CMS Info Systems (CMSINFO) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 was a transitional quarter with revenue down 3% year-over-year, impacted by industry recalibration, delayed ATM redeployments, and subdued retail activity.

• H1 FY26 revenue remained flat or up 1% year-over-year, with robust new order wins totaling ₹1,000 crore and expansion in retail points.

• Securens acquisition closed, integrating HAWKAI platform and expanding into quick-commerce and dark stores.

• Retail and currency logistics businesses were affected by subdued consumption and extended rains, especially in rural areas.

• ATM management solutions faced transition and churn, impacting H1 growth and profitability, but H2 is expected to recover.

Financial highlights

• Q2 FY26 consolidated revenue was ₹6,086 million, down 3% sequentially and year-over-year; H1 FY26 revenue was ₹12,360 million, up 1% year-over-year.

• Q2 FY26 PAT was ₹733.5 million, down 20% sequentially and 19% year-over-year; PAT margin contracted to 12.06%.

• Managed services and tech revenue grew 5% sequentially; cash logistics revenue dropped 5% sequentially.

• H1 service revenue grew 5% year-over-year, driven by 18% annual growth in managed services and tech.

• Cash balance at end of H1 FY26 was ₹573 million, down due to higher CapEx, dividend payout, and acquisition costs.

Outlook and guidance

• H2 FY26 is expected to see margin recovery and sequential improvement in revenue and profitability.

• Large PSU bank cash outsourcing RFP closed, representing ₹500 crore incremental revenue over 7-10 years.

• FY2026 services revenue projected to grow 8%-9%, with H2 annuity revenue providing a strong base for 15%-19% growth in FY2027.

• HAWKAI tech platform targeted to reach 50,000 sites by FY26 and 80,000 by FY30, with a 50% growth CAGR opportunity.

• Tech investments in automation aim to reduce network costs by 10% and transition 25% of retail points to a gig model.