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Revenue
₹609 Cr
verified against source
Revenue YoY
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reported change
EBITDA
Pending
latest reported figure
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Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
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 retail cash volumes, and higher provisions. The ATM business faced headwinds from bank rationalization of off-site ATMs and delayed PSU contract closures, leading to a revenue impact of ~15 cr. Retail volumes recovered strongly in October (+20% MoM). Management guided for sequential improvement in H2, targeting 9% services revenue growth in H2 vs H1 (to 1,225 cr) and a return to FY25 margin levels by year-end. Key positives include a 500 cr incremental revenue win from a large PSU bank cash outsourcing contract over 10 years and strong momentum in the Hawkeye tech platform (targeting 50,000+ sites by year-end). Risks include sustained ATM churn, elevated DSOs from MSP credit tightening, and execution risk in margin recovery.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects H2 services revenue (excluding hardware) to grow 9% over H1 to 1,225 cr, implying FY26 services revenue growth of 8%.
- Management guided for FY27 services revenue of 2,700-2,800 cr, representing 15-19% growth over FY26, based on H2 run rate.
- Management expects EBITDA margins to recover to FY25 levels by Q4 FY26, supported by incremental revenue from new contracts and cost optimization.
- Management targets a 6% improvement in pricing and realizations in the ATM cash business by March 2026, driven by better pricing discipline.
Risks flagged
- Private sector banks may continue to prune off-site ATMs, and PSU contract rollouts could face further delays, impacting network utilization and revenue.
- 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.
- 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.
Key quotes
- The short-term pain in the last year the collapse of an industry player the credit taps being tightened for some MSPs are eventually going to help the ATM industry consolidate faster.
- Our Hawkeye platform scaleup is massive. I want you to reflect on this business which was created post IPO in 2022 and this business has gone from a size of 0 crores to 100 crores in its first 3 years and is now likely to go to 250 cr revenue in the next two years.
- The performance will increase will not rest and inventive will not approve to the leadership team in this financial area and these are tied to performance.
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