CMS Info Systems

CMS Info Systems reported consolidated revenue of INR 609 crores for Q2 FY26, declining 3% sequentially from INR 627 crores. PAT dropped 20% to INR 73 crores from INR 94 crores in the previous quarter, with margins contracting 280 basis points to 12.1%. The company faced temporary disruption with 4,000 ATMs becoming inactive due to private sector banks rationalizing off-site ATMs and funding constraints among MSPs post-AGS issues. This led to revenue impact of approximately INR 15 crores. The company took prudent provisions of INR 10 crores due to elongated payment cycles. Managed Services Tech revenue grew 5% sequentially to INR 271 crores, while cash logistics dropped 5% to INR 395 crores. Order wins for the quarter stood at INR 500 crores from leading private sector banks. The SBI cash outsourcing RFP concluded, representing incremental revenue opportunity of INR 500 crores over 10 years. Management expects to reach 74,000-75,000 ATMs by March and sequential improvement in revenue and margins through Q3 and Q4. HAWKAI platform continues rapid growth, on track to reach 50,000+ sites by year-end from 30,000 at the beginning of FY26.

CMS Info Systems shared its business expansion targets during a conference call. The company expects to operate 74,000-75,000 ATMs in its cash business by March FY26. The Hawkai platform is projected to reach over 50,000 sites by end of FY26 and expand to 80,000 sites by FY30. For FY26, the company estimates capital expenditure of around INR 300 crores. Services revenue is expected to grow 9% in H2 FY26 to INR 1,225 crores from H1's INR 1,125 crores, indicating 8% overall FY26 services revenue growth. Looking ahead to FY27, the company targets services revenue of INR 2,700-2,800 crores, representing 15-19% growth.

CMS Info Systems shares fell to a 52-week low of ₹340.20, trading down 4.32% at ₹346.85. The business services firm reported consolidated revenue of ₹609 crore for Q2 FY26, declining 3% year-on-year, while profit after tax dropped 19% to ₹73.3 crore with margins contracting to 12%. For the first half of FY26, revenue remained flat at ₹1,236 crore with 1% growth, though PAT fell 8% to ₹167 crore. The company attributed weak performance to softer retail consumption due to extended monsoon rains and temporary delays in ATM redeployment by banking clients. The Cash Logistics segment saw EBIT plunge 39% despite marginal revenue growth, while Managed Services posted a 5% decline in EBIT. CMS announced new order wins worth ₹500 crore in Q2 and completed the Securens acquisition. CEO Rajiv Kaul expressed confidence in recovery, targeting 9% revenue growth in H2 over H1. The stock has declined from its 52-week high of ₹556.90 reached in December 2024.