This article first appeared on GuruFocus .
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Enterprise Revenue Growth:5.5% year-on-year, 3.6% quarter-on-quarter.
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Non-MF Revenue Growth:Over 24% quarter-to-quarter basis.
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Absolute EBITDA:INR 179 crores, highest ever, up from INR 173 crores last year.
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Profit Margin:Increased to 46% from 43% in previous quarters.
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Mutual Fund AUM:Crossed INR 55 lakh crore, 18% year-on-year growth.
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Equity Assets:Crossed INR 30 lakh crores, market share increased to 66.4%.
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Equity Net Sales:INR 84,000 crores, market share of 71%.
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New SIP Registrations:Grew 18% to 1.6 crore.
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SIP Collections:INR 55,000 crore to INR 56,000 crore in the quarter, 20% year-on-year growth.
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Non-MF Revenue Contribution:Expanded to 14.5%.
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CAMSPay Growth:Base business grew 24%, total growth including PG business 59%.
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Alternatives Revenue Growth:16% year-on-year, AUM exceeds INR 3 lakh crore.
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CAMSRep Revenue Growth:15% in the third quarter, market share at 40%.
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Dividend Declared:INR 3.5 per share.
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Return on Capital Employed (ROCE):Close to 40%.
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Release Date: January 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Computer Age Management Services Ltd ( BOM:543232 ) reported a solid quarter with enterprise revenue growing 5.5% year-on-year and 3.6% quarter-on-quarter.
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Non-Mutual Fund (MF) revenue grew over 24% year-on-year, surpassing the company's target of 20% growth.
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The company's absolute EBITDA reached its highest ever at INR179 crores, despite absorbing labor code adjustments.
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Market share in equity assets increased from 60% to 66.4%, indicating a significant share gain.
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CAMS KRA and CAMSPay showed strong performance, with CAMSPay's base business growing 24% and the payment gateway business contributing to a 59% overall growth.
Negative Points
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The company faces potential impacts from regulatory changes, such as the loss of 5 basis points exit load, which could lead to renegotiation of contracts.
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There is a slowdown in account opening momentum in broader capital markets, affecting CAMS KRA's growth.
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Despite strong growth in non-MF revenue, the current margin run rate for non-MF business is only 13%, indicating room for improvement.
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The competitive intensity in acquiring new AMC clients remains high, which could impact pricing and profitability.
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The company is cautious about the impact of potential regulatory changes on the KRA business, which could affect pricing and revenue.
Q & A Highlights
Q: What impact will the loss of 5 basis points exit load have on your contracts, and will it lead to renegotiations? A: Anuj Kumar, Managing Director, stated that the impact is expected to be marginal. While some large clients might be affected, the overall impact on CAMS is estimated to be between INR20 crores to INR25 crores. However, no immediate renegotiations are anticipated, and the company believes in the value it provides to retain current pricing.
Q: How are margins in the non-MF business tracking, and what operating leverage is being achieved? A: Anuj Kumar explained that platform businesses like CAMS KRA and CAMSRep have the potential to achieve 30%-40% EBITDA margins. Currently, the non-MF business is at a 13% EBITDA margin, with aspirations to reach 25%-30% in the next couple of years as the business scales.
Q: What is the growth trajectory for the payment aggregator and payment gateway business? A: Anuj Kumar highlighted that CAMSPay has grown significantly, with expectations to reach INR100 crores next year. The business is expanding both through existing clients and new offerings, aiming for a non-MF revenue of INR500 crores in five years with a 30% EBITDA margin.
Q: Are there any major AMCs coming up for renewal in the next 18 months? A: Sesha Ramcharan, CFO, confirmed that no major AMCs are due for renewal in the current financial year. Only a few mid-sized AMCs are up for renewal, and the company expects a stable yield regime for the next 18 months.
Q: How is the competitive intensity for acquiring new AMC mandates? A: Sesha Ramcharan noted that competitive intensity remains high, but CAMS focuses on selling premium value. The company successfully took six AMCs live last year and aims to take another five to six live this year, maintaining its focus on value rather than competing on price.
Q: What is the current margin run rate for the non-MF business, and what is the mix of non-MF and MF clients in CAMSPay? A: Sesha Ramcharan stated that the non-MF business has a 13% EBITDA margin, with CAMSPay's revenue now less than 50% dependent on mutual funds, indicating diversification into non-MF clients.
Q: What is the outlook for cloud implementation and its impact on margins? A: Anuj Kumar explained that the cloud implementation is expected to bring significant efficiencies, with a focus on automation and productivity. While specific margin impacts are not disclosed, the company expects these efficiencies to be reflected in the P&L over time.
Q: How does CAMS plan to sustain profitability while funding growth in newer businesses? A: Sesha Ramcharan emphasized the balance between operating leverage and disciplined capital allocation. The company continues to invest in technology and non-MF businesses while maintaining strong margins, aiming for long-term sustainability and growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
