1. Opening Hook
Rains drenched the economy, banks shut ATMs faster than your internet shuts during an RBI circular, and CMS Info Systems found itself mopping liquidity puddles. The CEO swears it’s all “transitory,” while the CFO quietly counts provisions like blessings. Amid “machine learning routes” and “gig models,” management promises a return to growth in H2—just like they promised post-COVID and post-demonetization. Will FY26’s second half finally cash out the optimism or just more ATM downtime? Keep reading—this gets juicier than a PSU RFP negotiation.
2. At a Glance
- Revenue down 3% QoQ:The rains didn’t just flood villages—they soaked CMS’s topline too.
- PAT ₹73 Cr (-20% QoQ):Profits pulled a Houdini after the PSU contract delay.
- EBIT Margin at 12.1%:The CFO calls it “temporary compression,” investors call it déjà vu.
- Cash Logistics -5%:ATMs went offline; earnings followed suit.
- Managed Services +5%:The tech side kept the lights on (and the PowerPoint alive).
- Capex ₹175 Cr:Apparently, “AI-led route optimization” needs real money too.
- Order Book ₹1,400 Cr:Enough to sound rich, not enough to feel rich.
3. Management’s Key Commentary
Rajiv Kaul (CEO):“Our youngest tech solutions business is growing rapidly post the Securens acquisition.”(Translation: The old cash business is coughing; tech’s now our shiny distraction.😏)
“We took a ₹10 crore provision to maintain balance sheet hygiene.”(Translation: Some clients ghosted us; we’re pretending it’s just “hygiene.”)
“October started strong, with positive trends.”(Translation: One good month doesn’t make a fiscal, but let’s hope you forget that.)
“Our gig model will cover 20% of retail points by March.”(Translation: Contract labour saves costs—and future ESOPs.)
“AI and ML are helping us route optimization.”(Translation: Fewer humans, more bots, fewer unions.🤖)
“No leadership incentives or ESOP vesting this year.”(Translation: Pain shared equally—unless you’re a shareholder.)
“FY26 softer, but FY27 will rebound.”(Translation: Classic “wait till next year”—corporate’s favourite lullaby.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q1 FY26 | Change | Commentary |
|---|---|---|---|---|
| Revenue (₹ Cr) | 609 | 627 | -3% | Blame 4,000 inactive ATMs |
| Managed Services & Tech (₹ Cr) | 271 | 258 | +5% | Tech kept the company breathing |
| Cash Logistics (₹ Cr) | 395 | 417 | -5% | Rural slowdown & monsoons |
| PAT (₹ Cr) | 73 | 94 | -20% | Profit took a sabbatical |
| PAT Margin | 12.1% | 14.9% | -280 bps | CFO’s stress up 280 bps too |
| Order Wins | ₹500 Cr | – | – | Mostly PSU banks; slow billing |
| Cash Balance | ₹687 Cr | ₹685 Cr | Stable | Still enough to pay for “AI agents” |
Margins dipped as PSU contracts delayed, but H2 is expected to restore order—if banks actually pay on time.
5. Analyst Questions
Unifi Capital:“So this ₹10 Cr provision—how bad is it really?”CFO:“6–9 months overdue.”(Translation: Basically, aging like unpaid telecom dues.)
Ashok Core Investments:“Tech vs Cash margins?”CEO:“We’ll disclose by year-end.”(Translation: Once we figure them out.)
Bugle Rock PMS:“ATM shutdown permanent?”Mgmt:“Temporary pruning.”(Translation: We hope it grows back.🌱)
Acuitas Capital:“Offsite ATMs shifting to on-site—impact?”Mgmt:“Favourable.”(Translation: Same pain, different address.)
6. Guidance & Outlook
Management guided to
