in from the fact that other income has seen a sharp jump. So, I just wanted to understand the color of the investment book and the reason for the sharp jump in the other income.

Speaker #3: See, we have an internal investment policy; we follow that policy and normally we don't discuss the breakup of the various instruments in which we have made investments.

Girish Amesara: See, we have an internal investment policy. We follow that policy. Normally we don't discuss the breakup of various instrument in which we make investments. What I can tell you is that we do not make investment in equity schemes of mutual funds. Rest, whatever is available in the market, we make investment as per the investment policy.

Speaker #3: So, what I can tell you is that we do not make investments in equity schemes of mutual funds. As for the rest, you know, whatever is available in the market, we make investments as per our investment policy.

Speaker #2: So, what drove this? At least can you explain what drove this jump in the—

Prayesh Jain: What drove this? At least you can explain what drove this jump.

Speaker #3: Back to market, back to market gain during the quarter.

Girish Amesara: Mark to market gain during the quarter.

Speaker #2: Got that. Thank you, and all the best.

Prayesh Jain: Got that. Thank you, and all the best.

Speaker #3: Thank you.

Nehal Vora: Thank you.

Speaker #4: Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to Mr. Nehal Vora for the closing comments.

Operator: Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to Mr. Nehal Vora for the closing comments.

Speaker #3: No, I would sincerely like to thank all of you for your participation. Continue to remain safe and healthy. Thank you, and Jai Hind.

Nehal Vora: I would sincerely like to thank all of you for your participation. Continue to remain safe and healthy. Thank you. Jai Hind.

Speaker #4: Thank you, sir.

Operator: Thank you, sir.

Speaker #2: Okay.

Nehal Vora: Okay.

Speaker #4: Thank you, sir. Ladies and gentlemen, on behalf of HDFC Securities, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.

Operator: Thank you, sir. Ladies and gentlemen, on behalf of HDFC Securities, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.

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Q1 2027 Central Depository Services Ltd Earnings Call

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