CMS Info Systems Q1 profit falls 11% as currency-supply disruption hits ATM volumes

Cash logistics major CMS Info Systems Ltd on Monday (August 10) reported a 10.6% year-on-year decline in consolidated profit after tax (PAT) to ₹83.7 crore for the first quarter of FY27, compared with ₹93.6 crore in the year-ago period.

Consolidated revenue increased 1.2% year-on-year to ₹634.7 crore from ₹627.4 crore in Q1 FY26.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 6.9% year-on-year to ₹168.8 crore from ₹157.9 crore. EBITDA margin improved to 26.6% in Q1 FY27 from 25.2% in the corresponding quarter last year.

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The company secured new orders worth around ₹500 crore during the quarter, led by the HDFC Bank integrated managed services mandate. It also won two product mandates from public sector banks for around 1,000 currency recyclers.

CMS Info Systems also secured two large public sector bank wins in its Technology & Payment Solutions business for the HAWKAI Enterprise and ALGO MVS solutions.

In the segment performance, Cash Logistics revenue stood at ₹403 crore, down 3% year-on-year and up 1% sequentially. Segment EBIT stood at ₹81 crore, down 18% year-on-year and up 3% sequentially.

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Managed Services & Technology Solutions, including Card Services, reported revenue of ₹305 crore, up 18% year-on-year and 4% sequentially. Segment EBIT stood at ₹32 crore, down 13% year-on-year and 24% sequentially. The company said segment EBIT was impacted by the flow-through of lower BLA transaction revenue and a higher depreciation charge.

Rajiv Kaul, executive VC and CEO, said, "Q1 tested our industry with the sharpest currency-supply disruption in a decade, impacting ATM transaction volumes.

Against that, and in a seasonally weak quarter, our teams delivered our highest-ever services revenue, up 9%, with EBITDA growing 8.9% YoY and margins expanding 170 basis points sequentially, while absorbing significant cost inflation from steep minimum-wage increases in large states and higher fuel costs.

This performance is the result of two years of investment in higher technology spends, pricing discipline, growth in business from private sector banks, and a more flexible workforce model."

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Shares of CMS Info Systems Ltd ended at ₹279.95, up by ₹7.00, or 2.56%, on the BSE.