India’s leading securities depository, Central Depository Services Limited (CDSL), is experiencing significant turbulence in 2025, with its stock plummeting by 35% year-to-date. This abrupt downturn has left investors anxious, questioning the underlying factors contributing to this decline. Despite its essential role in facilitating the holding and transfer of dematerialized securities within the capital markets, several critical issues have led to a downward trend in CDSL’s share price.

Key Factors Impacting CDSL’s Stock Performance

Let’s delve into the primary reasons behind CDSL’s current stock struggles.

Disappointing Q3 Performance: Growth Falls Short

In its Q3 FY25 results, CDSL reported a 21.5% year-on-year increase in profit after tax, totaling ₹130 crore. Additionally, total income surged by 26.3% to reach ₹298 crore.

However, the quarter-on-quarter analysis reveals a stark contrast, with net profit taking a 38.6% hit and total income declining by 27.47% from the previous quarter. This significant drop in earnings has prompted investors to sell off their shares, raising alarms about the company’s financial health.

Slowdown in New Demat Account Openings

Another pressing issue for CDSL is the noticeable slowdown in the creation of new demat accounts.

As of February 2025, CDSL, alongside its competitor NSDL, recorded a total of 19.04 crore demat accounts, a slight uptick from 18.81 crore in January. However, the addition of new accounts was lackluster, with only 22.6 lakh new accounts opened, marking a 20% decline from January and a staggering 48% drop compared to February 2024.

Volatile Stock Trends

CDSL’s stock performance has been erratic lately. Over the last five trading days, the stock saw a 0.5% decline, while it managed a modest 2.5% gain over the past month. However, the broader market trend tells a more concerning story.

In the past six months, CDSL’s stock has dropped by 19%, despite a 40% increase over the last year. Nevertheless, the 35% year-to-date decline in 2025 has overshadowed these long-term gains, causing alarm among investors and analysts alike.

Current Stock Position: 52-Week Range Insights

Currently trading at ₹1,183, CDSL’s stock is approximately 40.5% below its 52-week high of ₹1,989.80 and 41.2% above its 52-week low of ₹837.50. This disparity highlights the volatility and uncertainty surrounding the stock, prompting many to speculate on the company’s future trajectory.

In summary, while CDSL remains a significant player in the securities market, the combination of disappointing earnings, a slowdown in account openings, and volatile stock performance raises valid concerns for investors looking ahead.