CMS Info Systems reports steady Q3 FY25 growth with rising profitability

CMS Info Systems Limited, a leading business services provider in India, has reported steady financial growth for the third quarter of the fiscal year 2025, underpinned by strong performance in its cash logistics business. The company recorded a 7% increase in profit after tax (PAT) and an expansion in profit margins to 16%, despite revenue growth remaining relatively flat.

The financial performance for the nine months ending December 31, 2024, reflects an increase in revenue by 10.3% year-over-year (YoY) to INR 1,805 crore. Meanwhile, PAT rose by 7.5% to INR 275 crore, with a steady margin of 15.2%, reinforcing the company’s commitment to operational efficiency and market share expansion.

In the third quarter alone, revenue stood at INR 581.5 crore, largely unchanged from the previous year. However, net profit improved by 7% to INR 93 crore, driven by cost optimizations, higher-margin services, and increased demand in the cash logistics segment.

What Is Driving Growth in CMS Info Systems’ Cash Logistics Business?

The cash logistics segment continued to be the primary revenue driver, posting a 7.8% YoY increase in Q3 FY25, reaching INR 404 crore for the quarter and INR 1,181 crore for the nine-month period. This cash logistics growth reflects expanding service demand from banking and financial institutions, as well as CMS Info Systems’ ability to secure new contracts in a competitive market.

CMS Info Systems also expanded its market presence, with a 150 basis point increase in revenue market share, bringing its total market share to 42%. Additionally, the company expanded its business points by 10% to 146,000 locations, further strengthening its cash management network across India.

In contrast, the Managed Services & Technology Solutions business saw a decline in revenue by 9.7% YoY to INR 210 crore in Q3 FY25, with EBIT contracting by 8.5%. This temporary slowdown was attributed to fluctuations in demand for certain automation services. However, CMS Info Systems continues to focus on long-term technology investments to ensure sustained future growth.

How Is CMS Info Systems Expanding Its AI and Surveillance Solutions?

Beyond cash logistics, CMS Info Systems is diversifying its revenue streams by leveraging AI-powered remote monitoring solutions. The company secured a new mandate from a major quick-commerce brand, deploying AI-driven surveillance for dark stores and warehouses. This strategic move positions CMS Info Systems as a key technology partner in AI-driven security solutions, marking a significant expansion beyond its core BFSI sector.

Additionally, investment in AI-based technology is increasing, with tech spending rising from 1% to 1.5% of total revenues. This focus on artificial intelligence and automation aligns with growing industry demand for enhanced security and efficiency in financial transactions and logistics.

What Does CMS Info Systems’ Leadership Say About the Future?

Rajiv Kaul, Executive Vice Chairman, Whole-Time Director, and CEO of CMS Info Systems, highlighted the company’s long-term strategy and market positioning, stating:

“FY25 is a year of consolidation following our strong 20%+ revenue CAGR between FY21 and FY24. Our focus remains on market share expansion, operational efficiency, and technology-led growth. With continued investment in AI-based monitoring solutions and automation, CMS Info Systems is well-positioned for accelerated growth in FY26.”

Kaul also emphasized that the company is committed to strengthening its core business while scaling its technology offerings. He noted that recurring revenue streams are becoming a larger share of overall earnings, providing greater stability and predictability for future financial performance.

What Is the Outlook for CMS Info Systems in FY26?

CMS Info Systems remains focused on scaling its market presence, enhancing its technology portfolio, and securing high-value contracts to drive sustained growth. The company’s strong cash logistics growth is expected to continue, alongside expanding AI-powered security solutions that cater to a broader range of industries.

With a steadily increasing market share and new contract wins worth INR 700 crore year-to-date, CMS Info Systems is well-positioned to capitalize on demand for financial security services, cash logistics, and AI-powered automation in FY26.

The company’s complete Q3 FY25 financial performance report is available on its investor relations website, with an earnings call scheduled for February 6, 2025, at 12:00 PM IST to discuss the results in detail.