Thank you, operator. Good evening, everyone.

On behalf of HDFC Securities, we welcome you all to the CDSL Quarter 3 FY '26 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 now start with a brief overview of the quarter by Mr. Nehal Vora, and then we will open up the floor for the question-and-answer session.

Thank you, and over to you, Nehal, sir.

Right for reference. I'm joined here today by the CDSL group's team of senior leaders.

Let us start with the industry highlights, and then we can go through some of the key aspects of our performance. The combined average daily turnover at BSE and NSE for December 2025 was around 1 lakh crores, about 8.3% less than the average daily turnover for the same period of the previous year.

I'm glad to report that as a depository industry, we have crossed 21.6 crore demat accounts, and CDSL saw more than 75-plus lakh accounts opened during this quarter, bringing our total to 17.27 crore demat accounts, maintaining our 80% share. During the quarter, CDSL received certain key recognitions, including two of the major global awards, including the Central Securities Depository of the Year 2025 by, basically, The Asset Servicing Times and Market Infrastructure Award at the Regulation Asia Awards for Excellence 2025, whilst our CSR efforts were also recognized with a Project of the Year: Healthcare Award at the India CSR Awards 2025.

For us, the investors remain at the heart of our ecosystem, and we strive to stay closely connected with them through our various social media platforms. I'm pleased to share that these efforts have paid off, as we recently crossed a milestone of 100 million YouTube channel views on the CDSL account.

This achievement reinforces our commitment to reaching and educating as many persons as possible. In the last quarter, CDSL also launched its first-ever Reimagine, basically, Ideathon, an initiative under its annual Reimagine symposium, engaging young, innovative minds to reimagine investor empowerment to ensure that the market can really trust it at scale.

The Ideathon saw around 1,000 people wanting to, basically, register with us and witnessed participation of students from nearly 100 institutions across 21 states and two union territories. The final rewards will be announced on this coming weekend.

As we move on to a new quarter for the new year of 2026, our focus remains on building the infrastructure that is not only scalable and secure, but is also inclusive and investor-first. We endeavor to continuously monitor and upgrade the capacity, security, and sophistication.

We continue to prioritize our #Aatmanirbhar investor-focused approach while striving for innovation into consistent and sustainable financial and business performance. We will continue to work efficiently while upholding our investor-centric culture.

I would like to reaffirm that CDSL's focus remains on enhancing the securities market ecosystem by enhancing trust. The market, with its ebbs and flows, continues to support the Indian economy, and we owe all the progress to a strong ecosystem that has put constant faith in us.

My appreciation and gratitude to all our stakeholders starting from SEBI as the regulator, other regulators, depository participants, issuers, investors, and all participants, shareholders, and employees. Thank you, and over to the CFO, Girish.

Thank you, Nehal. Good morning and good afternoon to everyone.

On a consolidated basis, for the nine months performance, the total income is achieved at 970 crore as against 944 crores for the corresponding nine months of the previous year. Consolidated net profit for the nine months is achieved at 375 crore as against 426 crore for the corresponding nine months.

In terms of quarterly performance on consolidated basis, the total revenue for the quarter ended December is achieved at 334 crore as against 298 crore for the corresponding quarter of the previous year. The standalone net profit is achieved at 133 crore as against 130 crore for the corresponding quarter of the previous year.

Talking on standalone performance for nine months, the total income is achieved at 881 crore as against 780 crore for the corresponding nine months. The net profits for the nine months is achieved at 399 crore as against 381 crore for the corresponding nine months of the previous year.

On a quarterly basis, the standalone total revenue is achieved at 279 crore as against 235 crore for the corresponding quarter of the previous year. The net profit for the quarter ended December is achieved at 120 crore as against 105 crore for the corresponding quarter of the previous year.

With this, I will request Sunil to take us through CVL numbers. Thank you, and over to you, Sunil.

Trying to see if this works. Good evening and thank you for joining us today.

