# CDSL vs CAMS: The Invisible Duopoly Powering India's Investment Boom

> Every demat account, every mutual fund folio — these two collect a toll. A head-to-head thesis on India's capital market infrastructure giants.

**Companies**: C D S L, Cams Services
**Sectors**: Capital Markets
**Published**: 2026-03-29
**Last Updated**: 2026-03-30
**Source**: https://thesisloop.ai/thesis/ee2bb4ef-d73b-4927-a4fe-76c609014062

## Score Overview

| Company | Management | Business Model | Future Growth | Risk |
|---------|-----------|---------------|--------------|------|
| C D S L | — | 58/100 | 69/100 | 60/100 |
| Cams Services | — | 74/100 | 65/100 | 44/100 |

## C D S L (NSE:CDSL)

**Sector**: Capital Markets | **Industry**: Depositories, Clearing Houses and Other Intermediaries

### Management Credibility

- **[CATALYST] DEPA and Account Aggregator Linkage** (NEUTRAL): CDSL is monitoring the Account Aggregator framework and expects to see how it pans out as a Financial Information Provider (FIP) over the next few quarters. (+1 more commitment)
  > We have to wait and watch over the next few quarters to see how it really pans out.
- **[CATALYST] SEBI Cyber Resilience Requirements** (NEUTRAL): The company intends to maintain technology investments at a historical run rate of approximately 10% to 12% of revenue to ensure platform quality. — target: 10% to 12% of revenue (+1 more commitment)
  > But if you go by the past trend, they have been ranging in around that range about 10% to 12%, but I think the important thing is from an intent point of view. We would like to ensure that the platforms of CDSL have the best-in-class technology.
- **[CATALYST] Full Demat Mandate Expansion** (POSITIVE, MET): Management confirmed that the regulatory requirement for small/unlisted companies to dematerialize their capital has been implemented, leading to significant revenue and company additions in Q2 FY25. (4 met, 1 in progress across 5 tracked commitments)
  > On the second question on the unlisted company. As I have said in my last investor call also, the deadline is September 2024. And it has conditions of private companies, which have a turnover of INR40 crores or share capital of INR4 crores. But only when these companies would like to either raise ca
- **[CATALYST] Multi-Asset Clearing Growth** (NEUTRAL): The company is facilitating the electronic ownership and transfer of commodity assets through CCRL.
  > Facilitates ownership & transfer of commodity assets in electronic mode. It serves commodity exchanges and wider market beyond.
- **[METRIC] Demat Account Base and Activity** (POSITIVE, MET): The company successfully completed the pan-India 25-cities financial literacy campaign as planned, with a specific focus on border cities and armed forces. (1 met across 1 tracked commitment)
  > And therefore, the true-to-label cost whilst it's a regulatory nudge is also an important part of the strategy of CDSL to ensure that there's a long-term sustainable participation by more and more new investors coming into the securities market fold and into the demat fold, so that the percentage of
- **[METRIC] Monthly New Demat Accounts** (POSITIVE, IN_PROGRESS): The company continues to show strong growth in demat accounts, crossing the 14.50 crore milestone in 2024, indicating steady progress toward higher population penetration. (1 in progress across 1 tracked commitment)
  > CDSL completed a pan-India 25-cities financial literacy campaign, 21 of which were border cities & many of these events were for armed forces as per our focus on Empowering our Protector
- **[PRINCIPLE] Transaction vs Annuity Revenue Mix** (NEUTRAL, MET): The single charge mandate from SEBI became effective on October 1, 2024. Management clarified that the Q2 FY25 results (ending September) do not yet reflect this pricing cut, which will start impacting financials from Q3 FY25. (1 not yet due, 2 met, 1 in progress across 4 tracked commitments)
