CMS Info Systems Reports Q2 FY26 Results: Revenue Dips Amid Temporary Challenges
CMS Info Systems reported Q2 FY26 results with revenue at ₹609.00 crore (-3% YoY) and PAT at ₹73.30 crore (-19% YoY). H1 FY26 showed revenue of ₹1,236.00 crore (+1% YoY) and PAT of ₹167.00 crore (-8% YoY). Cash Logistics revenue grew 1% YoY, while Managed Services & Technology Solutions revenue increased 3% YoY. The company secured new orders worth ₹500.00 crore in Q2. Despite challenges, CMS aims for 9% services revenue growth in H2 over H1 and plans to expand its HAWKAI Solution to 50,000 sites by FY26.
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CMS Info Systems , India's leading business services company, has reported its financial results for the second quarter of fiscal year 2026, revealing a slight dip in revenue amid temporary industry challenges.
Financial Performance
For Q2 FY26, CMS Info Systems reported:
| Metric | Q2 FY26 | YoY Change |
|---|---|---|
| Revenue | ₹609.00 | -3% |
| PAT | ₹73.30 | -19% |
| PAT Margin | 12.00% | -250 bps |
The company's performance for the first half of FY26 showed:
| Metric | H1 FY26 | YoY Change |
|---|---|---|
| Revenue | ₹1,236.00 | +1% |
| PAT | ₹167.00 | -8% |
| PAT Margin | 13.50% | -134 bps |
Segment-wise Performance
CMS Info Systems' two main business segments showed mixed results:
Cash Logistics Business (Q2 FY26)
- Revenue: ₹395.00 crore (+1% YoY)
- EBIT: ₹59.00 crore (-39% YoY)
Managed Services & Technology Solutions (Q2 FY26)
- Revenue: ₹271.00 crore (+3% YoY)
- EBIT: ₹38.00 crore (-5% YoY)
Key Highlights
- New order wins of ₹500.00 crore in Q2, bringing total H1 wins to ₹1,000.00 crore
- Completed acquisition of Securens, strengthening the company's technology portfolio
- HAWKAI remote monitoring platform continues to show strong growth
- Q2 margins faced pressure due to lower network utilization and subdued retail consumption
Management Commentary
Rajiv Kaul, Executive Vice Chairman and CEO, commented on the results: "H1 revenues remained stable despite macro and industry challenges. Our focus on key wins and strategic initiatives is building strong momentum, and October consumption trends have been strong. Our market position and fundamentals are solid, and we are targeting to grow our services revenue by 9% in H2 over H1 to regain growth momentum to build a strong base for FY27."
Outlook
CMS Info Systems aims to recover its growth trajectory in the second half of FY26. The company is targeting:
- 9% growth in services revenue in H2 compared to H1
- Expansion of the HAWKAI Solution to 50,000 sites by FY26
- Increase in ATM deployments, expecting to reach around 75,000 by March 2026
- 5% increase in ATM pricing
- 10% reduction in the number of routes and transition of 25% retail points to a Gig model to optimize network costs
The company maintains a strong cash position of ₹1,000.00 crore as of March 2025, providing a solid foundation for future growth and strategic initiatives.
CMS Info Systems continues to focus on strengthening its core business, expanding its total addressable market, and maintaining robust financial performance through its platform approach. The company's diversified revenue streams and strategic investments in technology solutions position it well to navigate short-term challenges and capitalize on long-term growth opportunities in India's evolving financial services and retail landscapes.
Historical Stock Returns for CMS Info Systems
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.66% | -6.34% | -4.69% | -20.90% | -33.92% | +48.13% |
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