For the nine-month period ended for December 2025, [unclear] 129 crore in nine months. The total income for the period is [unclear].

The total cost, other expenses in the [unclear] 83 crore in [unclear]. As a result, the profit before tax for the period was 55 crore against 122 crore [unclear].

After tax, that was [unclear] crores compared to [unclear] FY '25. Thank you for your [unclear].

Look forward to addressing your questions.

In terms of queries that we received, are we to hold on the [unclear] answers given to the query?

was, "Is this transaction even allowed?" Two, "If yes, what is the reason code?"

I think both we have tried to answer, and just as a matter of approach, it is a complicated thing. We have not tried to go into too much of, ki hume kya kya aata hai, hum sab dikha rahe hain ki hume ye [unclear].

Jitna poocha utna batao. Because a lot of this, if you go into FEMA or other stuff, NR to NR account and uske proceed, a lot may require deeper understanding of provisions.

Jaise NR to NR transfer, like Akshay was saying, there's no express restriction under our bye-laws or under FEMA regulations. It's thoda sa difficult for me to sort of digest that, because there are restrictions in place.

That Press Note 3 wala thing, it is all about restrictions: who cannot transfer, who can transfer. It is a bigger issue than what we may realize in our day-to-day life, because the issue is a national issue, to say.

Imagine if companies start transferring their shares to aise hi, American companies start to transfer shares of Indian companies to Chinese companies, to Pakistani companies, to whatever companies. We'll be country run by China or Pakistan or God knows whatever.

These require approval from necessary ministries or authorities or governments. We shouldn't go into those things.

Jo simple question humse poocha hai, hume uska answer dena chahiye. According to me, we can rather than going into too much of depth, we can simply...

Amit, are you able to hear?

...correct. That's why qualifications jo humne diye hain, these are sort of disclaimers that we have not reviewed any foreign laws.

Unhone poocha ki tumhare system me ye ho sakta hai ya nahi, humne bola hai ki ho sakta hai under this particular category, transfer between two BOs. What was that?

Non-market, off-market BO transfers. Because this reply we given to SEBI in this format and in this language, can we inform this?

This is exactly this has prepared... Keep in mind yehi SEBI ko jayega.

Haan, SEBI. Means SEBI bolega either you say yes or no.

Or if you want, you can avail of section [unclear] additional documents, additional information from Deloitte. And...

No, no, for what? Are we answering the question?

Yes, we are saying it can be done. Ab reason code jab hai hi nahi, toh kya bole?

See, we can only say what we can conclude, right? We are concluding, okay, like this, let's assume this: Can he just transfer his shares to me?

Answer is yes, but this is example that we're discussing. It will either be a gift or it will be a off-market...

Sale done. Sale chal raha hai?

Haan, correct. Yahan pe consideration nahi dikha sakte, so that's why we're not taking it into...

Sale purchase me we have to show consideration. Exactly.

Gift me yes. Exactly.

Yahan pe sale toh nahi ho raha kyunki there's no consideration. Woh hamara ek mandatory field hai.

You'll have to, if you...

No, they have a consideration, but it's not coming to India. It's between one foreign company to other foreign company.

I think both are Singapore... Can you repeat?

From one foreign company to the other foreign company, uske badle they are giving shares of Indian company, yeah, Indian company to each other. Matlab in India, one company to other company.

As far as we are concerned or our system requirement's concerned, there's no consideration, or we are, while knowing that there is a consideration, in India, there is nothing about it. PK has given like three options [unclear].

Treated as loan or paid overseas, no consideration is also something...

Hello, operator?

Yes, Amit, we can hear you.

Which line is coming on the call? Which line has been linked?

See, like a gift as far as our system is Apne system ko aur kya bataoge? Right?

Hamara system is built a certain way, aapko consideration dalna hi hai. Toh agar nahi daal sakte matlab ya toh woh gift hai ya toh it's off-market transfer securities between two accounts maintained in India by non-resident beneficial owners.