  > And you will be able to see a full quarter impact from the next quarter onwards.
- **[PRINCIPLE] Duopoly Market Structure Advantage** (NEUTRAL): CDSL is maintaining a price advantage by keeping costs INR 0.50 lower than the competition to drive value proposition and account retention. — target: INR 0.50 cheaper than competition
  > Also, in terms of cost, we are INR0.50 cheaper than that of our competition. So, it is the overall scheme of things, which people will take into consideration as to where they would like to.
- **[PRINCIPLE] KYC Registry Monopoly Position** (POSITIVE, EXCEEDED): CDSL continues to dominate the market with a 79% share of total demat accounts in India, reaching 14.65 crore registered investor accounts. (5 exceeded across 5 tracked commitments)
  > And once they start off in this financial, year, we will see more revenues coming from there. On the eSign business, the way it functions is that we do not tie up with the end customer who is a participant or the broker, but there is a third-party service provider, who gives the entire onboarding so
- **[PRINCIPLE] Settlement Technology Backbone** (NEGATIVE, MISSED): Standalone IT costs for Q2FY25 were INR 18 crore against an operating income of INR 248 crore, representing approximately 7.2% of revenue, which is below the guided 10-12% range. (1 missed, 1 in progress, 2 revised, 1 met across 5 tracked commitments)
  > Second is there are newer ways on security side, on the application side, which make it easier, more seamless with AI coming in also. So, the technology has to keep in step with all these newer reforms which are coming into play also.
- **[TREND] Demat Growth Rate Moderation** (POSITIVE, MET): Management successfully completed the pan-India 25-cities financial literacy campaign, with 21 of those being border cities, specifically focusing on armed forces. (2 met across 2 tracked commitments)
  > CDSL Neev@25 CDSL completed a pan-India 25-cities financial literacy campaign, 21 of which were border cities & many of these events were for armed forces as per our focus on Empowering our Protector
- **[TREND] Corporate Actions Digitization Growth** (POSITIVE, MET): The company has successfully launched the CDSL IPF investor education website in 12 languages as planned. (2 met across 2 tracked commitments)
  > SEBI Chairperson Smt. Madhabi Puri Buch launched CDSL’s new Multi-Lingual eCAS services : eCAS is now available in the preferred language of the investor
- **[TREND] Non-Securities Repository Diversification** (NEUTRAL, IN_PROGRESS): The integration is complete as the CEO of the Insurance Repository discussed current operations and market share efforts following the expected go-live period. (2 met, 3 in progress across 5 tracked commitments)
  > Yes, the LIC integration is work in progress. We are expecting the integration to happen soon... We are actually betting to increase the market share in the coming quarters.
- **[TREND] Same-Day Settlement Rollout** (NEUTRAL): The company is pre-planning technology investments to handle potential volume growth and new product requirements like T+0 settlement.
  > So, we will have to kind of pre-empt also the potential de-growth. So, to ensure that the technology, but it takes time to build technology. And therefore, it has been all around... So you need to really preplan in future in kind of really in advance as to how you will be investing in this.
- Management confirmed the completion of the pan-India 25-cities financial literacy campaign, with 21 of those being border cities, specifically focusing on the armed forces. (2 met, 1 exceeded across 3 tracked commitments) (POSITIVE, MET)
  > So, we've continued to maintain our policy guidance on dividend payout at 60% of our operating profits.

