CMS Info Systems (CMSINFO) Q1 26/27 earnings summary

Executive summary

• Achieved highest-ever quarterly services revenue of INR 625 crore (₹625 Cr), up 9% year-on-year and 2.6% quarter-on-quarter, despite severe industry-wide cash supply disruptions that impacted revenue by INR 25 crore.

• EBITDA margin expanded by 170 bps sequentially to 27.2%, reflecting operational resilience and driven by technology investments, productivity gains, and pricing discipline.

• PAT for Q1 was INR 84 crore, down 10.6% year-on-year but up 5.8% sequentially, reflecting the impact of currency-supply disruptions.

• Major contract wins included a five-year, INR 400 crore mandate from HDFC Bank and other large orders, reinforcing market leadership.

• Large order book of INR 2,000 crore into FY27, with 85% of annual services revenue already contracted.

Financial highlights

• Total Q1 revenue was INR 635 crore (₹6,347 million), up 1.2% year-on-year and 0.3% quarter-on-quarter; services revenue at INR 625 crore, up 9.3% year-on-year and 2.6% quarter-on-quarter.

• EBITDA stood at INR 173 crore (₹1,688 million), up 8.9% year-on-year and 6.8% sequentially, with margin expanding to 27.2%.

• PAT for Q1 was INR 84 crore (₹837 million), down 10.6% year-on-year but up 5.8% sequentially; PAT margin at 13.2%.

• Share buyback completed in June 2026 for INR 168 crore (₹1,699.82 million), reducing paid-up equity share capital by ₹49.39 million.

• Basic EPS for the quarter: ₹5.10.

Outlook and guidance

• Full-year services revenue guidance revised to INR 2,650–2,750 crore due to currency supply impact; total revenue including products at INR 2,750–2,850 crore.

• EBITDA margin guidance raised to ~27% for FY27.

• Services revenue growth expected at 15–19% for FY 2027; technology and payments platform projected to grow 35–40%.

• CapEx for FY 2027 estimated at INR 100–125 crore, down from INR 350 crore in FY 2026.

• Management focus on technology investment, pricing discipline, and flexible workforce.