That's about it, right? Right.

Yes, correct. Basically, that...

...if SEBI says that the new reason code description can be off-market not for sale, it's very easy. Aisa agar kuch hai, toh we can use that.

Agar nahi hai, toh we'll have to I don't know who proposes to make that new... Nahi, actually this should be decided between the depository.

Correct. Are you in touch with NSDL also, like how they are responding to this?

No. Whether they are doing this or not in any other reason code?

No. No, they are also of the same opinion, bro.

We spoke with them. We will have to go in the channel of probably a new reason code or something like that.

They are also of the same opinion. Yeah.

You are right. We'll seek some more document from Deloitte and ask...

They are seeking more documents. I think it's similar to what we shared.

She also gave us a sample only of what shared with the auditor. Like that.

That kind of... Sure, sure, sure.

I don't know how because this has nothing to do with that.

Yes, please.

Our

Okay. My first question is on the cost side.

Your technology costs have increased by around 4x over, since FY '23, whereas during the same period, volume increase has been somewhere around 1.8-2x. Just wanted to understand if you could give us some color or understanding with respect to how you're seeing the technology spend, or which areas are you spending this money and what capacity requirement do you need to put in place?

Because in a market where volumes have not been growing since the last one year, still the computer technology costs appears to be growing sequentially. Just wanted to get some clarity on what is happening here, which are areas that you're spending on and how you're thinking about technology as a cost put in the entire business.

That's one. The second part is on the KRA business.

You're the market leaders there. The pricing there is significantly higher than the KYC, the CKYC business is there.

Now that the government is improving the quality of data on CKYC, do you see that as a risk for pricing or the KYC registration business overall? If you could give us some color there, that also would be very helpful.

Thank you.

On the first question on technology, see, as we grow in business, as I've said many times, it's similar to built-in infrastructure company. As we increase capacity, the costs have to grow to ensure that the latest technology is used.

There are newer products also which have been coming into play, which the regulator keeps on, basically, doing from time to time. There seems to be some cross connection.

Can you put yourself on mute? As we have grown from '23 to '25, the newer forms of technology, both on application, on hardware, network, and security, all four areas, we are trying to ensure that the latest products are put into play.

That's is the capacity-building process so that as the surge, in case if it happens, like we have seen in 2020, 2021, it becomes seamless for the market. It does not face any issues from the standpoint of people wanting to open newer accounts.

Also, the latest survey of SEBI is also saying that a lot of people, whilst have participated in the securities market, a lot of people have known and are willing to participate. There's a potential which is there.

In sync with that potential, we have to be prepared to prepare the necessary technology infrastructure to be in place so that in case if those volumes come into the market, it becomes seamless from that standpoint. On your second question, I'll ask Sunil to answer.

Hi, on the KRA business, you mentioned that CKYC is coming, CKYC is introducing 2.0 and there could be a risk to CVL. If you see in case of the security market where the KRAs are operating, we have totally validated data as against CKYC, which is yet to validate their data.

They have a larger number of records. Moreover, the KRAs hold a larger number of fields as compared to the CKYC.

Recently, there is also a consultation paper from SEBI where they have proposed other details like bank details, gender, bank details, occupation, et cetera, which comes as a part of client due diligence to be held in the KRA. Keeping that in mind, also there is a circular from the Ministry of Finance, Department of Revenue, where they've asked the KRAs to get connected with the CKYC so that any intermediary wanting to upload data into the CKYC can do it through the KRA, or he can do it directly.

Those options are available. Keeping that circular in mind, I feel that the KRAs are here to stay.

That's helpful. Just a follow-up, just a clarification on your first answer.

Thanks a lot for providing the clarity. Just wanted to understand from that capacity build, I do understand that with every year you need to build for the capacity.

Is the ramp up or the scale of ramp up mostly done, or should the scale of ramp up continue at this level? Again, considering the fact that how markets have been in the last one year.