### Business Model

- **[METRIC] Demat Account Base and Activity** (POSITIVE, Change: EXPANDING): The network effect moat is expanding as the total demat account base crossed the 15 crore milestone, representing a 32% increase in the total account base over the last year. (5 expanding)
  > I'm glad to report that as a depository industry, we have crossed 21.6 crores Demat accounts and CDSL saw more than 75-+ lakh accounts opened during this quarter, bringing our total to 17.27 crores Demat accounts, maintaining our 80% share.
- **[METRIC] Daily Settlement Throughput** (NEUTRAL, Change: STABLE): Transaction charges have seen a significant contraction in the latest quarter compared to the previous year, reflecting a slowdown in market trading activity. (4 contracting, 1 stable across 1 engine)
  > Transactions Charges Q3FY26: 60; Q3FY25: 59
- **[PRINCIPLE] Transaction vs Annuity Revenue Mix** (POSITIVE, Change: EXPANDING): Annual Issuer Income continues to expand as the largest and most stable revenue stream, growing 33.8% year-over-year in the final quarter. (5 expanding across 1 engine)
  > Annual Issuer Income Q3FY26: 113; Q3FY25: 81
- **[PRINCIPLE] Duopoly Market Structure Advantage** (NEUTRAL, Change: STABLE): The company maintains its competitive pricing moat, remaining INR 0.50 cheaper than the competition to leverage economies of scale. (2 stable)
  > CDSL saw more than 75-+ lakh accounts opened during this quarter, bringing our total to 17.27 crores Demat accounts, maintaining our 80% share.
- **[PRINCIPLE] KYC Registry Monopoly Position** (NEGATIVE, Change: CONTRACTING): KYC and online data revenues through CVL grew significantly on an annual basis, although management noted a slowdown in the final two quarters due to lower account opening volumes. (2 expanding, 3 contracting across 2 engines)
  > Online Data Charge Q3FY26: 49; Q3FY25: 56
- **[TREND] Demat Growth Rate Moderation** (NEGATIVE, Change: CONTRACTING): KYC revenue is experiencing a sequential decline, now representing 13% of total consolidated revenue, primarily due to lower account opening volumes and fewer KYC 'fetches'. (1 contracting)
  > It is around 13% in the current quarter... the drop in income was primarily because of market conditions where the number of accounts were lower, which resulted in lower KYC fetches.
- **[TREND] Corporate Actions Digitization Growth** (POSITIVE, Change: EXPANDING): Income from IPOs and Corporate Actions remained stable with a slight downward fluctuation in the final quarter compared to the prior year. (1 stable, 1 contracting, 3 expanding across 2 engines)
  > IPO / CA Income Q3FY26: 59; Q3FY25: 58
- **[TREND] Non-Securities Repository Diversification** (POSITIVE, Change: EXPANDING): CDSL is expanding its regulatory footprint into non-securities through its subsidiaries, including insurance repositories (CIRL) and commodity repositories (CCRL). (4 expanding across 1 engine)
  > From the Insurance Repository point of view, the operating revenue has been steady... we are trying to increase our market share within this framework.
- Other Income includes miscellaneous revenue streams and investment gains. — Other Income (15.6% revenue share) (NEUTRAL)
  > Other Income Q3FY26: 52; Q3FY25: 44

