CMS Info Systems , a leading cash management and payment solutions provider, reported a 3% sequential decline in consolidated revenue for Q2 FY26, with PAT dropping 20% due to temporary disruptions in its ATM network. Despite these challenges, the company remains optimistic about its growth prospects for the second half of the fiscal year.

Q2 FY26 Financial Highlights

The company faced temporary disruptions with 4,000 ATMs becoming inactive due to private sector banks rationalizing off-site ATMs and funding constraints among Managed Service Providers (MSPs) post-AGS issues. This led to a revenue impact of approximately INR 15.00 crores.

Segment Performance

• Managed Services & Tech: Revenue grew 5% sequentially to INR 271.00 crores
• Cash Logistics: Revenue dropped 5% to INR 395.00 crores

Key Developments

1. Order Wins: Secured INR 500.00 crores worth of orders from leading private sector banks in Q2.
2. SBI Cash Outsourcing RFP: Concluded with an incremental revenue opportunity of INR 500.00 crores over 10 years for CMS Info Systems.
3. HAWKAI Platform: On track to reach 50,000+ sites by year-end, up from 30,000 at the beginning of FY26.
4. Prudent Provisioning: Took INR 10.00 crores provision due to elongated payment cycles.

Management Outlook

1. ATM Network: Expects to reach 74,000-75,000 ATMs by March FY26.
2. Revenue and Margins: Anticipates sequential improvement through Q3 and Q4.
3. H2 FY26 Growth: Projects 9% growth in H2 compared to H1, with services revenue expected to reach INR 1,225.00 crores.
4. FY27 Target: Aims for services revenue of INR 2,700.00-2,800.00 crores, representing 15-19% growth.

Industry Trends and Strategy

1. Private Sector Banks: Shifting focus from off-site to on-site ATMs, particularly recyclers.
2. Public Sector Banks: Continuing to balance between on-site and off-site ATMs.
3. Consolidation: Management expects the industry to consolidate from 6-7 players to 3-4 over the next 3-4 years.
4. Technology Integration: Increasing focus on AI and machine learning for operational efficiency and new service offerings.

CMS Info Systems remains confident in its ability to navigate the current challenges and capitalize on emerging opportunities in the cash management and payment solutions sector. The company's diversified business model and strategic investments in technology are expected to drive growth in the coming quarters.

Note: All financial figures are in Indian Rupees (INR).

CMS Info Systems , a leading cash management and payment solutions provider, has outlined its ambitious growth targets for the coming years, focusing on expanding its ATM operations and digital platform services.

ATM Business Expansion

The company has set its sights on significant growth in its cash business, projecting to operate between 74,000 to 75,000 ATMs by the end of March 2026. This expansion plan underscores CMS Info Systems' commitment to strengthening its position in the cash management sector.

Hawkai Platform Growth

CMS Info Systems' digital platform, Hawkai, is also slated for substantial expansion:

• By end of FY26: Expected to reach over 50,000 sites
• By FY30: Projected to expand to 80,000 sites

This growth trajectory for Hawkai indicates the company's focus on digital transformation and its aim to capture a larger market share in the digital payment solutions space.

Financial Projections and Capital Expenditure

The company has provided detailed financial projections for the coming years:

These projections suggest a steady growth trajectory for CMS Info Systems, with a particular emphasis on expanding its service offerings.

Conference Call and Financial Results

The company shared these business expansion targets during a recent conference call. According to the LODR data, an audio recording of the earnings call held on November 6, 2025, is available on the company's website. This call discussed the unaudited financial results for the quarter and half year ended September 30, 2025.

CMS Info Systems' growth plans reflect its strategic focus on both traditional cash management services and digital payment solutions. The company appears to be positioning itself to capitalize on the evolving landscape of India's financial services sector, balancing its established ATM business with the growing digital payments market.

Investors and market watchers will likely keep a close eye on CMS Info Systems' progress towards these ambitious targets in the coming years, as the company aims to strengthen its market position in both cash and digital payment solutions.