CMS Info Systems Q1 Profit Dips 10.6% Amid Currency Woes

CMS Info Systems Ltd. reported a significant 10.6% year-on-year decline in consolidated profit after tax for the first quarter of FY27, reaching ₹83.7 crore. This drop, from ₹93.6 crore in Q1 FY26, is directly attributed to a substantial currency-supply disruption that severely impacted ATM transaction volumes across India.

The company noted this disruption as the sharpest in a decade. Despite the reduced profit, consolidated revenue for the period saw a modest 1.2% year-on-year increase, climbing to ₹634.7 crore from ₹627.4 crore in the previous year.

Key Q1 FY27 Financials

• Consolidated Profit After Tax: ₹83.7 crore (down 10.6% YoY)
• Consolidated Revenue: ₹634.7 crore (up 1.2% YoY)
• EBITDA: ₹168.8 crore (up 6.9% YoY)
• EBITDA Margin: 26.6% (up from 25.2% YoY)

Earnings before interest, tax, depreciation, and amortisation (EBITDA) demonstrated resilience, growing 6.9% year-on-year to ₹168.8 crore. This performance also saw the EBITDA margin expand to 26.6% from 25.2% in the corresponding quarter of the prior fiscal year.

New Business Mandates Secured

During Q1 FY27, CMS Info Systems successfully secured new orders totaling approximately ₹500 crore. These wins highlight the company’s continued expansion and strategic partnerships within the financial sector.

• Integrated managed services mandate from HDFC Bank.
• Two product mandates from public sector banks for around 1,000 currency recyclers.
• Two large public sector bank wins in Technology & Payment Solutions for HAWKAI Enterprise and ALGO MVS solutions.

Segmental Performance Overview

The Cash Logistics segment recorded revenue of ₹403 crore, representing a 3% year-on-year decrease, though it saw a 1% sequential increase. Its segment EBIT was ₹81 crore, down 18% year-on-year but up 3% sequentially.

Conversely, the Managed Services & Technology Solutions segment, which includes Card Services, reported a robust revenue increase of 18% year-on-year to ₹305 crore, alongside a 4% sequential rise. However, this segment’s EBIT declined 13% year-on-year and 24% sequentially to ₹32 crore, impacted by lower BLA transaction revenue and higher depreciation charges.

Rajiv Kaul, executive VC and CEO, acknowledged the quarter’s challenges stemming from the currency-supply disruption and its effect on ATM volumes. He noted that despite a seasonally weak quarter, the company achieved its highest-ever services revenue, up 9%, with EBITDA growing 8.9% year-on-year and margins expanding 170 basis points sequentially. Kaul attributed this performance to two years of investment in technology, pricing discipline, growth from private sector banks, and a flexible workforce model, all while absorbing significant cost inflation from minimum-wage increases and higher fuel costs.