### Future Growth

- **[CATALYST] SEBI Cyber Resilience Requirements** (POSITIVE, Trend: STEADY): IT costs are trending upward as a percentage of total expenses, indicating continued investment in technology infrastructure and cyber resilience. (2 steady across 2 signals)
  > IT Cost ... Q1FY25 20
- **[CATALYST] Full Demat Mandate Expansion** (POSITIVE, Trend: ACCELERATING): The unlisted company segment is a growing contributor, with 3,486 new companies admitted this quarter alone, bringing the total to over 20,000. (1 accelerating across 1 signal)
  > In this quarter, we have admitted 3,486 companies in unlisted space... it would be in the range of 20,000 plus.
- **[METRIC] Demat Account Base and Activity** (POSITIVE, Trend: ACCELERATING): The total demat account base has shown significant growth, increasing from 8.8 crores to 12.5 crores year-on-year, representing a 42% increase. This indicates a strong and accelerating trend in retail market participation. (2 accelerating, 3 steady across 5 signals)
  > CDSL saw more than 75-+ lakh accounts opened during this quarter, bringing our total to 17.27 crores Demat accounts
- **[METRIC] Monthly New Demat Accounts** (POSITIVE, Trend: ACCELERATING): The pace of new account additions reached a record high in Q4 FY24, indicating accelerating retail participation. (5 accelerating across 5 signals)
  > CDSL Net A/c opened in the quarter (in lakhs) ... Q3FY26 76
- **[METRIC] ARPU of Demat Accounts** (NEUTRAL): CDSL is seeing a significant increase in its 'Folio' count, which represents the number of unique company-investor records it manages, reaching 33.76 crores. — Folio Count: Strong Y-o-Y growth
  > The folio remains what we had disclosed in first quarter, it is 33.76 crores. ... Obviously, on a Y-o-Y basis, we are seeing very strong growth here. And it has been a function of the higher additions and the rising folios.
- **[PRINCIPLE] Transaction vs Annuity Revenue Mix** (POSITIVE, Trend: ACCELERATING): The number of companies (issuers) registered with CDSL is accelerating, with the largest quarterly jump occurring in the most recent period (Q1FY25). (5 accelerating across 5 signals)
  > So, is it fair to assume that we can ask for an issuer price hike, which is now pending for the last 10 years? ... I'm sure they are also seeing this probably at the appropriate time, the increase will come.
- **[PRINCIPLE] Duopoly Market Structure Advantage** (NEUTRAL): CDSL continues to dominate the Indian depository market, maintaining a massive 80% share of all Demat accounts in the country. — Demat Account Market Share: Steady
  > CDSL saw more than 75-+ lakh accounts opened during this quarter, bringing our total to 17.27 crores Demat accounts, maintaining our 80% share.
- **[PRINCIPLE] KYC Registry Monopoly Position** (NEUTRAL): The KYC business (CVL) is facing a temporary slowdown in revenue, though management believes its validated data gives it a long-term advantage over government registries. — CVL Revenue from Operations: -30% vs 9MFY25 (+1 more signal)
  > So for the 9-month period December '25, revenue from operations was INR132 crores compared to INR189 crores in the 9MFY'25.
- **[PRINCIPLE] Settlement Technology Backbone** (POSITIVE, Trend: ACCELERATING): Management is aggressively front-loading technology and infrastructure costs to prepare for higher transaction volumes and new settlement cycles like T+0. (5 accelerating across 5 signals, 2 leading indicators)
  > So, it gone from about 7% of revenue to 14%. ... 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
- **[TREND] Demat Growth Rate Moderation** (NEGATIVE, Trend: DECELERATING): While 56 lakh accounts were opened this quarter, management acknowledged a general incremental slowdown in account openings compared to the explosive growth of the past 5 years. (1 decelerating across 1 signal)
  > I think KYC income, we all know that there is a bit of slowdown in Demat account opening incrementally compared to what we witnessed in the past.
- **[TREND] Corporate Actions Digitization Growth** (POSITIVE, Trend: ACCELERATING): The issuer base is expanding rapidly, particularly in the unlisted space due to new regulatory mandates, with over 3,400 companies added in a single quarter. (2 accelerating, 2 steady across 4 signals, 1 leading indicator)
  > So like we are adding around 2,000 companies in the quarter. ... those conditions remain only when they want to raise capital, or they want to transfer capital.
- **[TREND] Non-Securities Repository Diversification** (POSITIVE, Trend: ACCELERATING): The insurance repository business (Centrico) is showing strong growth of 30% year-over-year, driven by new customer sign-ups and the launch of an online portal. (1 accelerating, 4 new trend across 5 signals)
  > From the Insurance Repository point of view, the operating revenue has been steady. And as you typically see, Jan, Feb and March period is the crucial period. So, we are trying to capitalize on this.
- The total number of unlisted companies admitted to CDSL has crossed 20,000, with over 3,400 added in a single quarter. This structural shift toward digitizing all corporate securities provides a long-term growth runway for issuer services. (POSITIVE)

