ATMs under management
70,000
+2,000 QoQ
Recovered from 68,000 in Q2; targeting 74,000-75,000 by March/April.
CMSINFOSYSTEMS
Information Technology
14 Feb 2026
Cms Info Systems Ltd — Q3 FY26
CMS Info Systems reported Q3 FY26 revenue of ₹618 crore (+1.6% YoY), with EBITDA of ₹158 crore and margin expansion of 160 bps to 25.5%, driven by cost optimization and mix shift to higher-value contracts.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
CMS Info Systems reported Q3 FY26 revenue of ₹618 crore (+1.6% YoY), with EBITDA of ₹158 crore and margin expansion of 160 bps to 25.5%, driven by cost optimization and mix shift to higher-value contracts. PAT was impacted by a one-time provision of ₹11.1 crore for new labor code. The quarter saw revenue quality improve, with service revenue up 4% QoQ and managed services/tech up 18% QoQ. Management guided FY27 revenue of ₹2,800-2,900 crore and EBITDA margins of 25-26%, supported by a ₹1,600 crore order book and the recently awarded SBI contract (₹500 crore incremental over 10 years). Risks include execution delays on large contracts and potential further credit stress among MSPs.
Key Numbers
Order book
₹1,600 crore
YTD FY26
High-quality order book executed during the year, driving revenue visibility for FY27.
Hawkeye ARR
₹200 crore
Double from ₹100 crore in FY24
Hawkeye business doubled from ₹100 crore ARR in FY24 to ₹200 crore in FY26.
Cash on books
₹600 crore
Flat
Strong liquidity position supports organic growth and potential M&A.
Management Guidance
FY27 revenue target of ₹2,800-2,900 crore
Overall revenue guided to ₹2,800-2,900 crore, with services revenue of ₹2,700-2,800 crore and product revenue of ~₹100 crore.
Management guidance revenueFY27 EBITDA margin of 25-26%
EBITDA margins expected to improve to 25-26% in FY27, driven by operational efficiencies and revenue mix shift.
Management guidance marginsQ4 FY26 services run rate of ₹650 crore
Targeting exit Q4 with services run rate of ~₹650 crore, implying ~95% certainty, to support FY27 revenue bridge.
Management guidance revenueCapex guidance of ₹300-325 crore for FY26
Capex expected to be in the range of ₹300-325 crore for FY26, with YTD spend of ₹275 crore.
Management guidance capexKey Risks
Execution risk on large contracts
The SBI contract and other large deals may face rollout delays, impacting revenue recognition and margin recovery.
high · management_commentaryCredit stress among MSP partners
DSO issues from midsized MSPs due to credit tightening post-AGS crisis may persist, requiring further provisions.
medium · analyst_questionCompetitive pressure in retail cash management
Aggressive pricing by competitors could limit margin expansion and market share gains in the retail segment.
medium · analyst_questionRevenue concentration risk
Despite diversification, top customer still contributes 18% of revenue; loss of any large contract could impact growth.
low · data_observationNotable Quotes
We have almost 95% certainty on this number.
The revenue has bottomed out. I think currently the trend line is to grow.
We will evaluate this closer to the end of this year as we look at our overall capital needs.
Frequently Asked Questions
What was Cms Info Systems's revenue in Q3 FY26?
Cms Info Systems reported revenue of ₹618 Cr in Q3 FY26, representing a +1.6% change compared to the same quarter last year.
What guidance did Cms Info Systems management give for FY27?
FY27 revenue target of ₹2,800-2,900 crore: Overall revenue guided to ₹2,800-2,900 crore, with services revenue of ₹2,700-2,800 crore and product revenue of ~₹100 crore. FY27 EBITDA margin of 25-26%: EBITDA margins expected to improve to 25-26% in FY27, driven by operational efficiencies and revenue mix shift. Q4 FY26 services run rate of ₹650 crore: Targeting exit Q4 with services run rate of ~₹650 crore, implying ~95% certainty, to support FY27 revenue bridge. Capex guidance of ₹300-325 crore for FY26: Capex expected to be in the range of ₹300-325 crore for FY26, with YTD spend of ₹275 crore.
What are the key risks for Cms Info Systems in FY27?
Key risks include Execution risk on large contracts — The SBI contract and other large deals may face rollout delays, impacting revenue recognition and margin recovery.; Credit stress among MSP partners — DSO issues from midsized MSPs due to credit tightening post-AGS crisis may persist, requiring further provisions.; Competitive pressure in retail cash management — Aggressive pricing by competitors could limit margin expansion and market share gains in the retail segment.; Revenue concentration risk — Despite diversification, top customer still contributes 18% of revenue; loss of any large contract could impact growth..
Did Cms Info Systems meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Cms Info Systems Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.