📉 Performance Snapshot: Q3 FY26 Mixed Bag for CMS Info Systems
CMS Info Systems Limited announced its financial results for the quarter ended December 31, 2025 (Q3 FY26), revealing a divergence between top-line growth and profitability. Consolidated revenue saw a healthy 6.3% year-over-year (YoY) increase to ₹618.22 Cr, up from ₹581.49 Cr in Q3 FY25, and a 2% quarter-over-quarter (QoQ) rise from ₹608.62 Cr in Q2 FY26.
However, profitability took a significant hit. Consolidated Profit Before Tax (before exceptional items) dropped 29.7% YoY to ₹88.14 Cr from ₹125.42 Cr, and fell 8% QoQ from ₹95.60 Cr. A one-time impact of ₹11.11 Cr related to new Labour Codes (wage code impact) was recognised as an exceptional item, further denting profits. Consequently, Consolidated Profit After Tax (PAT) plunged 38.3% YoY to ₹57.40 Cr from ₹93.19 Cr, and declined 21.7% QoQ from ₹73.35 Cr. Earnings Per Share (EPS) followed suit, decreasing 38.3% YoY to ₹3.49.
The nine-month period (9M FY26) also reflected this trend, with consolidated revenue growing 2.7% YoY to ₹1,854.25 Cr, but PAT declining 18.4% YoY to ₹224.33 Cr.
📈 Key Updates & Strategic Wins
Despite the profitability challenges, CMS Info Systems secured a landmark order from the State Bank of India (SBI) valued at ₹1,000 Cr over 10 years, expected to contribute an incremental ₹500 Cr in revenue. This contract, covering 5,000 SBI ATMs, signifies a major step in integrated cash outsourcing for public sector banks.
The company also completed the acquisition of a 99.50% stake in Securens Systems Private Limited (SSPL) for ₹441.07 million and signed a term sheet for the transfer of a Managed Services Provider (MSP) business, estimated at ₹100-125 Cr.
Furthermore, the Board declared an interim dividend of ₹2.75 per equity share (27.50%) for FY 2025-26, signaling a commitment to shareholder returns. The deployment of its Enterprise HAWKAI solution with AI use cases at a leading PSU bank was also noted.
🔮 Outlook & Management Commentary
Management acknowledged FY26 as a "volatile year" impacted by wage inflation and macro events. However, they expressed confidence that Q3 FY26 marks a "financial bottom," anticipating strong sequential quarter-on-quarter gains. A revenue goal of ₹2,800 Cr has been set for FY27, indicating a focus on future growth. The company is investing in new delivery models to enhance network productivity and drive profitable growth.
🔍 Financial Deep Dive & Comparative Lens
While the income statement highlights revenue growth alongside significant profit compression, key balance sheet and cash flow details (Net Debt, FCF, CapEx, ROE/ROCE) were not provided in this excerpt. The performance shows a clear contrast between revenue expansion and the impact of cost pressures and exceptional items on profitability, necessitating investor scrutiny on margin recovery and cost management.
The long-term direction points towards leveraging its market leadership in cash logistics and expanding its managed services and technology solutions, especially with the substantial SBI order acting as a significant catalyst.