### Risk Assessment

- **[CATALYST] SEBI Cyber Resilience Requirements** (NEGATIVE, Risk: HIGH): Regulatory costs remain a significant and growing expense. SEBI/IPF charges rose to ₹13 crore in Q1FY26 from ₹11 crore in Q1FY25 on a standalone basis. (1 stable, 4 intensifying)
  > SEBI/IPF: Q3FY25 15, Q4FY25 10, Q1FY26 13, Q2FY26 16, Q3FY26 15
- **[METRIC] Monthly New Demat Accounts** (POSITIVE, Risk: MODERATE): The pace of new account additions has slowed significantly, dropping from 118 lakhs in Q2FY25 to 92 lakhs in Q3FY25 and reaching a low of 64 lakhs in Q4FY25. (2 intensifying, 3 easing)
  > But on an incremental basis, we lost a bit of market share. So, is it due to either guys going for 2 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. But given the incremental market share has dropped a bit
- **[METRIC] Daily Settlement Throughput** (NEGATIVE, Risk: HIGH): Intensifying. Combined average daily turnover at BSE and NSE fell by 18% compared to the September 2024 quarter, directly impacting market-driven revenue streams. (2 intensifying)
  > And second would be, as we can see for the past 1.5 years and as a general position that there is some softness that is prevailing in the capital markets in general in terms of the general market activity and with the commodities taking over and attracting a lot of investors right now.
- **[PRINCIPLE] Transaction vs Annuity Revenue Mix** (NEGATIVE, Risk: HIGH): Transaction charges have declined for two consecutive quarters, falling from ₹83 crore in Q2FY25 to ₹59 crore in Q3FY25 and further to ₹49 crore in Q4FY25. (2 intensifying, 2 stable, 1 easing, 1 high-severity)
  > Transactions Charges: Q3FY25 59, Q4FY25 49, Q1FY26 62, Q2FY26 59, Q3FY26 60
- **[PRINCIPLE] Duopoly Market Structure Advantage** (NEUTRAL): Management defended their position, attributing their success to a 'centralized architecture' and 'lower cost of holding' which appeals to discount brokers, suggesting the competitive threat is being managed. (1 stable)
  > So, from an infra standpoint, we are a centralized architecture from a cost of holding that infra is lower. There is a variety of measures which has caused this advantage too.
- **[PRINCIPLE] KYC Registry Monopoly Position** (NEUTRAL, Risk: MODERATE): While TER wasn't explicitly discussed, KYC revenue (CVL) showed significant weakness, dropping to INR 43.06 crores from INR 64.37 crores YoY. Management attributed this to 'market conditions' and lower account opening volumes affecting 'fetches'. (1 intensifying, 1 easing, 3 stable)
  > The second part is on the KRA business, you're the market leaders there. The pricing there is significantly higher than the CKYC business there. And 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?
- **[PRINCIPLE] Settlement Technology Backbone** (NEGATIVE, Risk: HIGH): Technology costs remain a significant and continuous expense as the company prioritizes modernization and security over short-term margin expansion. Management refused to categorize these as one-time, suggesting a sustained high-cost environment. (3 intensifying, 2 stable, 1 high-severity)
  > So, it gone from about 7% of revenue to 14%. So just looking backwards in terms of what this has enabled for us, could you give us some sort of, some KPIs in terms of success rate on transactions or capacity of transactions that CDSL is able to handle as a result of the increasing investment intensi
- **[TREND] Demat Growth Rate Moderation** (NEUTRAL): While the total base grew to 15.29 crore, management acknowledged a 'muted response' in the fourth quarter regarding demat account growth and market volumes. (1 stable)
  > overall, the market volume, delivery volumes, growth in demat account has all seen a muted response we've seen in the fourth quarter.
- **[TREND] Corporate Actions Digitization Growth** (NEUTRAL, Risk: LOW): Regulatory changes regarding the definition of 'small companies' and mandates for unlisted companies to join the depository could lead to a dip in new company registrations if the scope of the mandate is narrowed. [REGULATORY]
  > And also it has also been helped by the unlisted companies addition but seeing the change in regulation that has happened 1st of December, where the definition of not so small companies have been changed? So, in that context, how do you see the unlisted addition on behaving because that basically sh
- **[TREND] Non-Securities Repository Diversification** (NEUTRAL, Risk: MODERATE): The insurance repository business is facing stagnant growth in the number of new policies being issued across the industry, limiting the potential for revenue expansion in this diversification segment. [DEMAND]
  > 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.
- Consolidated Net Profit has declined for two consecutive quarters, falling from ₹162 crore in Q2FY25 to ₹130 crore in Q3FY25 and ₹100 crore in Q4FY25. (5 intensifying) (NEGATIVE, Risk: MODERATE)
  > Consolidated net profit for the 9 months is achieved at INR375 crores as against INR426 crores for the corresponding 9 months.