The point is that as newer technology comes into play, there is, as we all know, really artificial intelligence also is coming into play, we would like to ensure that our infrastructure has the latest in-sync technology. Also, in other products like applications, security, et cetera, there are newer products which keep on coming.

It depends on the kind of innovations which are happening, which will entail in future whether this will continue. The process of ensuring that the seamless experience is there for all the participants is our intent.

All, basically, be able to lead their holdings, et cetera, in a very seamless manner is what is, basically, the intent.

Got it. Thank you.

My question is on the annual issuer charges. Obviously, on a YoY basis, we are seeing very strong growth here, and it has been a function of the higher additions and the rising folios.

If you can give the number of folios, because you used to give, what has been the exact number of folios if you can give that number? Also, it has also been helped by the unlisted company's addition.

Seeing the change in regulation that has happened 1st of December, where the definition of not-so-small companies have been changed, in that context, how do you see the unlisted addition behaving? Because that basically shortens the definition or, in terms of scope.

Like we are adding around 2,000 companies in a quarter, can we see a significant dip there in terms of the unlisted additions? This is my first questions.

I think, Amit, on the unlisted piece, again, it's not though the definition has become wider, but again, those conditions remain only when they want to raise capital or they want to transfer capital. Those are very circumstance-driven as to when they are mandated to be registered with us.

I think overall, we'll have to wait and watch. We don't give a futuristic outlook as to how we're going to see these numbers.

The intent is that we ensure that our systems are in place and the experience of the issuers is seamless so that more and more people, as and when they would want to join the depository fold, becomes easy for them too. For folio, I'll ask the CFO to answer.

Amit, the folio remains what we had disclosed in first quarter. It is 33.76 crore.

Okay. The folio number reset, obviously, will happen 31st of March.

With the number of IPOs coming in, because this has been a heavy IPO year, it is expected that maybe this folio number reset can be a higher number versus what we have seen last year, because the most of...

That we have to wait and watch for in the first quarter of the next year.

Okay. Sir, second question, if you can give the break-up of e-voting and e-CAS and also the drop that we have seen, because seasonally, e-voting is a weak quarter, and we have seen a drop there sequentially.

If you can give that number, and also in YoY terms also, the fall has been pretty sharp. Is it that on a YoY basis also, the adoption of e-voting has declined, or we are seeing loss of market share there, if you can give some color there?

Obviously, correspondingly to the decline in the e-voting, there used to be a decline in the other expenses as well. In this quarter, we have not seen that decline.

Can you explain what has led to the higher other expenses?

Sure. The CAS income that we have generated in this quarter is 12.78 crore, and e-voting income is at 5.23 crore.

See, normally, what happens that all e-voting income normally gets, accrued in second quarter of the financial year. In in last quarter, September quarter, we had accrued income of 19.77 crore that we had reported.

When you compare current quarter's income with YoY income of previous quarter, previous year, same quarter, we had achieved income of 4.71 crore in that quarter. Current quarter is, better off compared to same quarter of the previous year.

Okay. In terms of expenses, sir, the corresponding decline we are not seeing in terms of other expenses.

Other expense for e-voting?

No. In terms of the other expenses, we report, which is 62 which was 62 crores last quarter, which has come down to 60.6 crores in this quarter.

The decline of e-voting generally used to happen and we used to see the decline also corresponding cost also in the other expenses. Ex of the e-voting drop, the jump in other expenses is also pretty high.

Any one-offs there or anything that you want to highlight?

There are no one-off cost in comparison. If you look at overall other cost, it is in line with what our overall cost structure is.

For example, if we speak about KRA, then inter-KRA also has reduced. In terms of e-sign expense, it is also reduced.

E-voting is more or less in line with what income that we had generated in this quarter.

Okay. Sir, lastly, now the increase in terms of the overall spend is higher than the growth, and also the spend in technology seems to be pretty high, and it's not normalizing.

