CAMS - Cams Services

📊 NSE: CAMS 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 20:39

💰 Financial Performance

Revenue Growth by Segment

Mutual Fund (MF) asset-based revenue grew 3.3% YoY in Q2 FY26, contributing 73.8% of total revenue. Non-MF revenue grew at a 28% CAGR over the last five years, reaching a 14.4% share of total enterprise revenue in Q2 FY26. Within non-MF, CAMSPay grew 26% QoQ, and CAMS KRA recorded a 31% YoY growth in FY25 to reach INR 45.4 Cr.

Geographic Revenue Split

Primarily domestic (India) focused. The company identifies as a domestic-focused infrastructure provider for the Indian financial ecosystem, with a PAN-India network of service centers.

Profitability Margins

Operating Profit Margin improved from 38.22% in FY24 to 40.39% in FY25. Net Profit Margin increased from 30.04% to 31.87% over the same period. Q2 FY26 PAT margin stood at 29.6%.

EBITDA Margin

Consolidated EBITDA margin was 44.6% in Q2 FY26, showing a 90 basis point increase from the previous quarter. Non-MF EBITDA margins are currently sub-15% (approx. 12%) but are targeted to reach 25% within two years as platforms scale.

Capital Expenditure

Not disclosed in absolute INR Cr for future periods, but management indicated that incremental investments in non-MF platforms (Bima Central, Pension, Account Aggregator) are largely over, meaning future revenue will flow directly to the bottom line.

Credit Rating & Borrowing

The company is debt-free as of FY25, except for bank guarantees for operational requirements which are 100% secured by fixed deposits. Interest coverage ratios are not relevant due to zero borrowings.

⚙️ Operational Drivers

Raw Materials

As a technology-driven service provider, primary costs are Employee Benefits (approx. 35-40% of total expenses) and Technology/Cloud Infrastructure costs.

Import Sources

Not applicable for IT-enabled services; talent and technology infrastructure are sourced domestically and through global cloud providers.

Key Suppliers

Reliance on third-party service providers for technology and operational areas; specific vendor names like AWS or Microsoft for cloud services are implied but not explicitly named.

Capacity Expansion

Processed 892.11 million transactions in FY25. AuM capacity reached INR 52 lakh Cr in Sep 2025. SIP registration capacity increased 51% YoY to 400 lakh registrations in FY25.

Raw Material Costs

Employee costs and technology expenses are the primary drivers. Management achieved a muted expense growth of less than 5% QoQ (excluding depreciation) in Q2 FY26 by controlling operational overheads.

Manufacturing Efficiency

Transaction accuracy and investor satisfaction levels are key metrics; 96.23% of customers rated services as 'Satisfied' or 'Very Satisfied' in FY25.

Logistics & Distribution

Not applicable; services are delivered digitally through platforms like myCAMS and Bima Central.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth will be driven by scaling non-MF businesses to a 20% revenue share. Key strategies include the integration of NSE KRA (revenue starting Q4 FY26), expanding the Account Aggregator (CAMSfinserv) which grew 229% YoY, and scaling the Insurance Repository (CAMSRep) via the 'Bima Central' platform. The company also targets winning top-10 fintech clients for KRA to move beyond the 'long tail' of smaller brokers.

Products & Services

Mutual Fund RTA services, KYC Registration Agency (KRA) services, Insurance Repository services, Payment Aggregation (CAMSPay), Pension Fund CRA services, and Account Aggregator services.

Brand Portfolio

myCAMS, CAMSPay, CAMS KRA, CAMSfinserv, Bima Central, Recon Dynamix.

New Products/Services

Bima Central (insurance portfolio management), Recon Dynamix, and Loan against Mutual Funds (LAMF). NSE KRA integration is expected to contribute to revenue from Q4 FY26.

Market Expansion

Expanding into the non-government pension sector (CRA) where it holds a 6.5% retail market share, and targeting the insurance sector through policy electronic-onboarding.

Market Share & Ranking

Market leader in MF RTA with ~68% AuM market share. Second-largest KYC Registration Agency (KRA). 11.6% market share in Account Aggregator (LTD basis).

Strategic Alliances

Integration with NSE KRA; strategic partnerships with 38+ new financial institutions and fintechs for KRA services.

🌍 External Factors

Industry Trends

The industry is shifting toward digital-first onboarding and platform-based financial services. CAMS is positioning itself as a 'financial infrastructure' provider, moving beyond just RTA to include payments, insurance, and pension data management.

Competitive Landscape

Competes with other RTAs and KRAs; maintains leadership by servicing 69% of equity net sales and 80% of NFO collections in Q2 FY26.

Competitive Moat

Strong moat based on high switching costs for AMCs, 68% market share, and deep integration into the MF ecosystem. The 'platform-based' nature of the business creates operating leverage where incremental revenue has low marginal costs.

Macro Economic Sensitivity

Highly sensitive to capital market performance and investor sentiment; equity net sales reached INR 1.02 lakh Cr in Q2 FY26 despite market volatility.

Consumer Behavior

Shift toward SIP-based investing; SIP collections grew 21% YoY to INR 17,555 Cr, providing a stable, recurring revenue base.

Geopolitical Risks

Low direct impact as operations are domestic, but global market volatility can affect Indian MF AuM and consequently CAMS's asset-based fees.

⚖️ Regulatory & Governance

Industry Regulations

Regulated by PFRDA for CRA operations and IRDAI for insurance repository services. Compliance with data privacy and cybersecurity norms is critical for maintaining licenses.

Environmental Compliance

ESG initiatives are updated in the Investor Presentation (pages 27-29), though specific compliance costs are not disclosed.

Taxation Policy Impact

Effective tax rate is approximately 25% based on FY25 PBT of INR 618.66 Cr and Net Tax Expense of INR 153.96 Cr.

Legal Contingencies

The company faces 'Contractual Risk' related to potential employee fraud, misconduct, or operational errors. While it maintains extensive insurance coverage, management notes it may not fully compensate for all potential losses.

⚠️ Risk Analysis

Key Uncertainties

Revenue concentration in the MF segment (87% of turnover) and top clients. Regulatory changes in AMC fee structures could indirectly pressure RTA margins.