CAMS sustains year-on-year margin gains as sequential momentum pauses
Revenue was broadly flat sequentially, but slower cost growth year on year supported an operating-margin expansion of 2.70 percentage points.
Filed 03 Aug 2026, 14:04 IST · Computer Age Management Services Ltd (CAMS)
Key takeaways
- Consolidated revenue grew 11.54% year on year as expenses rose 6.21%, lifting operating margin by 2.70 percentage points to 46.26%.
- Sequential momentum paused: revenue fell 0.05% and faster expense growth narrowed operating margin by 0.07 percentage points.
- Other income contributed 9.44% of pre-tax profit, while the tax rate rose 1.38 percentage points year on year to 26.55%.
Price around the results
Year-on-year growth outpaced operating costs
Consolidated revenue increased 11.54% year on year to Rs 395.03 cr, while expenses rose 6.21%. That gap drove an 18.45% rise in operating profit and lifted operating margin by 2.70 percentage points to 46.26%. Net profit grew 17.64%, despite the tax rate increasing by 1.38 percentage points.
Sequential growth stalled and margin edged lower
Revenue was almost unchanged from Q4FY26, declining 0.05%, while expenses increased 0.09%. Costs therefore grew faster than revenue, narrowing operating margin by 0.07 percentage points to 46.26%. The margin had risen for three consecutive quarters from 43.56% in Q1FY26 to 46.33% in Q4FY26, so this quarter marks a pause rather than a reversal of that broader improvement.
Other income remains material to pre-tax profit
Other income grew 26.76% year on year and 30.41% sequentially. It accounted for 9.44% of pre-tax profit, making it a meaningful contributor to reported earnings beyond operating performance. Sequentially, the tax rate also rose by 2.08 percentage points, limiting the conversion of pre-tax profit into net profit.
Margin remains below the reported peer median
CAMS's 46.26% operating margin was 16.75 percentage points below the 63.01% median for 43 Financial Services peers that had reported the quarter. The company ranked 15th from the bottom on this measure, placing its margin below the sector comparison despite the year-on-year improvement.
No post-results move is available yet
The results were filed at 14:04 IST, and no post-results market reaction is included yet. Across the last eight result reactions, the stock rose three times and fell five times; the median absolute move was 3.94%, with the six most recent moves ranging from -5.25% to +9.11%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹395 cr | ₹395 cr | -0.05% | +11.54% |
| Other income | ₹16 cr | ₹13 cr | +30.41% | +26.76% |
| Expenses | ₹212 cr | ₹212 cr | +0.09% | +6.21% |
| Operating profit | ₹183 cr | ₹183 cr | -0.21% | +18.45% |
| Operating margin (%) | 46.26% | 46.33% | — | — |
| Interest | ₹1 cr | ₹2 cr | -3.27% | -23.71% |
| Depreciation | ₹25 cr | ₹28 cr | -12.45% | +17.80% |
| Profit before tax | ₹173 cr | ₹166 cr | +4.20% | +19.85% |
| Tax | ₹46 cr | ₹41 cr | +13.09% | +26.41% |
| Net profit | ₹127 cr | ₹125 cr | +1.32% | +17.64% |
| EPS (₹) | ₹5.16 | ₹5.10 | +1.18% | -76.62% |
Operating margin of 46.26% compares with a Financial Services sector median of 63.01% across 43 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 46.26% after the sequential decline of 0.07 percentage points.
- Whether revenue moves beyond the near-flat sequential level of Rs 395.03 cr.
- Whether other income remains close to 9.44% of pre-tax profit.