Computer Age Management Services Limited (CAMS), India's leading registrar and transfer agent for mutual funds, has reported its highest ever quarterly revenue in Q2FY26, showcasing robust growth across both mutual fund (MF) and non-mutual fund segments.

Strong Revenue Growth

CAMS achieved significant revenue growth in Q2FY26:

The company's total Assets Under Management (AUM) crossed Rs. 52 lakh crores in September and reached Rs. 55 lakh crores in October, maintaining a market share of about 68%.

Mutual Fund Segment Highlights

• Equity net sales crossed Rs. 1 lakh crore for the quarter, marking the highest ever number.
• Net equity sales market share improved to 69% from 65%.
• SIP collections grew 21% year-on-year, with live SIP market share improving to 63.4%.
• The company onboarded six new Asset Management Companies (AMCs) during the year.

Non-Mutual Fund Segment Performance

• Non-MF revenue share improved to 14.4% of total enterprise revenue.
• CAMS Pay, the company's payment solution, grew 26% quarter-on-quarter.
• The alternatives business delivered its highest ever quarterly revenue, with assets under administration approaching Rs. 3 lakh crores.
• KRA (Know Your Client Registration Agency) revenue rebounded with 45% quarter-on-quarter growth after adding 38 new clients.

Financial Performance

• EBITDA margins improved to over 44%.
• Almost 60% of incremental revenue flowed to the bottom line.
• The board declared an interim dividend of Rs. 14 per share.

New Product Initiatives

CAMS launched its first SIF (Specified Investment Fund) product with SBI, garnering Rs. 1,000 crores and several thousand investors. The company expects 8-9 AMCs to launch SIF products in the coming months.

Future Outlook

Anuj Kumar, Managing Director & CEO of CAMS, expressed confidence in the company's growth trajectory: "We are focused on scaling our business by Rs. 150 to 200 crores a year. With assets growing at 8 to 9 lakh crores annually for the next three years, we expect to achieve Rs. 150 crores of MF increase. Our non-MF segment is also on track to meet the 20% year-on-year growth projection."

CAMS continues to invest in technology and innovation, recently unveiling the CAMS AI brand. The company plans to deploy AI solutions within its operations to enhance productivity and efficiency.

As CAMS maintains its market leadership and expands its service offerings, it remains well-positioned to capitalize on the growing Indian mutual fund industry and diversify its revenue streams through non-MF businesses.

Computer Age Management Services (CAMS), a leading technology-driven financial infrastructure and services provider, has outlined an ambitious growth strategy that aims to significantly boost its non-mutual fund business and overall revenue in the coming years.

Key Growth Targets

During a recent conference call, CAMS management revealed several key objectives:

Margin Improvement and Cost Control

CAMS is setting its sights on improving profitability in its non-mutual fund business. The company projects that EBITDA margins for this segment will reach 25% in the coming years, indicating a strong focus on operational efficiency and value creation.

To support these growth targets, CAMS plans to implement strict cost control measures. The company aims to limit cost growth to 10-11% annually, which should help in expanding margins and improving overall profitability.

Diversification Strategy

The growth strategy highlights CAMS' efforts to diversify its revenue streams. While the mutual fund business remains a core focus, with an expected contribution of INR 150.00 crore to the annual revenue increase, the company is placing significant emphasis on its non-mutual fund operations.

Investor Interest

CAMS' growth plans appear to be generating interest among investors and analysts. According to the company's recent disclosure, several upcoming meetings are scheduled with prominent investment firms and asset managers, including:

• Carnelian Asset Advisors
• ICICI Securities (as part of their Annual Investor Conference)
• JP Morgan
• Stewart Investors
• FSSA Investment Management

These meetings, scheduled throughout November, suggest that institutional investors are keen to understand more about CAMS' growth strategy and future prospects.

Conclusion

CAMS' ambitious growth targets, particularly in its non-mutual fund business, reflect the company's confidence in its diversification strategy and operational capabilities. As the financial services sector continues to evolve, CAMS appears to be positioning itself to capitalize on new opportunities while maintaining its strong presence in the mutual fund services space.

Investors and market observers will likely be watching closely to see how effectively CAMS can execute this strategy and achieve its targeted growth and margin improvements in the coming years.