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    Computer Age Management Services Limited

    CAMSGood
    Financial Services·23 Jan 2026
    Management Summary

    CAMS delivered a resilient Q3 FY26, characterized by record absolute EBITDA and significant margin expansion to 46% despite previous price resets. The company is successfully diversifying, with non-MF businesses growing at 24%+ and now contributing 14.5% to the top line. Management highlighted a remarkable trend of flat headcount over the last year despite substantial volume growth, underscoring the success of their technology-led productivity initiatives.

    Highlights

    8

    • Enterprise revenue grew 5.5% YoY and 3.6% QoQ, despite the impact of a price reset earlier in the year.

    • Non-MF revenue grew over 24% YoY, expanding its contribution to 14.5% of total revenue.

    • Absolute EBITDA reached an all-time high of ₹179 crores, absorbing ₹2.8-3 crores in labour code adjustments.

    • EBITDA margin expanded to 46%, up from 43.5% three quarters ago, driven by productivity gains.

    • Mutual Fund AUM crossed ₹55 lakh crores with a stable 68% market share; Equity AUM crossed ₹30 lakh crores.

    • New SIP registrations reached 1.6 crores for the quarter, representing 18% YoY growth.

    • Alternatives (AIF/PMS) revenue grew 16% YoY, with AUM exceeding ₹3 lakh crores.

    • CAMSPay base business grew 24% YoY, while total segment growth reached 59% including the new Payment Gateway business.

    Key financials

    Single quarter

    06 metrics
    1. 01Enterprise Revenue—+5.5%YoY
    2. 02Absolute EBITDA₹179 Cr+3.5%YoY
    3. 03EBITDA Margin46%+2%QoQ
    4. 04MF AUM₹55 Cr+18%YoY
    5. 05Non-MF Revenue Growth24%+24%YoY

    Segment breakdown

    Mutual Fund (MF) RTA
    3.3% Revenue Growth68% Market Share66.4% Equity AUM Market Share
    Non-MF Business
    14.5% Revenue Contribution24% Revenue Growth13% EBITDA Margin
    Alternatives (AIF/PMS)
    16% Revenue Growth₹3 Cr AUM
    CAMSPay
    24% Base Business Growth59% Total Growth (inc. PG)
    List

    Guidance & targets

    6
    CategoryTargetPriority
    Revenue
    Non-MF Revenue Growth
    20%+
    		High
    Revenue
    Non-MF Revenue Contribution
    20%
    		High
    Revenue
    Non-MF Revenue Scale
    ₹500 crores
    		Medium
    Margin
    Consolidated EBITDA Margin
    45%+
    		High
    Margin
    Non-MF EBITDA Margin
    25-30%
    		Medium
    Other
    Cost Increase Cap
    10-11%
    		High

    Risks & concerns

    4
    RiskSeverity

    Regulatory TER Adjustments and Exit Load Removal

    Potential revenue impact estimated at ₹20-25 crores; management believes GST benefits may partially offset this. — Both acknowledged

    medium

    Yield Pressure from Price Resets

    Management noted that the yield reset impact is largely behind them, with yields now in a 'steady state'. — Management acknowledged

    low

    New Labour Code Implementation

    Gratuity impact of ₹2.8-3 crores already absorbed in Q3; other rules pending notification but expected to be minor. — Management acknowledged

    low

    Areas of Evasion(1)

    • Specific margin correlation of the new technology platform (declined to give exact numbers yet).

    Q&A highlights

    3

    “the impact could be -- I mean the boundaries of the impact could be INR20 crores, INR25 crores overall for CAMS, but we will wait and see.”

    Quantifies the potential downside risk from proposed regulatory changes in the mutual fund industry.

    asked by Supratim Datta, Jefferies

    2 min read5 chapters

    Detailed Narrative

    01

    Non-MF Diversification Gains Momentum

    The non-mutual fund segment is emerging as a critical growth engine, recording 24%+ YoY growth in Q3 FY26. This segment now contributes 14.5% of total enterprise revenue, up from previous levels, with a long-term target of reaching 20% contribution within the next 2.5 to 3 years. Management is particularly focused on driving the EBITDA margins of this portfolio from the current 13%+ to a target range of 25-30% as these platform-based businesses achieve scale.

    02

    Operating Leverage through Technology

    A standout highlight of the call was the company's ability to scale without increasing headcount. Despite Mutual Fund AUM growing 18% YoY and transactions increasing significantly, total headcount remained flat throughout calendar year 2025. Management credited this to deep investments in AI-based data extraction, cloud implementation, and automated reconciliation, which have allowed them to absorb new AMC go-lives within the existing cost base.

    03

    Navigating Regulatory Headwinds

    Management addressed investor concerns regarding potential TER (Total Expense Ratio) adjustments and the removal of exit loads. They quantified the potential 'boundary' of the impact at ₹20-25 crores for CAMS. However, they noted that most of their clientele would not be significantly impacted and that potential GST advantages could offset some of the accretion loss, maintaining a stable outlook on yields for the next 18 months.

    04

    Strong Performance in Payments and Alternatives

    CAMSPay and the Alternatives segment showed robust performance. CAMSPay's base business grew 24%, while the addition of the Payment Gateway business pushed total segment growth to 59%. In the Alternatives space, revenue grew 16% YoY, and AUM crossed the ₹3 lakh crore milestone. Management expects these segments to continue their high-growth trajectory, with CAMSPay specifically targeting ₹100 crores in revenue next year.

    05

    Financial Resilience and Shareholder Returns

    CAMS reported its highest-ever absolute EBITDA of ₹179 crores, even after absorbing one-time📎 costs related to labour code adjustments. The company maintains a strong Return on Capital Employed (ROCE) of nearly 40% and continues its policy of distributing 65% of profits as dividends, declaring a ₹3.5 per share dividend for the quarter.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.