CAMS profit falls 3.71% YoY as depreciation rises 41.67%
Revenue growth lagged expense growth and margin narrowed 1.40 percentage points YoY, though operating margin recovered 0.91 percentage points sequentially.
Filed 12 May 2026, 10:38 IST · Computer Age Management Services Ltd (CAMS)
Key takeaways
- Standalone net profit fell 3.71% YoY even as operating profit rose 0.42%, with depreciation up 41.67%.
- Revenue grew 3.51% YoY but expenses rose 6.24%, narrowing operating margin by 1.40 percentage points.
- The stock fell 3.25% on the results reaction, more than its 1.52% median absolute move after the past eight results.
Price around the results
Operating profit held up, but higher depreciation cut earnings
CAMS’s standalone revenue grew 3.51% YoY to Rs 353.89 cr, while operating profit increased only 0.42% to Rs 161.1 cr. The resulting cost pressure was compounded below the operating line: depreciation rose 41.67% YoY, taking profit before tax down 3.39% and net profit down 3.71% to Rs 110.94 cr. Sequentially, revenue grew 5.83% and operating profit rose 8.00%, supporting a 5.47% increase in net profit.
Margin recovered sequentially but remains below last year
Expenses grew 6.24% YoY against 3.51% revenue growth, so operating margin narrowed by 1.40 percentage points to 45.52%. In contrast, sequential revenue growth of 5.83% exceeded expense growth of 4.09%, lifting margin by 0.91 percentage points. Other income contributed 6.81% of pre-tax profit, while the tax rate rose 0.25 percentage points YoY, so the earnings decline was not flattered by a lower tax rate.
Margin trend improves after three quarters of decline
Operating margin had declined from 46.94% in Q2FY25 to 45.06% in Q4FY25 and 44.61% in Q1FY26 before recovering to 45.52% in Q2FY26. The recovery still leaves margin 1.40 percentage points below the year-ago quarter. CAMS’s margin was 16.15 percentage points below the 61.67% median of 51 Financial Services peers that had reported.
CAMS KRA adds onboarding tools and wealth mandates
Management said CAMS KRA is using AI and automation for a 10-minute KYC process aimed at streamlining operations and attracting new clients. The presentation also flags Nexus for tracking online PAN registration and WhatsApp KYC for client onboarding. Management said the alternatives and wealth management business added 44 new mandates during the quarter.
The market reaction was unusually negative for CAMS
The stock fell 3.25% on the results reaction and was down 6.16% after five sessions, while its relative return was -4.51% over that period. This was larger than the 1.52% median absolute move across the past eight results reactions, when the stock rose three times and fell five times.
Q2FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY26 | Q1FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹354 cr | ₹334 cr | +5.83% | +3.51% |
| Other income | ₹10 cr | ₹11 cr | -4.63% | +1.92% |
| Expenses | ₹193 cr | ₹185 cr | +4.09% | +6.24% |
| Operating profit | ₹161 cr | ₹149 cr | +8.00% | +0.42% |
| Operating margin (%) | 45.52% | 44.61% | — | — |
| Interest | ₹2 cr | ₹2 cr | -4.29% | -14.75% |
| Depreciation | ₹22 cr | ₹18 cr | +19.82% | +41.67% |
| Profit before tax | ₹148 cr | ₹140 cr | +5.67% | -3.39% |
| Tax | ₹37 cr | ₹35 cr | +6.32% | -2.39% |
| Net profit | ₹111 cr | ₹105 cr | +5.47% | -3.71% |
| EPS (₹) | ₹22.42 | ₹21.28 | +5.36% | -4.19% |
Operating margin of 45.52% compares with a Financial Services sector median of 61.67% across 51 peers that have reported Q2FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.25% | -3.71% |
| Next session | -0.71% | — |
| 5 sessions | -6.16% | -4.51% |
| 15 sessions | +0.74% | — |
| 30 sessions | -5.06% | — |
Volume on the results session was 4.16× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
New orders
- CAMS added 44 new mandates during the quarter in its alternatives and wealth management business.
New initiatives
- CAMS KRA offers a 10-minute KYC process to streamline operations and attract new clients.
- CAMS KRA introduced Nexus, a dashboard for financial institutions to track online PAN registration status.
- CAMS KRA introduced WhatsApp KYC as an industry solution for client onboarding.
What to watch
- Whether operating margin holds above the Q2FY26 level of 45.52% after the 0.91 percentage-point sequential recovery.
- Whether depreciation growth moderates from 41.67% YoY.
- Progress in the 44 new alternatives and wealth management mandates and the rollout of CAMS KRA’s KYC tools.