### Scenario Analysis

- No significant impacts identified (POSITIVE)
  > So, I think this is really a market phenomenon dynamic, it keeps on changing as per changing circumstances, geopolitics, economic conditions, etc. As a market infrastructure provider, we are continuing to build on our systems, whether we have a great period or a lean period because when the growth c
- 7 positive impacts identified; 1 negative impact identified (POSITIVE)
  > Second is there are newer ways on security side, on the application side, which make it easier, more seamless with AI coming in also. So, the technology has to keep in step with all these newer reforms which are coming into play also.

## Cams Services (BSE:543232)

**Sector**: Capital Markets | **Industry**: Depositories, Clearing Houses and Other Intermediaries

### Management Credibility

- **[CATALYST] DEPA and Account Aggregator Linkage** (POSITIVE, MET): CAMSfinserv (Account Aggregator) has shown rapid market share gains, reaching 17.5% monthly market share by July 2024, up from <1% in April 2023. (2 in progress, 1 met across 3 tracked commitments)
  > I'm expecting that in FY'25, account aggregator will also start making its presence felt in terms of making at least some increment to company financials, very small, but it will do that.
- **[CATALYST] SEBI Cyber Resilience Requirements** (NEUTRAL): Total planned capex for the next year is approximately INR 170 crores. — target: INR 170 crores
  > So I expect overall from a capex perspective, we will spend around INR100 crores on the overall -- meaning on the rearchitecture part of it, and we'll spend another INR70 crores on the other capex part of it.
- **[METRIC] ARPU of Demat Accounts** (NEUTRAL, MET): The yield compression has materialized as guided, with a 4% drop in yield quarter-on-quarter in Q4 FY25, and a total 6-7% drop for the full year. (2 met across 2 tracked commitments)
  > So it will not be double of what it is now, it's not going to be a depletion like that, but it's definitely going to be higher than the 3.5% that we are seeing historically to be the year in depletion.
- **[METRIC] Daily Settlement Throughput** (POSITIVE, EXCEEDED): The CAMSPay (Payment Aggregator) business significantly outperformed the 60% growth target, delivering 85% year-on-year revenue growth for the quarter. (1 exceeded across 1 tracked commitment)
  > Beyond mutual funds, CAMSPay revenue grew 85% year-on-year for the quarter.
- **[PRINCIPLE] Transaction vs Annuity Revenue Mix** (POSITIVE, MET): Non-MF revenue share currently stands at 12.5%. Management has reiterated the 20% target but adjusted the internal timeline to 2-3 years from now. (1 in progress, 1 revised, 3 met across 5 tracked commitments)
  > So, as I said last time, we will have at least an 18-month of stable prices where there are no big renegotiations happening or repricing happening or even renewals happening
- **[PRINCIPLE] KYC Registry Monopoly Position** (POSITIVE, MET): CAMS KRA delivered 56% Y-o-Y revenue growth in Q2 FY25, indicating strong progress toward the annual target. (2 in progress, 1 exceeded, 1 met across 4 tracked commitments)
  > 50 Cr. in FY 25
- **[PRINCIPLE] Settlement Technology Backbone** (NEUTRAL): Management plans to maintain a consistent quarterly investment run rate for new platform development. — target: INR 7 crores per quarter (+3 more commitments)
  > We do not have -- we continue to invest in the products, as I said, the run rate is around INR7 crores a quarter is what we invest in the new platforms.
- **[TREND] Non-Securities Repository Diversification** (POSITIVE, EXCEEDED): Management reported that the Non-MF Revenue share grew from 10% in FY '23 to 13% in FY '24, representing a 3% increase in share, which exceeds the 2% annual target. (3 exceeded, 2 met across 5 tracked commitments)
  > This quarter, it's 13.5%, so it scaled up about 2.5%, which we have said that we'll be happy doing 2% every year, so as well into non-MF
- The company reported an EBITDA margin of 46.9% for Q2 FY25, surpassing the upper end of the guided 45-46% range. (4 exceeded, 1 met across 5 tracked commitments) (POSITIVE, EXCEEDED)
  > However, we will work to kind of keep it within range bound around 45% to 46%.

### Business Model

- **[CATALYST] DEPA and Account Aggregator Linkage** (POSITIVE, Change: EXPANDING): CAMSPay showed high growth momentum, scaling from a sub-INR 30 Cr business two years ago to nearly INR 70 Cr this year, with a target of INR 100 Cr next year. (1 expanding)
  > CAMSPay used to be under INR30 crores business 2 years back. They scale from INR30 crores to INR50 crores... close to INR70 crores this year.
- **[METRIC] Demat Account Base and Activity** (POSITIVE, Change: EXPANDING): CAMS maintained its dominant market share at 68% of industry AUM, which crossed the Rs. 52 lakh crore milestone. Equity net sales market share increased to 69%. (2 expanding)
  > Market share remains at about 68%... Net equity sales market share grew to 69% from 65%
- **[PRINCIPLE] Transaction vs Annuity Revenue Mix** (POSITIVE, Change: EXPANDING): MF revenue continues to be the primary engine, growing 25.2% YoY for the full year, though it saw a slight 5.1% sequential dip in Q4 due to guided price adjustments. (4 expanding)
  > MF revenue grew by 25.2% YoY
- **[PRINCIPLE] Duopoly Market Structure Advantage** (POSITIVE, Change: EXPANDING): CAMS maintained its dominant market leadership with a ~68% share of Quarterly Average Assets Under Management (AAuM), successfully retaining 26 out of 51 AMCs. (1 stable, 1 expanding)
  > CAMS – Market Share (based on Quarterly AAuM) ~68%*
- **[PRINCIPLE] Settlement Technology Backbone** (POSITIVE, Change: EXPANDING): The company is expanding its technology moat through AI-centric solutions via Think360 AI and the launch of Bima Central, which saw a 55% growth in user base this quarter. (4 expanding, 1 shifted)
  > Headcount wouldn't have grown 5%, while assets are 5x, transactions are over 5x... automation in the base in general has been a very remarkable success story.
- **[TREND] Non-Securities Repository Diversification** (POSITIVE, Change: EXPANDING): Non-MF revenue share remained stable at 13% for the full year but showed strong momentum in Q4, reaching 13.7% of total revenue, driven by an 85% YoY surge in CAMSPay. (4 expanding, 1 contracting)
  > Non-MF Revenue 15.8% YoY; Share of Non-MF revenue@ 13.7% of overall revenue
- MF revenue grew 7.2% year-over-year, reaching 87% of total revenue (Asset-based 74.3% + Non-asset 12.7%), maintaining its position as the primary engine despite a slight 0.6% sequential dip in total revenue. (4 expanding, 1 stable across 2 engines) (POSITIVE, Change: EXPANDING)
  > The MF revenue grew on the back of the asset growth as well as the stable yields to 3.3% quarter-on-quarter. And the non-mutual fund revenue, it was almost 5% quarter-on-quarter and 24-plus percent, almost 25% year-on-year.

