CMS Info Systems slips after Q1 PAT slides 4% QoQ to Rs 94 crore

CMS Info Systems declined 1.09% to Rs 497.15 after the company?s consolidated net profit dropped 4.08% to Rs 93.58 crore on a 1.35% rise in revenue to Rs 627.41 crore in Q1 FY26 over Q4 FY25.

On a year-on-year (YoY) basis, the company reported a 3.07% increase in consolidated net profit to Rs 93.58 crore, on a 4.67% rise in revenue from operations to Rs 627.41 crore in Q1 FY26 over Q1 FY25.

Profit before tax in Q1 FY26 stood at Rs 125.60 crore, registering a growth of 3.57% from the Rs 121.27 crore reported in the corresponding quarter last year.

Total expenses rose 5.82% year on year (YoY) to Rs 518.17 crore in Q1 FY26. Employee benefit expenses stood at Rs 93.15 (up 8.35% YoY), and finance cost was at Rs 4.12 crore (up 10.16%) during the period under review.

Operating EBITDA grew 3.6% YoY to Rs 157.8 crore. EBITDA margin slipped to 25.15% in Q1 FY26 as against 25.41% in Q1 FY25.

On the segmental front, cash management services revenue stood at Rs 417.04 crore (up 7.74% YoY), while revenue from managed services business was Rs 244.02 crore (up 10.38% YoY) and card services revenue was at Rs 13.75 crore (down 23.01% YoY) during the quarter under review.

The company reported 1.53 lakh business touchpoints in its Cash Logistics segment, registering 9% YoY growth. ⁣

Rajiv Kaul, executive vice chairman and CEO of CMS Info Systems, said, ?We grew topline by 5% and PAT by 3% in a seasonally weak quarter amid subdued consumption trends. We continue to focus on executing our order book while maintaining a stable business profile. With the Securens acquisition, our HAWKAI brand will scale to a market-leading position, more than 2X of its closest competitor.?

Meanwhile, the company has announced a strategic acquisition in the Vision AI space. CMS will invest around Rs 80 crore to acquire up to 100% stake in Securens Systems, the fourth-largest player in the AIoT-based remote monitoring services industry.

Securens offers full-stack AIoT capabilities. The acquisition is expected to expand CMS?s Vision AI offerings and accelerate growth in this emerging vertical.

CMS Info Systems is India's largest cash management company in terms of the number of ATM points and retail pickup points as of March 31, 2021. The company is engaged in installing, maintaining, and managing assets and technology solutions on an end-to-end outsourced basis for banks, financial institutions, and organized retail and e-commerce companies in India.

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