CAMS Q3 FY26: Scaling New Heights with Diversified Growth and Robust Margins

Computer Age Management Services Limited (CAMS), India's largest registrar and transfer agent for mutual funds, has delivered an exceptionally strong performance in the third quarter of fiscal year 2026. The company reported its highest-ever quarterly revenue, reaching INR 390.14 crore, marking a 5.5% year-on-year growth and a healthy 3.6% quarter-on-quarter increase. This impressive top-line expansion was complemented by a robust 46% EBITDA margin, with absolute EBITDA scaling to an all-time high of INR 179 crore. Despite market volatility and the cost impact of the new labour code implementation, CAMS demonstrated remarkable operational efficiency and strategic resilience, reinforcing its position as a leading financial infrastructure and services partner.

The quarter's performance underscores CAMS's ability to navigate a dynamic market landscape while driving growth across its diversified business segments. The mutual fund business, a core strength, continued its strong trajectory, with Assets Under Management (AuM) crossing the INR 55 lakh crore milestone in December 2025. CAMS maintained its market leadership with approximately 68% market share in overall AuM and a record 66.4% share in equity assets, reflecting a 70 basis points year-on-year increase. Equity net sales reached approximately INR 84,000 crore, driving market share to 71%, a sharp 930 basis points increase year-on-year. New SIP registrations stood at a healthy 1.16 crore, growing 18% year-on-year and significantly outpacing the industry's 6% growth. SIP collections for CAMS-serviced funds scaled strongly, growing 20% year-on-year to INR 55,964 crore, further expanding the live SIPs by 8% year-on-year and improving market share to 65.2%. The unique investor base also expanded by 14% year-on-year, crossing 4.4 crore during the quarter.

Diversification Driving Momentum

CAMS's strategic focus on diversifying its revenue streams beyond mutual funds has yielded significant results. Non-MF revenue surged by 24.3% year-on-year and 4.8% quarter-on-quarter, with its contribution to total revenue increasing to 14.5%. This growth was propelled by strong performances across various non-MF businesses:

CAMSPay demonstrated strong momentum with a 59% year-on-year revenue growth, driven by both its base business and the recently launched Payment Gateway. The platform signed 22 new deals in Q3 FY26, highlighting its increasing acceptance in the market. CAMS Alternatives reported its highest-ever quarterly revenue, registering a robust 16% year-on-year growth, with AuM exceeding INR 3 lakh crore, representing over 50% of the outsourced market. The WealthServ platform saw adoption crossing 250 mandates, with over 3,400 investors onboarded digitally. CAMS Rep revenue grew by 15% year-on-year, adding 7 lakh policies and 5.5 lakh eIAs, scaling to 13 million policies and 10 million eIAs overall, commanding over 40% market share.

Strategic Initiatives and Technological Edge

CAMS continues to leverage technology and strategic partnerships to drive innovation and efficiency. The successful transfer of NSE's KRA business to CAMS KRA reinforced its position as India's second-largest KRA, adding over 1 million unique users. Think360, CAMS's AI and data science arm, launched ConsenPro, an end-to-end discovery and consent lifecycle management solution for DPDPA compliance, positioning CAMS to capitalize on evolving regulatory requirements. The company also strengthened its GIFT City footprint, with 38 funds outsourcing services and the launch of digital onboarding for GIFT City funds, including Tata MF's maiden Titanium SIF NFO and the industry's first retail inbound fund.

CAMSfinserv, the Account Aggregator platform, signed 38 new deals, marking its highest number in a single quarter, and accelerated go-lives with 23 FIUs onboarded. Its analytics service stack witnessed accelerated adoption, delivering 43% client growth and 70% volume growth. CAMS NPS achieved significant growth, with over 37% quarter-on-quarter and 80% year-on-year revenue growth, securing two new bank sign-ups and successfully going live with a multi-scheme framework.

Management Outlook and Financial Discipline

Management expressed confidence in sustaining this growth trajectory. They anticipate non-MF revenue to grow by 20-25% in the near term and aspire for 25% growth in the medium to long term. The non-MF business is projected to reach an INR 500 crore book in the next 4 to 5 years, with an EBITDA range of INR 125-150 crore at a 30% EBITDA margin. The company expects to onboard another 5 to 6 AMCs this year. EBITDA margins are expected to creep up by 100 basis points over the next year or two, with a guidance of maintaining margins above 45% and potentially reaching 46-47% in good quarters. The management also highlighted that the cost increase would be contained at 10% year-on-year, demonstrating continued cost control and efficiency.

Despite the cost impact of the new labour code and potential regulatory changes like the TER adjustment, CAMS's focus on technology-driven productivity and value-based pricing is expected to maintain margin stability. The company's strong cash position, with cash and cash equivalents of INR 852.86 crore as of December 31, 2025, and a consistent dividend payout policy of 65% of profits, reflects disciplined capital allocation. The basic EPS for Q3 FY26 stood at INR 5.07, and for 9M FY26, it was INR 14.13.

In conclusion, CAMS's Q3 FY26 performance is a testament to its strategic clarity, sustained growth across diversified segments, and disciplined execution. The company's leadership in the mutual fund RTA space, combined with the rapid expansion and traction in its non-MF businesses, positions it well to deliver consistent, long-term value to all stakeholders.