CMS Info Systems Limited — Q2 FY26
CMS Info Systems reported a weak Q2 FY26 with consolidated revenue of 609 cr (down ~3% QoQ) and PAT of 73 cr (down 20% QoQ), impacted by temporary ATM network churn, subdued ret...
bearish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
54%Questions answered3Evaded / deflected12Questions auditedContradictedNumbers vs filing
Evasive
High priority
Asked about H2 revenue guidance for cash management and managed services excluding hardware.
Asked by Vikar, Unifi Capital
Management did not confirm the specific number, instead reframed the concept.
did not confirm the 1225 crore numberreframed to annuity and services revenue
Read the exchange
Question
did you call out that the combination of cash management services and managed services revenue would be about 1225 crores in H2. This is excluding the hardware component.
Rajiv (Management)
Yeah. So I think Vic if you reflect back on both the analyst day and the way we said businesses are merging into each other we sort of are focusing on the annuity and services revenue will cut across all our business lines and will not include product revenue.
Answered
High priority
Asked if the 50-70 crore revenue from SBI RS is incremental.
Asked by Vikar, Unifi Capital
Management confirmed the revenue is incremental.
Read the exchange
Question
what's the incremental revenue at stake here or is the entire 50 to 70 cr likely to be incremental.
Rajiv (Management)
So I think the if you look at the commentary that we have shared in the presentation as well as in the form now the the 500 cr that we're talking about is only purely reflective of the incremental revenue opportunity.
Partial answer
Medium priority
Asked about gig model impact on fixed cost savings and employee cost reduction sustainability.
Asked by Vikar, Unifi Capital
Management explained gig model qualitatively but did not quantify fixed cost savings.
no quantitative fixed cost savings givendeferred employee cost details to Punit
Read the exchange
Question
could you please flesh out that more and what that does from a fixed cost savings perspective and number one and secondly on the employee cost reduction that we've seen in Q2 how should we read this going forward?
Rajiv (Management) and Punit (Management)
The gig is really if you go back and think about what we're trying to do on the retail opportunity is to really sort of try and expand the market...
Answered
High priority
Asked if employee cost reduction is one-off and how to model going forward.
Asked by Vikar, Unifi Capital
Management clearly stated the reduction is one-off.
Read the exchange
Question
On the employee cost reduction bit is this a one-off? I mean how are you thinking about this going forward?
Rajiv (Management)
I think the employee cost reductions which you're seeing in Q2 especially linked to the two things we talked about are one-off and therefore they won't obviously be in Q3 or Q4.
Declined
High priority
Asked for quantitative guidance on employee cost per quarter.
Asked by Vikar, Unifi Capital
Management explicitly declined to give a number.
refused to provide quantitative guidance
Read the exchange
Question
So, so, so quantitatively what does that mean? I mean do we revert to our average of 90 crores a quarter or will it be between 80 and 90 cr a quarter?
Rajiv (Management)
quantitatively magic I don't know the answer to that question right now I think we don't have a we also will not be able to forecast Q3 Q4 line by line costs right now.
Partial answer
High priority
Asked about provisions and incremental stress in H2.
Asked by Vikar, Unifi Capital
Management gave a range but did not confirm if stress continues.
did not directly answer if incremental stress in H2provided range but not specific
Read the exchange
Question
the provisions that we've taken is there incremental stress in H2 as well. Are we scaling down that business?
Punit (Management)
So in addition to usual risk provisioning, we had taken incremental ECL provisioning due to elongated payments from certain MSPs. we expect that the normal risk provisioning plus ECL provisioning to be in the range of 4% revenue in line with our historical trend.
Partial answer
Medium priority
Asked about aging of stressed receivables and incremental provision for cash business.
Asked by Vikar, Unifi Capital
Management eventually gave a range but was initially evasive.
initially evasive, then gave vague range
Read the exchange
Question
what's the aging year? Have we crossed six months on this? what's the rough aging count there?
Punit (Management)
the additional 6 to 9 months would be the pool of time if you're talking yeah that's what I'm coming for
Answered
High priority
Asked about 3,000 crore RFP pipeline and how it translates to CMS.
Asked by Vikar, Unifi Capital
Management confirmed the pipeline and explained the opportunity.
Read the exchange
Question
3,000 crores of RFPs in pipeline did I get that right and how should we imagine this going down to CMS?
Anusha (Management)
the pipeline of these RFPs will be roughly 30,000 to order 35,000 branches. That will present an opportunity of a 3,000 cr revenue size for those banks... Hawkeye is a leading contender.
Partial answer
Medium priority
Asked about scale of payments business and playbook.
Asked by Vikar, Unifi Capital
Management did not give a specific number for payments business scale.
did not quantify current scalereferred to P&L without specifics
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Question
What's the scale of a payments business today and what's the playbook here specific payment business?
Rajiv (Management)
our payments business is limited to specifically what we do in our card management and card personalization solutions... we are making aggressive and active efforts through M&A to look at B2B fintech and payment type firms.
Evasive
High priority
Asked about margin profile and profitability by segment.
Asked by Vikran Bendar, Ashoko Investments family office
Management declined to provide segment profitability, citing network integration.
deferred to future reportingno specific margins given
Read the exchange
Question
How are the profile margin profitability profiles defined in each sector?
Rajiv (Management)
we will start reporting revenues by these segments by end of the year... Coming to profitability... we today cannot give you detailed profitability metrics by business simply because the entire network runs together.
Partial answer
Medium priority
Asked about capex allocation across segments and focus on technology.
Asked by Vikran Bendar, Ashoko Investments family office
Management gave qualitative answer but no quantitative capex allocation.
no specific capex breakdown given
Read the exchange
Question
how the capex is defined across the three segment? Is the management focusing more on the technology side of business going forward?
Rajiv (Management)
the return profile for the technology business are very good... I don't think there is a priority on a particular area... each project has to meet a threshold.
Answered
High priority
Asked about decline in business touch points and reason for ATM shutdowns.
Asked by Rushi Parik, Google Rocks
Management explained the reasons clearly.
Read the exchange
Question
this decline in the business touch point is it purely related to the ATMs? what is the reason for the shutdown of these ATMs?
Anusha (Management)
post the AG situation many private sector banks pruned their off-site ATM networks... public sector banks had awarded RFPs to MSPs who found it difficult to roll out... we started seeing a pick up in momentum on ATMs coming back.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| H2 revenue guidance for cash management and managed services excluding hardware is 1225 crores | ₹1,225 cr | ₹609 cr | Overstated vs filing |
| Incremental revenue opportunity from SBI RS is 500 crores | ₹500 cr | ₹609 cr | Understated vs filing |
| Revenue impact of about 18-20 crores, 5 crores per month from ATM side | ₹18 cr | ₹609 cr | Understated vs filing |
| Pending order book for execution is about 1,400 crores | ₹1,400 cr | ₹609 cr | Overstated vs filing |
| Won 500 crores of new orders this quarter | ₹500 cr | ₹609 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.