CMS Info Systems reports an 11% drop in net profit for June quarter due to currency supply disruptions, but highlights record services revenue and new business wins amid ongoing push for technological enhancement.
CMS Info Systems reported an 11% fall in net profit to ₹84 crore for the June quarter, down from ₹93 crore a year earlier, even as revenue inched up 1% to ₹635 crore from ₹627 crore. The business services group, which works mainly with banks, financial institutions and retailers, said the period was weighed down by the sharpest disruption in currency supply in a decade, which hit ATM transaction volumes.
Rajiv Kaul, the company’s executive vice-chairman and chief executive, said the quarter was also seasonally weak. He said the company still delivered its highest-ever services revenue and posted EBITDA growth of 9% year on year, helped by earlier investment in technology, tighter pricing, growth in private-sector banking business and a more flexible workforce model. The company also said it won new business worth ₹500 crore, led by an integrated managed services mandate from HDFC Bank, alongside two product mandates for 1,000 currency recyclers with public-sector banks and a large technology and payment solutions order for HAWKAI Enterprise and ALGO MVS.
The June-quarter figures came before an even more difficult later stage in the year. Business Standard reported that CMS Info Systems posted a 38.4% decline in consolidated net profit to ₹57.40 crore in the December quarter, even as net sales rose 6.3% to ₹618.22 crore. The company also secured a 10-year, ₹1,000 crore contract from State Bank of India for ATM cash solutions, with expected incremental revenue of ₹500 crore, while contracts with ICICI Bank and India Post moved close to full execution.
That update also showed the company pressing ahead with its technology push. Business Standard said HAWKAI Enterprise went live at a large public-sector bank and was being used for 16 AI applications, while the company declared an interim dividend of ₹2.75 a share. Company filings reviewed by The Company Check indicate full-year revenue of ₹2,487.18 crore for FY2026, up 2.58%, while profit after tax fell 18.54% to ₹303.39 crore, underlining how higher costs and margin pressure have continued to test earnings.
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