Is it fair to assume that we can ask for a issuer price hike, which is now pending for the last 10 years, and how the regulator is seeing to the proposal of having an issuer fee hike?

I think, Amit, as I've told earlier, we don't generally disclose the correspondence we've had with the regulator. I'm sure they are also seeing this, and at the appropriate time, the increase will come.

Sir. Thank you and all the best.

Thank you.

Thank you so much. Our

Hi, sir. Thanks a lot for the opportunity.

I would just like to quickly get clarity on one two set of questions. Just wanted to understand how is the insurance repository side of the business, and what is the projections going for in terms of the upcoming projects and the potential revenue contribution from that side of the business?

The second would be, as we can see, for the past year and half, and as a general position, that there is some softness that's prevailing in the capital markets in general in terms of the general market activity. With the commodities taking over and attracting a lot of investors right now.

Just wanted to understand how would you like to navigate or what plans in there to navigate and basically get through this phase of softness in general? The general long-term outlook should be good to go.

Thank you.

First question, I'll ask Latesh to answer, who's the CEO of insurance repository.

Hi. Latesh here.

From the insurance repository point of view, the operating revenue has been steady. As you typically see, JFM period is the crucial period.

We are trying to capitalize on this. Largely, we are in sync with the insurance industry growth.

As you would have seen the IRDA numbers, the insurance industry policy number growth has been more or less stagnant. It's not been increasing as expected.

Yes, within the same scheme of things, we are trying to increase our market share within this framework.

On your second question about commodities becoming the more popular, I think this is really a market dynamics. It keeps on changing as per changing circumstances, geopolitics, economic conditions, et cetera.

As a market infrastructure provider, we are continued to build on our systems, whether we have a great period or a lean period, because when the growth comes, it comes all of a sudden, like we've seen in the past three or four years. We need to be well-prepared because the infrastructure has to be well-prepared for any kind of growth.

How this will pan out in the overall scheme of things, I think India as a country is doing well. It is fundamentally strong, and that will get echoed in the necessary securities market and commodities market as per what the perception is of the entire securities market and commodities market.

I think it'll be difficult to predict what will happen when. We've seen that like any infrastructure company, if your infrastructure is well-prepared, is well done, when the growth comes, you are prepared to take on that growth.

That's the time you see a significant uptick in the revenue. The intent is to ensure that is a seamless infrastructure which is provided, and it is a continuous process of growth, continuous process of, really, evolution which you need to continuously do as we move forward.

I hope I have answered your question.

Sir. Thanks for providing me the clarity.

Yeah. Thank you.

Thank you for taking my question. My question is regarding the yesterday's news regarding the hike in the security transaction charges.

Could you share your views on how this might impact the CDSL revenue? This is my first question.

My second question is around the IPO and corporate action segment. Its revenue is around 2-3%, the growth has not been so promising.

Could you talk about the potential tailwinds you foresee for this segment going forward?

On the first one, there is no direct impact on the depository business. It's more on the trading side.

As futures and options is not a security which is normally kept in demat accounts, I don't see any perceived impact on CDSL's line of business as of now. The second question is on the IPO.

I think as I've said earlier that we are building our systems well so that whether there are a lot of large IPOs which are expected to come also. CDSL has the right infrastructure to ensure that it can cater to these large demands.

How much a road is used, we are similar to a road. How much a road is used depends on, basically, the traffic and other conditions.

The road provider has to ensure that the value proposition of that road continues to remain seamless. That is the way we are building our line of business.

Thank you, sir. Thank you for that.

Thank you.

Hi, sir. Good evening.

I have two questions. Firstly, with respect to the TER cuts for the mutual fund business, there has been also talks about reducing the fixed costs for the AMCs, such as KYC charges, especially on the smaller investments.

Do we foresee any changes in the or any revisions in the KYC charges for us in terms of the creation cost, which is 20 which is ₹20, and also on the fetching, which is ₹35, going ahead?

