01 — At a Glance
The Firm That Manages Your Bank’s Money While Slowly Reinventing Itself
- 52-Week High / Low₹541 / ₹286
- Q3 FY26 Revenue₹618 Cr
- Q3 FY26 PAT₹65.3 Cr
- Q3 EPS₹3.49
- Annualised EPS (Q3×4)₹13.96
- Book Value₹142
- Price to Book2.03x
- Dividend Yield2.30%
- Debt / Equity0.10x
- YoY Profit Var-29.9%
Auditor’s Opening Note: CMS Info’s Q3 FY26 tells the story of a company getting paid ₹618 crore but only converting ₹65 crore into actual profit. That’s an 11% bottom-line conversion rate—barely better than your uncle’s catering business. Revenue grew +6.3% YoY, but profit crashed -29.9% YoY. The stock? Down 33% in a year. Clearly, the market is not amused. But SBI just bet ₹1,000 crore on them for 10 years. So someone still believes.
02 — Introduction
The Company That Moves Your Money. Then Loses It. Then Finds It.
Welcome to CMS Info Systems. They manage ATMs, cash logistics, and retail pick-up points across India. They are, quite literally, the firm your bank calls when it needs to move money safely from Point A to Point B without it mysteriously disappearing into someone’s retirement plan.
Here’s the business in one sentence: CMS installs ATMs, manages cash in transit (CIT), handles retail cash management (RCM), and increasingly, provides software-as-a-service (SaaS) solutions like remote monitoring, banking automation, and their star product, Vision AI—which watches your ATM more carefully than you watch your partner during Netflix.
But Q3 FY26 results are messy. Revenue up. Profit down. Margins compressed. Management says “we’ve bottomed out.” Investors say “we’re leaving.” Meanwhile, CMS just won a ₹1,000 crore SBI contract and is acquiring Vision AI companies because apparently, the cash logistics business is too predictable for them.
This is a story of a company in transition. The old business (Cash Logistics) is 61% of revenue but structurally declining. The new business (Managed Services) is 39% of revenue and growing in double digits. The company is caught in a painful pivot, and the concall (Feb 2026) suggested management finally understands this.
Concall Confirmation (Feb 2026): “With Q3, we have bottomed out.” — Rajiv Kaul, MD. Translation: We’ve been terrible. It’s now or never to prove ourselves. No pressure.
03 — Business Model: WTF Do They Even Do?
They Manage Money That Isn’t Theirs While Hoping Nobody Notices It’s Missing
CMS operates two segments that are slowly becoming one.
Segment 1: Cash Logistics (61% of Q3 FY26 revenue) — This is the boring, mature, dying-slowly segment. CMS runs ATMs for banks, manages cash in transit (armoured vehicles, security personnel, heartbreak), and handles retail cash management for organized retailers. They manage ~1,46,000 business points as of December 2024 and hold ~42% of India’s organized cash logistics market. Their largest customers: SBI, HDFC Bank, Axis, ICICI, etc. The economics are transaction-based and increasingly under margin pressure as banks move away from transaction pricing toward fixed contracts. Hence their margin compression.
Segment 2: Managed Services (39% of Q3 FY26 revenue) — This is where management wants you to look. Software, banking automation, remote monitoring, and Vision AI. They’ve scaled from ₹0 to ₹200 crore ARR in Hawkai (their AIoT remote monitoring solution) in just a few years. Target: ₹400 crore in FY27. These contracts are 4-7 years long, fixed-price, margin-accretive, and don’t involve actual cash (so less theft, fraud, and heartbreak).
The transition? Brutal. CMS is trying to be enterprise SaaS while also being a logistics vendor. That’s like trying to build an iPhone while still collecting dung. Not impossible. Just difficult.
ATM Cash Mgmt60%Of Cash Logistics
Retail Cash Mgmt25%Of Cash Logistics
CIT (Cash-in-Transit)15%Of Cash Logistics
Market Share (Organized)~42%Largest by far
The SBI Contract Story: ₹1,000 crore over 10 years for ~5,000 ATMs (not 10,000 like they originally hoped). Awarded December 2025. Live January 2026. Management says ₹500 crore incremental to CMS, ₹500 crore to other bidders. This is the contract that keeps the lights on in FY27. No pressure.
💬 Your bank’s ATM just ate your card. Do you know who physically goes to retrieve it? Spoiler: It’s probably a CMS employee. Worth ₹288/share? Drop your thoughts.
04 — Financials Overview
Q3 FY26: The Damage Report
Result type: Quarterly Results (Q3 FY26) | Q3 EPS: ₹3.49 | Annualised EPS (Q3×4): ₹13.96 | FY25 Full Year EPS: ₹19.58
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 618 | 581 | 609 | +6.3% | +1.5% |
| Operating Profit | 140 | 159 | 137 | -12.0% | +2.2% |
| OPM % | 23% | 27% | 23% | -400 bps | Flat |
| PAT | 57 | 93 | 73 | -38.7% | -21.9% |
| EPS (₹) | 3.49 | 5.67 | 4.46 | -38.4% | -21.7% |
The P/E Recalculation: Full year FY25 EPS was ₹19.58. CMP ₹288 ÷ ₹19.58 = P/E of 14.7x (screener shows 14.4x due to rolling updates). But that’s backwards-looking. Q3 annualised EPS is ₹13.96, which implies a forward P/E of 20.6x. That’s the real number that matters. If CMS delivers on FY27 guidance (₹2,800–2,900 cr revenue), the forward P/E might compress. Or not. Depends on if Rajiv’s 95% certainty actually means anything.
05 — Valuation: Fair Value Range
What’s This Cash Logistics ATM Operator Actually Worth?
