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View Claim Ledger →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.
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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.
Promises0 met · 3 missedRisks4 trackedTranscriptfull text
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Promises
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0 delivered, 0 close, 3 missed.
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Risks
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Risk Intelligence
Execution risk on large contracts
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Read Transcript →Quarter Snapshot
ATMs under management
70,000
+2,000 QoQ
Recovered from 68,000 in Q2; targeting 74,000-75,000 by March/April.
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.
What Changed vs Last Quarter
NEW
FY27 EBITDA margin of 25-26%
EBITDA margins expected to improve to 25-26% in FY27, driven by operational efficiencies and revenue mix shift.
NEW
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.
NEW
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.
UPDATED
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.
DROPPED
H2 services revenue target of 1,225 cr
Management expects H2 services revenue (excluding hardware) to grow 9% over H1 to 1,225 cr, implying FY26 services revenue growth of 8%.
DROPPED
Return to FY25 margin levels by end of FY26
Management expects EBITDA margins to recover to FY25 levels by Q4 FY26, supported by incremental revenue from new contracts and cost optimization.
DROPPED
6% pricing improvement in ATM cash business by March
Management targets a 6% improvement in pricing and realizations in the ATM cash business by March 2026, driven by better pricing discipline.
NEW RISK
Execution risk on large contracts
The SBI contract and other large deals may face rollout delays, impacting revenue recognition and margin recovery.
NEW RISK
Credit stress among MSP partners
DSO issues from midsized MSPs due to credit tightening post-AGS crisis may persist, requiring further provisions.
NEW RISK
Competitive pressure in retail cash management
Aggressive pricing by competitors could limit margin expansion and market share gains in the retail segment.
NEW RISK
Revenue concentration risk
Despite diversification, top customer still contributes 18% of revenue; loss of any large contract could impact growth.
RISK GONE
Sustained ATM churn from bank rationalization
Private sector banks may continue to prune off-site ATMs, and PSU contract rollouts could face further delays, impacting network utilization and revenue.
RISK GONE
Elevated DSOs and credit risk from MSP ecosystem
Post-AUS issue, banks have reduced credit limits to MSPs, leading to elongated payment cycles and a 10 cr provision. DSOs may remain elevated if collections don't improve in H2.
RISK GONE
Execution risk in margin recovery
Management expects margins to recover to FY25 levels by year-end, but this depends on cost optimization and revenue ramp-up, which may face headwinds from wage inflation and network costs.
Fast read
Guidance and risk preview
Overall revenue guided to ₹2,800-2,900 crore, with services revenue of ₹2,700-2,800 crore and product revenue of ~₹100 crore.
The SBI contract and other large deals may face rollout delays, impacting revenue recognition and margin recovery.
View Risks →