Computer Age Management Services Limited (CAMS) reported robust performance for the fiscal year ended March 31, 2025 (FY25), with revenue increasing by 25% year-on-year.
Both Mutual Fund (MF) and Non-MF segments contributed significantly, growing around 25%. Non-MF revenue constituted 13% of the total for the year.
FY25 absolute EBITDA grew by 29.7% with a margin of 46%, while absolute PAT grew by 33% with a margin just under 32%. This growth was achieved despite market pressures from September to March.
For the fourth quarter of FY25 (Q4 FY25), revenue grew just under 15% year-on-year, but saw a quarter-on-quarter decline of 3.7% (approx ₹14 crore).
The Q4 revenue decline was largely attributed to a price adjustment for a major customer (approx ₹10-11 crore impact), with operating factors contributing only about ₹3-4 crore to the decline.
Q4 FY25 EBITDA grew about 12% year-on-year, maintaining a strong margin of 44.9%. PAT grew about 10% year-on-year with a margin of 31%.
MF business highlights include:
Market share by assets at 68%.
Overall AUM grew 24% in Q4, mirroring the industry. Equity assets crossed ₹25 lakh crore, growing 29%.
SIP inflows remained sustained, with Q4 delivering more money than Q3. Live SIP accounts grew 18% to 5.7 crore. Gross new SIP registrations for FY25 grew 51%.
Unit investor base grew significantly ahead of the market at 26%, exceeding 4 crore accounts.
Two new AMCs (Angel One and Unifi) were taken live in Q4, bringing the total live count to 21. Five more AMCs (Jio BlackRock, Pantomath, Choice, Torus Oro, CeyBank) are expected to go live in the next six months.
Non-MF business highlights include:
CAMSPay revenue grew 85% year-on-year for the quarter. Launched BIMA-ASBA and saw UPI AutoPay transactions grow 25% quarter-on-quarter. LIC of India's account authentication services have begun to scale up.
Alternatives secured 56 new mandate wins in Q4, taking the total new mandates for the year (including WealthServ) past 200.
CAMSRep (Insurance Repository) improved market share to over 40%. Signed LIC of India for repository services (digital issuance initially, expected live in July, potentially adding 15-20 lakh policies). Total e-policies now exceed 1.1 crore.
CAMS KRA had a tough quarter due to slower new account creation in capital markets but saw over 30% revenue increase for FY25 and signed 3 leading brokerages.
Fintuple entered the NPS segment and secured its first deal.
Think360 launched a PFM product and is implementing a large fixed-price contract.
Management Commentary and Outlook:
Non-MF revenue is projected to grow in excess of 20%, closer to 25% in FY26, contributing an absolute increase of approximately ₹50 crore. Payments, Alternatives, and KRA are expected key drivers.
The uncertainty regarding the major customer price adjustment is largely behind; approximately 50% of the impact is reflected in the Q4 FY25 base, with the remaining 50% expected to impact Q1 and Q2 FY26.
AUM fee yield (bps) for Q4 FY25 was 2.24 bps. The average yield for FY25 was 2.33 bps (a 6-7% drop from FY24). The average yield for FY26 is expected to drop by approximately 7-8% compared to FY25. The exit yield (Q4 FY26) is projected to be closer to a 4-4.5% drop from the Q4 FY25 yield (around 2.15-2.16 bps).
Costs are expected to be controlled, with an increase of less than 10% projected for FY26 compared to FY25.
The combined EBITDA margin for Non-MF businesses is expected to improve from 10-15% in Q4 FY25 to closer to 20% in FY26.
Despite the price adjustment impact in the coming quarters, the management believes the overall revenue line will not breach the ₹355-360 crore mark in Q1 FY26 before growth resumes.
No other major contracts are up for renewal in FY26.