Skip to content

    Computer Age Management Services Q2 FY26 earnings call

    CAMSGood
    Financial Services·29 Oct 2025
    Management Summary

    CAMS delivered a record-breaking quarter characterized by strong sequential growth across both mutual fund and non-mutual fund segments. Despite anticipated yield compression from large customer repricing, the company successfully scaled revenue to new peaks through record equity inflows and a sharp rebound in the KRA business. Management expressed high confidence in maintaining margins through automation and targeting significant non-MF expansion over the next two years.

    Highlights

    7

    • Achieved highest ever quarterly revenue in Q2 FY26, with MF revenue growing 6.4% QoQ and non-MF growing 17.9% QoQ.

    • Mutual Fund AUM crossed ₹52 lakh crores in September and touched ₹55 lakh crores in October; market share remains stable at 68%.

    • Equity net sales reached a record high of over ₹1 lakh crore in the quarter, with net sales market share improving to 69%.

    • SIP collections grew 21% YoY, with live SIP market share increasing to 63.4% and new registrations exceeding 1.14 crores.

    • EBITDA margins returned to over 44%, with PBT at approximately 40% and PAT at 29.6%.

    • Non-MF segment now contributes 14.4% of total revenue, driven by a 45% QoQ rebound in KRA revenue and 26% growth in CAMS Pay.

    • Yield compression of 0.04 bps occurred as guided, with current yields sitting between 2.0 and 2.10 bps.

    Concerns

    1

    • SEBI Consultation Paper on TER Cuts

    Key financials

    Single quarter

    05 metrics
    1. 01Revenue Growth (QoQ)6.4%+3.2%YoY
    2. 02EBITDA Margin44%
    3. 03PAT Margin29.6%
    4. 04MF Yield2.05 bps-1.9%QoQ
    5. 05SIP Collection Growth21%+21%YoY

    Segment breakdown

    Mutual Fund (MF)
    6.4% Revenue Growth (QoQ)₹52.0L Cr AUM68% Market Share
    Non-Mutual Fund (Non-MF)
    17.9% Revenue Growth (QoQ)14.4% Revenue Share45% KRA Revenue Growth (QoQ)
    List

    Guidance & targets

    5
    CategoryTargetPriority
    Revenue
    Non-MF Revenue Growth
    20%
    		Medium
    Revenue
    Absolute Revenue Growth
    ₹500 crores
    		High
    Margin
    Non-MF EBITDA Margin
    25%
    		High
    Margin
    Yield Depletion
    < 0.02 bps
    		Medium
    Other
    Expense Growth
    10-11%
    		High

    Risks & concerns

    4
    RiskSeverity

    SEBI Consultation Paper on TER Cuts

    New SEBI paper suggests potential TER cuts (5-15 bps impact); management says it's too early to conjecture on the impact to AMC rates. — Analyst acknowledged

    high

    Yield Compression from Telescopic Pricing

    Ongoing yield depletion is inherent in 'telescopic' contracts as AUM grows, though management expects it to be moderate (<0.02 bps). — Management acknowledged

    medium

    Non-MF Business Break-even Challenges

    Newer lines like Insurance and Account Aggregator require ₹10-15 crores revenue scale to break even; currently some are loss-making. — Management acknowledged

    low

    Areas of Evasion(1)

    • Specific pricing rates for KRA fetch vs. creation were kept general ('very stable').

    Q&A highlights

    3

    “This 30% contribution has got built... our focus always has been to get those clients... ask them to contribute 10% to 20% to CAMS-KRA uploads and downloads, and then move from there.”

    Confirms that the KRA business is successfully diversifying into non-MF clients (fintechs/brokers) to drive growth.

    asked by Madhukar Ladha, Nuvama Wealth

    2 min read5 chapters

    Detailed Narrative

    01

    Record Revenue and AUM Milestones

    CAMS achieved its highest ever quarterly revenue in Q2 FY26, driven by a 6.4% QoQ growth in Mutual Fund revenue and a significant 17.9% jump in non-MF revenue. The company's AUM reached ₹52 lakh crores in September and surged further to ₹55 lakh crores in October. This growth was supported by record equity net sales exceeding ₹1 lakh crore, where CAMS captured a 69% market share of net sales, up from 65% previously.

    02

    Yield Compression Stabilizes Post-SBI Repricing

    Management confirmed that the anticipated yield compression of 0.04 bps occurred this quarter, primarily due to the final impact of the SBI price reduction. Yields now stand between 2.0 and 2.10 bps. CFO Ram Charan noted that parity has been reached among the top three customers, and no major renegotiations are expected for at least the next 18 months, with future depletion limited to standard telescopic pricing of less than 0.02 bps.

    03

    Non-MF Segment Rebounds Sharply

    The non-MF segment showed strong resilience, with revenue share improving to 14.4%. The KRA business saw a 45% QoQ revenue rebound after a muted Q1, adding 38 new clients. CAMS Pay also grew 26% QoQ, benefiting from UPI momentum. Management is targeting a 20% YoY growth for the non-MF segment and expects EBITDA margins for this portfolio to expand from sub-15% to 25% within the next two years as newer lines like Insurance and Account Aggregator reach scale.

    04

    Operational Efficiency and AI Integration

    CAMS is focusing on automation to maintain its 44%+ EBITDA margins. The 'RE-ARC' project, a re-architecture of their core platform, is set to go live in phases starting late FY26, which is expected to significantly reduce manual labor dependence. Additionally, the company unveiled 'CAMS AI,' a suite of artificial intelligence solutions designed to enhance internal productivity and provide external solutions for the broader financial ecosystem.

    05

    Strategic Expansion and GIFT City Footprint

    The company is deepening its presence in GIFT City, servicing over 30 clients and launching the first outbound retail fund (DSP's global equity fund). Management also highlighted the successful migration of Taurus AMC and the onboarding of six new AMCs within the calendar year, including Jio BlackRock and Angel One. This rapid onboarding (6X the historical workload) demonstrates the organization's increased maturity and operational capacity.

    This is an AI-generated summary of a publicly available earnings call transcript.