CMS posts fourth record services quarter, margin reaches 26.7%

CMS Info Systems Limited reported its fourth consecutive record services-revenue quarter in Q2 FY27, with services revenue of Rs 644 crore, up 16.2% year on year, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 24.8% to Rs 173 crore and the EBITDA margin reached 26.7%.

How did CMS perform in Q2 FY27?

CMS reported consolidated total revenue of Rs 650 crore in Q2 FY27, up 6.7% year on year and 2.4% quarter on quarter. Services revenue increased faster than the group total, rising 16.2% year on year and 3.0% sequentially to Rs 644 crore, marking the fourth straight record quarter cited in the release.

EBITDA was Rs 173 crore in Q2 FY27, 24.8% above Q2 FY26 and 0.4% higher than Q1 FY27. The EBITDA margin was 26.7%, up 390 basis points from a year earlier but down 53 basis points from the preceding quarter; CMS attributed the year-on-year margin increase to business mix and productivity gains.

CMS recorded profit after tax of Rs 81 crore, up 10.3% from Q2 FY26 but down 3.3% from Q1 FY27. Diluted earnings per share were Rs 5.05, compared with a 14.9% year-on-year increase and a 1% sequential decline; the release did not give a specific reason for the quarter-on-quarter fall in profit after tax.

Why did CMS services revenue grow faster than total revenue?

CMS services revenue outpaced total revenue because its Technology & Payment Solutions business accounted for 20% of services revenue in Q2 FY27 and was trending towards an annualised Rs 500 crore run rate based on the quarter. Services grew 16.2% year on year, compared with 6.7% growth in total revenue.

Management said Technology & Payment Solutions produced Rs 127 crore of revenue in Q2 FY27, exceeding the Rs 120 crore generated by that business in the full FY22 year. Rajiv Kaul, Executive Vice Chairman and Chief Executive Officer, said the business had grown fourfold since FY22 at a compound annual growth rate of more than 33%.

Cash Logistics generated Rs 404 crore of revenue in Q2 FY27, up 2% year on year and unchanged from Q1 FY27. Managed Services & Technology Solutions, including Card Services, reported Rs 321 crore of revenue, up 19% year on year and 5% quarter on quarter, making it the faster-growing reported operating area.

Managed Services & Technology Solutions recorded earnings before interest and tax, or EBIT, of Rs 34 crore, down 10% year on year but up 8% sequentially. CMS said this EBIT performance reflected lower transaction-linked automated teller machine revenue and higher depreciation related to FY26 capital expenditure and the FSS acquisition.

What changed in CMS first-half FY27 results?

CMS reported total revenue of Rs 1,284 crore for H1 FY27, up 3.9% year on year, while services revenue rose 12.7% to Rs 1,269 crore. The difference extended the Q2 pattern, with services revenue expanding faster than group-wide revenue over the six months ended September 30, 2026.

H1 FY27 EBITDA increased 16.4% year on year to Rs 346 crore, and the EBITDA margin was 27%. The margin was 290 basis points above H1 FY26, with CMS again citing business mix and productivity gains as the reasons for the year-on-year movement.

Profit after tax for H1 FY27 was Rs 165 crore, down 1.4% year on year, while diluted earnings per share were Rs 10.15, up 1.4%. The release reported both measures but did not provide a reconciliation for the different year-on-year directions.

The statutory segment statement showed H1 FY27 Cash Management Services revenue of Rs 806.32 crore, compared with Rs 811.82 crore in H1 FY26. Managed Services revenue increased to Rs 584.19 crore from Rs 496.46 crore, while Card Services rose to Rs 42.28 crore from Rs 31.97 crore, before elimination of inter-segment sales.

What contracts and H2 FY27 plan did CMS disclose?

CMS said it won two large bank mandates during Q2 FY27, covering branch surveillance and automated teller machine software. Management said the mandates would deliver revenue growth and returns on investment in the HAWKAI platform, which CMS describes as its vision artificial intelligence solution.

Management also said most H2 FY27 revenue was contracted, based on its order book and deliveries scheduled for orders already won. This is a management outlook rather than a quantified forecast, because the release did not disclose the value of the order book, the size of either mandate or the revenue scheduled for H2 FY27.

CMS operates through ATM Management Solutions, Retail Solutions & Currency Logistics, and Technology & Payment Solutions, serving banks, financial institutions, organised retail and e-commerce companies. It said its network spans 97% of Indian districts and identified ALGO MVS automated teller machine software alongside HAWKAI as technology capabilities.

CMS scheduled its Q2 FY27 earnings conference call for November 14, 2026, at 2:00 pm Indian Standard Time. It said an analyst and institutional investor presentation would be submitted to stock exchanges and hosted on its website, making that call the next scheduled management discussion of the Rs 644 crore services-revenue quarter.

Conclusion

CMS delivered a quarter in which services revenue rose 16.2% to Rs 644 crore, faster than the 6.7% increase in total revenue, while EBITDA increased 24.8% to Rs 173 crore. The 19% revenue growth in Managed Services & Technology Solutions contrasted with 2% growth in Cash Logistics, consistent with management’s description of a shifting business mix.

The next issue is H2 FY27 execution, as management said most of its second-half revenue was contracted through the order book and scheduled deliveries. Investors can watch progress on the two bank mandates, the Technology & Payment Solutions annualised Rs 500 crore run-rate indication and management commentary at the November 14, 2026 conference call.