We don't generally give futuristic things, but I'll ask Sunil to answer that.

No, we are just said that in case there is any reduction in charges, we will inform the market accordingly. Yes, we'll all have to wait and watch.

Sure, sir. Sir, just one data-keeping question.

Can you give us the revenue from the unlisted company and the pledge income for this quarter?

I'll ask the CFO to answer.

Sure. The pledge margin pledge income in this quarter is 5.42 crore, and unlisted issuer income is 2.66 crore, and application processing income is 3.17 crore.

Sure, sir. Thank you.

Thanks.

Thank you for the opportunity. Sir, you just mentioned in unlisted income, 2.66 crores is the regular annual issuer income and 3.17 crores is the joining fees, what you earned in the quarter.

That's the right understanding, sir?

Yes.

Understood. Maybe one more data-keeping, then I have a couple of questions.

If you can even quantify your impairment cost in the quarter?

In the quarter, it is 4 crore on a standalone basis.

Understood. Sir, just want to understand at any DP level or a broker level, have you seen mass migration happening from your company to another company or you have got any intimation that the guys who were invariably working exclusive with you have even started considering to open from a risk management point of view maybe to two demat account or to work with two depositories?

Just wanted to understand whether there is any such kind of a development happened at your company level.

I think the number of demat accounts opened in each month-on-month is disclosed across both the depositories will show you. Also, we put out how many DPs are registered in each quarter new.

I would really urge you to look at those numbers also. That will show you the picture of where they are.

Finally, it is each DP's choice where they would like to see. Therefore, the value proposition to the earlier question that why we continue to invest in technology is to ensure that that value proposition remains intact, and The product will sell for itself when there's a value proposition which is put there.

Also, in terms of cost, we are 50 paise cheaper than that of our competition. It is the overall scheme of things which people will take into situation as to where they would like to open.

I think that numbers is something which really speaks for itself, we don't generally reveal as I think the question would be answered in that manner that the number of demat accounts opened at CDSL as well as NSDL will show it for itself that where the focus is.

Understood, sir. Sir, the reason why I asked this question was, sir, that on incremental basis, somehow maybe on outstanding basis, we still have a leadership, but on incremental basis, we've lost a bit of market share.

Is it due to either guys going for two two depositories, or there is a mass migration? That was the reason why I asked.

I understand the numbers speak about how the growth is happening. Given the incremental market share has dropped a bit, I was just asking from that perspective.

See, the incremental market share has dropped based on certain seasonal circumstances if some DP is facing slower growth in one or two months. Overall, if you see the numbers is ranging in that same range.

There has been no significant drop as I would see it as of now. Our intent, as I said, is to ensure, again and again, value proposition from a technology standpoint, from a service standpoint, to ensure that more and more people continue to remain with us.

Understood, sir. One more question on maybe again on KYC, because there is incrementally too much noise in the market that somewhere there kind of be a capping or on the KYC fetching income, especially, and probably number of fetch multiple times if it's done for the same KYC record, they could be capped or utilized in multiple ways.

Just wanted to understand, means do you expect any big regulatory change to come in KYC business, especially from a revenue capping or the charges capping or the amount of fetches can be done for the same KYC record?

I'll ask Sunil to answer that.

Currently, there's no capping for the same KYC record, primarily because there are different intermediaries fetching that record and they pay separately. Far as fetch is concerned, an intermediary fetches the record only once, and we charge him ₹35 for the lifetime.

He can fetch the record as many times as he would like to.

I hope that answers your question. Yes, sir.

If intermediary already has done, it can be considered a validation for the other intermediary, or no, he needs to do it again?

Obviously, no, why will one intermediary pay for another intermediary?

Understood, sir. Lastly, sir...

How do you explain like that? That will be a larger challenge, too.

