CMS Info Systems Q1 FY27 Results (NSE: CMSINFO)
Signal: Margin expansion
The read
The operating trajectory improved sequentially after the weak Q2-Q4FY26 profit arc: services revenue reached a record ₹625 Cr, EBITDA rose 8.9% YoY with reported margin expanding 170bps QoQ, and order wins were ~₹500 Cr, but consolidated PAT still fell 10.6% to ₹836.84 million because depreciation rose 63.4% and segment EBIT declined in both Cash Management and Managed Services.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹634.7 Cr | 1.2% | +0.3% |
| EBIT | ₹111.2 Cr | -14.3% | |
| Net profit | ₹83.68 Cr | -10.6% | |
| EPS | ₹5.1 | -10.4% | |
| EBIT margin | 29% |
P&L walk
Consolidated revenue grew only 1.2% YoY, but EBITDA rose 5.6% to ₹183.96 million with margin at 29%; PAT declined 10.6% to ₹836.84 million because depreciation increased 63.4% and EBIT fell 14.3% to ₹111.2 million.
Segments
Managed services was the growth engine, with revenue up 18% YoY to ₹2,865.86 million, but its EBIT fell 13% to ₹279.99 million; Cash Management remained the largest segment at ₹4,026.87 million revenue, down 3% YoY, with EBIT down 18% to ₹815.41 million.
Key positives
- Services revenue reached a record ₹625 Cr, increasing 9.3% YoY and 2.6% QoQ despite a sharp currency-supply disruption affecting ATM transaction volumes.
- EBITDA increased 5.6% YoY to ₹183.96 million and the reported EBITDA margin expanded 170bps QoQ to 27.2% in the media release, supported by pricing discipline, technology investment and a flexible workforce model.
- New order wins were approximately ₹500 Cr QoQ, including the HDFC Bank integrated managed-services mandate and mandates for approximately 1,000 currency recyclers with PSU banks.
- Managed services revenue grew 18% YoY to ₹2,865.86 million, substantially faster than consolidated revenue growth of 1.2%.
Key concerns
- Consolidated PAT declined 10.6% YoY to ₹836.84 million even as EBITDA grew 5.6%, because EBIT fell 14.3% to ₹111.2 million after depreciation increased 63.4% YoY.
- Cash Management revenue declined 3% YoY to ₹4,026.87 million and segment EBIT declined 18% to ₹815.41 million, indicating continued pressure in the largest business.
- Managed services EBIT declined 13% YoY to ₹279.99 million despite 18% revenue growth, showing that growth is not yet converting into segment profit.
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