### Future Growth

- **[CATALYST] Multi-Asset Clearing Growth** (POSITIVE, Trend: STEADY): The company is maintaining a steady flow of new business wins in the Alternatives segment, securing 57 new mandates in the current quarter. (1 steady across 1 signal)
  > I think this time, 21% year-on-year revenue growth has the highest number of quarterly wins, 57 new mandates. So this covers everything that we do, includes WealthServ, includes GIFT city and includes the base AIF and PMS.
- **[METRIC] Demat Account Base and Activity** (POSITIVE, Trend: ACCELERATING): CAMS is seeing a steady and significant gain in equity market share, with equity net sales share reaching 75% for the full year, up from 65% in FY23. (3 steady, 1 accelerating across 4 signals)
  > Within this, equity assets, a very, very handsome number crossed INR30 lakh crores for us. Market share... is crept up to 66.4%. ...And like the chart says, 70 basis points up year-on-year.
- **[METRIC] Monthly New Demat Accounts** (NEUTRAL): CAMS has a strong pipeline of new Mutual Fund clients (AMCs) expected to go live in the coming year, which will drive future revenue.
  > So I think the 4 which we are carrying forward from the last year into this year, and maybe the 2 or 3 which we might win from now to June. So I will not be surprised if we take another 5 to 6 live this year.
- **[METRIC] Daily Settlement Throughput** (POSITIVE, Trend: ACCELERATING): Profitability margins are accelerating as the company scales. Operating EBITDA margins have climbed from 44.8% to 47% over the last year, driven by the ability to handle higher transaction volumes (up 56% YoY) with efficient cost management. (1 accelerating across 1 signal)
  > OP.EBITDA & OP. EBITDA in %: Q3 FY24 44.8%, Q2 FY25 46.9%, Q3 FY25 47.0%
- **[PRINCIPLE] Transaction vs Annuity Revenue Mix** (POSITIVE, Trend: ACCELERATING): CAMS has seen an acceleration in equity AUM share, gaining 100 basis points to reach 66% as its equity assets grew significantly faster than the broader industry. (3 accelerating, 1 steady across 4 signals)
  > So equity assets grew almost 59.4%, much ahead of the rest of the industry of 53.5%. This then defined a share gain in equity AUM... up about 100 basis points up to about 66%.
- **[PRINCIPLE] Duopoly Market Structure Advantage** (POSITIVE, Trend: ACCELERATING): CAMS is demonstrating accelerating growth in equity market share, outperforming the rest of the industry in asset growth and net sales capture. (4 accelerating, 1 steady across 5 signals)
  > Recorded solid performance in equity assets with 59.4% growth on Y-o-Y basis, vs. 53.5% for rest of industry. This share gain of nearly 100 basis points has driven Equity AuM market share to ~66%.
- **[PRINCIPLE] Settlement Technology Backbone** (POSITIVE, Trend: ACCELERATING): Margin expansion is accelerating beyond the company's long-term goal of 1% annual improvement, reaching nearly 47% in the current quarter. (2 accelerating across 2 signals, 2 leading indicators)
  > On the compliance implementation, you would have seen the press releases, etcetera, on CAMS Lens... That product is completely ready. We announced this sometime in November. It is being used internally. We'll open it for the marketplace.
- **[TREND] Non-Securities Repository Diversification** (POSITIVE, Trend: ACCELERATING): Non-MF revenue growth is accelerating, reaching 13.5% of total revenue compared to 11% in the previous year, driven by 52% YoY growth in the segment. (5 accelerating across 5 signals)
  > The interesting part is that in the next 4 to 5 years, we are sure the way things are going, that this non-MF will be at least INR500 crores book for us in about 5 years. It continues to grow INR40 crores to INR50 crores a year.
- Expansion in GIFT City is accelerating with a larger office being set up and a significant increase in the team size to handle 17 current clients and expected ramp-up. (5 accelerating across 5 signals, 1 leading indicator) (POSITIVE, Trend: ACCELERATING)
  > What is also remarkable is that percentage profit after the labour code adjustment... is now at 46%. You will remember that this was 43% and some change about 4 quarters -- 3 quarters back.

