Q1 2027 Computer Age Management Services Ltd Earnings Call Transcript
Key Points
- EBITDA grew 18% YoY to INR 183 crores, the highest ever, with operating EBITDA margin expanding 270 bps to 46.4%.
- Non-MF revenue grew 28% YoY, driven by strong performance in payments (up ~70%) and alternatives (mid-20s growth).
- MF AUM grew nearly 15% YoY to INR 56 lakh crores, with equity AUM, net sales, and SIP accounts all outperforming industry growth.
- AI-led automation is driving productivity gains, with headcount down 225 QoQ and plans for a 4-5% reduction in FY27, supporting cost control.
- New growth initiatives are gaining traction: SIFs have accumulated over INR 12,000 crores in AUM, and GIFT City retail is starting to scale with 10,000 investors.
- The company is confident in its FY27 guidance of 13% revenue growth and 16% EBITDA growth, with stable yields and a strong pipeline of new AMC clients.
- KRA revenue declined due to a ~30% price reduction effective April 1, impacting non-MF margins in Q1.
- Non-asset-based MF revenue declined YoY due to lower NFO activity and the wind-down of certain client arrangements.
- Employee cost growth is expected to be around 5% for the year, but the deferral of appraisals to Q2 will add cost pressure in the current quarter.
- The company faces rising costs for cloud, data center, and hardware due to AI-driven demand, which could offset some productivity gains.
- Several non-MF businesses, including account aggregator, pension, and CAMS Repository, are not yet EBITDA positive, with the account aggregator facing adoption bottlenecks.
- The re-architecture project will lead to higher depreciation in coming years, with an expected INR 4-5 crores increase in FY27 and more in FY28.
(audio in progress)
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Nikunj Seth from MUFG Intime. Thank you, and over to you, sir.
Thank you, Sumit. Good morning, everyone. Welcome to Q1 FY27 earnings conference call of Computer Age Management Services Limited. From the management, we have with us Mr. Anuj Kumar, MD and CEO; Mr. Ram Charan, CFO; and Mr. Anish Sawlani, Head Investor Rations.
Before we proceed to the opening remarks, I would like to give a small disclaimer that this conference may contain certain forward-looking statements about the company, which are based on beliefs, opinions and expectations of the company as on date. These statements are not guarantees of future performance and involve risks and uncertainties. A detailed disclaimer has been published in the investor presentation.
Now I would like to hand over the conference to Mr. Anuj Kumar for his opening remarks. Thank
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