No, yeah, I understand, sir. We were assuming that there will be one more intermediate layer where it will fetch and pass it on to other intermediaries and that intermediate layer will consider to be fetched once, naturally that funnel of number of fetches hitting your KYC business might come down.

Anything on those lines is what I was considering is happening or not.

See, the regulations are very clear that an intermediary has to fetch for itself, and no intermediary can share the KYC for financial gain. These two things are very clear in the KRA regulations.

In case any changes have to be done, the regulations have to be changed. Understood, sir.

Perfect. Lastly, can you give your employee count, both for standalone and consol?

I'll ask the CFO to answer. On

standalone basis, the employee cost is at

Headcount.

Number of people, number of people working, sorry.

Normally, we don't disclose employee count on a quarterly basis. We are disclosing in the financial annual report that we are publishing on year-on-year basis.

No, the reason again, sir, this question is asked because the employee cost has grown and even tech cost is going up. Is it we are hiring more people to overcome that tech cost and that's leading to the tech and employee cost to go up relatively?

If you compare quarter-to-quarter, it has remained the same. Now, if you compare same quarter of previous year, obviously, there will be incremental cost required to be incurred, isn't it?

The count will be available at the end of the financial year.

Okay. Sir, I understand that point.

My question was that, is it more due to hiring or more due to increments? That's the only thing which I wanted to confirm.

See, I think again, Sanket, you can just say in Hindi we say, "Aap phal khao, ped kyun gin rahe ho?" The important thing is that CDSL has to perform its role.

Now, how many employees, whether it is increasing, whatever is required to ensure that it remains in business, the value proposition remains, that is what is most critical. At the timeline when we are required to disclose at the end of the year, you will surely get the numbers.

Understood, sir. Thank you very much.

That's it from my side.

Thank you.

for taking my question. I had a question on the technology spend.

As another participant pointed out, the technology spend has grown a lot faster, it's gone from about 7% of revenue to 14%. Just looking backwards in terms of what this has enabled for us, could you give us some KPIs in terms of success rate on transactions or capacity of transactions that CDSL was able to handle as a result of the increasing investment intensity?

I think, Rohan, you've got to see the number of demat accounts growing quarter-on-quarter, month-on-month, quarter-on-quarter, year-on-year. Now, as the number of demat accounts grow, the number of transactions grow, the margin pledge transactions grow, the number of securities, new IPOs come in, that many more, basically, ISINs grow.

There are multiple facets, multiple touchpoints which are continuously increasing. The number of people who are entering the market is also growing.

It's a function of all this which has to be put into play when whilst how the technology has to keep in pace. Second is, there are newer ways on security side, on the application side, which make it easier, more seamless, with AI coming in also.

The technology has to keep in in step with all these newer reforms which are coming into play also. It's a combination of all these points which has to be put into play.

Also, there are newer requirements from SEBI's security standpoint. They've issued various circulars, the requirements are growing, those also have to be built in, executed.

I hope I've answered your question.

Yeah. Is it fair to assume that this is the floor we have to spend at least this much on an ongoing basis on technology to ensure business continuity?

There is no simple answer to this because, see, the market is changing continuously. What are the new products which are going to come in the future, we also don't know.

What those new products will entail in terms of newer processes, if there are new types of products, transactions which are coming into play, which are required by SEBI, et cetera, or by the wider, really, ecosystem, it's a function of all this whether the technology cost will remain what it is or it will grow. It is not a simple line because the line in which we are in, technology and human resource is the raw material, work-in-progress, and finished goods.

It has to continuously evolve as the market conditions change. Those market conditions are something which continuously will be evolved.

There is no simple answer to this whether it will remain same, whether this is a floor, et cetera. It all depends on the circumstances.

Okay. Put a different way, is there a portion of this technology spend that is a variable cost and a portion of this technology spend that is sort of an investment in the future?

Just trying to understand how this moves as business scales.

Any technology system has costs which are on a routine basis and one which is building for the future also. That's how good technology systems are built.

