CMS Info Systems (CMSINFO) Q4 25/26 earnings summary

Executive summary

• FY26 was challenging due to adverse climate, geopolitical issues, weaker H1 consumption, competitor exit, delayed SBI contract, and ATM shutdowns, but Q4 saw a strong sequential turnaround with improved margins and revenue growth.

• Revenue grew 2.6% YoY to ₹2,487 Cr; services revenue up 5.8% YoY to ₹2,312 Cr.

• Management focused on protecting revenue, gaining market share, shifting to fixed fee models, and improving portfolio quality.

• Two strategic acquisitions (Securens and FSS Managed Services) consolidated market position in BFSI Vision AI and managed services.

• Major contracts secured with SBI, ICICI, and HDFC, covering 85% of FY27 revenue targets.

Financial highlights

• Q4 FY26 services revenue at ₹609 Cr, up 6% QoQ; total Q4 revenue at ₹633 Cr, up 2.4% QoQ.

• Q4 EBITDA at ₹162 Cr, up 15% QoQ; EBITDA margin improved by 280 bps to 25.6%.

• Q4 PAT at ₹79 Cr, up 38% QoQ; FY26 PAT at ₹303 Cr, down 18.5% YoY.

• FY26 EBITDA at ₹600 Cr, down 5% YoY; EBITDA margin at 24.1%.

• Board approved a final dividend of ₹2.50 per share and a buyback of up to 3% of outstanding shares at ₹340 per share.

Outlook and guidance

• FY27 revenue guidance: total revenue ₹2,800–2,900 Cr (13–17% growth); services revenue ₹2,700–2,800 Cr (17–21% growth).

• Aiming to maintain EBITDA margins in the 25% range, with conservative outlook due to inflation and geopolitical risks.

• FY30 aspiration: services revenue ₹3,750–3,950 Cr, tech and payments to reach 26–28% of mix.

• Order book at ₹2,000 Cr+, with high-quality, fixed-fee contracts and 85% of FY27 services revenue already contracted.

• Long-term growth expected to accelerate to 13–14% CAGR over the next four years.