### Risk Assessment

- **[CATALYST] DEPA and Account Aggregator Linkage** (POSITIVE, Risk: MODERATE): The risk is EASING as these segments are showing explosive growth. CAMSfinserv (Account Aggregator) revenue grew 92% and CAMS NPS grew 111% in FY25. While specific profitability per unit isn't disclosed, the massive jump in market share (from 8.6% to 11.6% for AA) suggests they are rapidly approaching the scale needed for breakeven. (3 easing, 1 stable)
  > From there, the smallest ones are loss-making because it takes a revenue line of about anywhere between, let's say, INR12 crores to INR15 crores of revenue line for these businesses to absorb costs... Pension is loss-making, account aggregator is loss-making.
- **[CATALYST] SEBI Cyber Resilience Requirements** (NEUTRAL): The risk is stable but remains a focus as the company accelerates spending, with INR 100 crores allocated to re-architecture in the coming year. (1 stable)
  > we will accelerate our spending in the current year... we will spend around INR100 crores on the overall -- meaning on the rearchitecture part of it.
- **[METRIC] System Availability Metrics** (NEUTRAL): The risk is STABLE. Management continues to highlight their 'Technology-driven' nature and the launch of new digital platforms like 'Bima Central' and 'WealthServ 360,' indicating the transition is ongoing without reported major outages. (1 stable)
  > The Company has disaster management plan
- **[PRINCIPLE] Transaction vs Annuity Revenue Mix** (NEGATIVE): The risk is intensifying as a major contract renegotiation led to a 4% drop in yields this quarter, with a total expected annual yield compression of 7% for FY26. (1 intensifying)
  > So you have seen a 4% drop in yield quarter-on-quarter basis, purely from an AUM fee perspective... we expect that the yearly yields when compared to the last year... will drop by around 7 percentage to 8 percentage.
- **[PRINCIPLE] KYC Registry Monopoly Position** (POSITIVE): The risk is EASING. Despite a general market decline in new account openings during the last quarter, CAMSKRA recorded 31% revenue growth for FY25 and successfully added 20+ new financial institutions and 3 leading brokerages in Q4, indicating strong market share gains despite industry-wide headwinds. (2 easing, 2 stable)
  > CAMSKRA recorded an impressive 31% growth in revenue in FY25 over FY24 despite decline in the new account opening in the last quarter
- **[PRINCIPLE] Settlement Technology Backbone** (POSITIVE, Risk: MODERATE): The project is on track with a phased go-live starting at the end of the current financial year. Management is now highlighting the benefits (AI-enablement and margin protection) rather than just the execution risk. (1 stable, 1 easing)
  > It's a very humongous program. It has multiple people, cultural, partner, technology dimensions. It involves work that we have not done in the past ever. And rearchitecting platforms, it takes companies very long.
- **[TREND] Demat Growth Rate Moderation** (POSITIVE, Risk: MODERATE): The risk is easing as management notes that while there was pressure from September to March, indices started easing in April/May and they expect LIC integration to drive significant new policy volumes. (1 easing)
  > CAMS KRA, you know that the account opening momentum in capital markets has been slow. While in mutual funds, the full account expansion remains intact. But in the broader capital markets, the depository and broking account momentum has been slower.
- **[TREND] Non-Securities Repository Diversification** (POSITIVE): The trajectory is stable to easing. Management confirmed that the 'Big Three' non-MF businesses (KRA, Payments, Alternatives) are now high-margin (20-35%), while smaller lines like Insurance and Account Aggregator are still in the investment phase but approaching the 10-15 crore break-even threshold. (1 easing)
  > We have said in the past that it takes about the initial Rs.10 crores per annum of revenue for a business to break even... Above that is the profitability line.
- The risk is INTENSIFYING as the company explicitly notes that current revenue growth figures (6.9% Y-o-Y) are already factoring in a 'price adjustment' that was previously guided, indicating a realized downward reset in fees. (2 intensifying, 3 easing) (POSITIVE, Risk: MODERATE)
  > Even if conversations happen, we do not believe that this will be of a very large impact to us. Like we have said in the past, the impact could be -- I mean the boundaries of the impact could be INR20 crores, INR25 crores overall for CAMS

### Scenario Analysis

- 2 positive impacts identified; 2 negative impacts identified (NEUTRAL)
  > CAMS KRA, you know that the account opening momentum in capital markets has been slow. While in mutual funds, the full account expansion remains intact. But in the broader capital markets, the depository and broking account momentum has been slower.
- 5 positive impacts identified (POSITIVE)
  > On the form data entry part, which is the AI-based data extraction, I think we've done very well. And we are moving a part of the payload. You typically have a maker and a checker in every process. We are moving part of the maker payload completely into the platform.

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