There is no fixed percentage, and we don't reveal also that percentage because it's a continuously evolving process. Because what was seen to be routine three years or five years ago has changed the way we actually perform now, and that will again change in the next two or three years.

It's a continuous process of evolution, and therefore, there is no simple, firm answer to that.

Sure. No, I understand.

Just as a piece of feedback from the perspective of people modeling the operations of CDSL, I think it would help if we could get slightly more disclosure in terms of what your fixed costs are in terms of technology, since it has scaled significantly over the last few years. If we could get some sense of what portion is fixed, variable, et cetera, and what is investment for the future, I think that'd be really helpful for us as analysts to understand the company going ahead.

The line of business which we are in, it's difficult to predict the fixed cost and the variable cost. It all depends on circumstances, and hence, we are not putting.

It's not that we don't want to put it out. It's because of the kind of expenses which we are having, it is tough for us to put it out what is form fixed and what is form variable, because there are lines which goes beyond fixed and variable also.

Hence, we are not putting out. Whatever best we can put out, and we have been very transparent in whatever we have to put out, is what we're putting out there.

All right, sir. Thank you.

That's it from my end.

Thank you.

Hello. Can you hear me?

Yeah. Sir, in the technology cost, we don't include the employees who are related to technology in this, or is it only related to software and hardware spend that we do?

The employee cost is in the employee cost, which includes all employees, including technology employees. The technology cost is of technology.

Okay. Technology cost is just the hardware and the software spend here, right?

If you can give some breakup in terms of what is hardware, what is software here, and also in terms of because the rise has been more on the subsidiary side in this quarter, if I do just consol minus standalone. The rise in the subsidiary has been significant.

Is it that most of the investments are going in subsidiary, or is it across standalone and CVL?

You've seen the numbers what is standalone versus what is in consolidated. As I've said earlier, infrastructure is a line of business that as you reach a certain scale, you need to invest in that.

The investment is in a larger proportion to the growth which you see. It's not commensurate with the growth you're seeing because it's a kind of building a road.

Now, the road cost has to be built. If you have to build from point A to B, that road has to be built.

Now, how many cars are going, if it's five cars, also you have to build the same road, if with 50 cars, also to build the same road. As that 50 becomes 500, the quality of the load, et cetera, of the road has to grow, and that cost is significantly higher.

That is the same way we are investing in our subsidiary, again to ensure that the value proposition remains intact and the clients and the customers who come to us feel that it is feeling the value proposition of whatever they are doing with us.

Okay. No, sir, that I understand, sir.

Just in terms of numbers, you can break down this 42 crores that you have spent, is it only on licenses, opex, because obviously this is opex, but if you can give some more color in terms of because we're not including hardware spends here, right, because it is mostly capitalized?

We don't give that, basically, breakup because, again, is not in a type of business which we are in, it is difficult to give that breakup, we don't give that.

Sir. Thank you.

Thank you.

Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Our next question comes from the line of Muskan Chopra from Motilal Oswal Financial Services. Please go ahead.

Am I audible?

Yes, Muskan, you are.

I just wanted to know, can you give the financial data regarding CVL? Actually, it wasn't clear in the start.

Can you repeat your question?

Financial data regarding CVL.

CVL, yeah.

Financial data in the sense?

The total income, PAT, whatever you gave, it wasn't actually very clear in the beginning.

Just a minute. For the nine-month period December 2025, revenue from operations was 132 crores compared to 189 crores in the nine-month FY '25.

Total income was 145 crores compared to 206 crores in the previous year. Total expenses was 90 crores compared to 83 crores in the previous year.

Profit before tax was 55 crores as against 122 crores in the previous year. Profit after tax was 42 crores as compared to 91 crores in nine-month FY '25.

I hope that answers your question.

Yeah. Thank you.

Welcome.

Thank you all for your questions. We have all answered as per what is up to the best of our ability.

I hope we have answered your questions. Thank you, and stay safe.