In the dynamic landscape of India’s financial services sector, Computer Age Management Services (CAMS) continues to solidify its position as the leading registrar and transfer agent (RTA) for mutual funds. Investors eagerly await updates on CAMS Q2 results FY26, especially with the recent announcement of a generous interim dividend. As the mutual fund industry surges forward with assets under management (AUM) crossing ₹72 lakh crore in mid-2025, CAMS reports a milestone quarter. This comprehensive analysis dives deep into the CAMS results today, explores the CAMS dividend 2025 payout details, and deciphers the latest CAMS share news amid a fluctuating market. From revenue breakthroughs to profit nuances and competitive edges, we uncover why CAMS remains a cornerstone for investors eyeing long-term growth in India’s booming asset management space.
Overview of CAMS: Powering India’s Mutual Fund Revolution
Computer Age Management Services Limited, or CAMS, stands as the backbone of India’s mutual fund ecosystem. Founded in 1988 and headquartered in Chennai, the company delivers technology-driven infrastructure and services to over 28 asset management companies (AMCs), handling everything from transaction processing to compliance reporting. With a commanding 68% market share in mutual fund RTA services, CAMS processes billions in transactions annually, ensuring seamless operations for giants like HDFC Mutual Fund, ICICI Prudential, and SBI Mutual Fund.
The company’s growth mirrors the explosive expansion of India’s mutual fund industry. As of May 2025, the sector’s AUM reached an astonishing ₹72.2 lakh crore, reflecting a 20% compound annual growth rate (CAGR) over the past decade—outpacing even the U.S. industry’s 8% CAGR. Systematic Investment Plans (SIPs) have fueled this surge, with monthly inflows hitting ₹26,632 crore in April 2025, up from ₹20,371 crore a year earlier. CAMS capitalizes on this momentum through its core mutual fund segment, which contributes over 85% of revenues, alongside diversified arms like CAMSPay (digital payments) and CAMSRep (insurance repository).
What sets CAMS apart? Its debt-free balance sheet boasts ₹477 crore in operating cash flow for FY25, enabling consistent shareholder rewards. Institutional investors hold 67.66% of the equity, signaling strong confidence. As CAMS share news evolves, the stock trades at a premium—42 times trailing earnings—reflecting expectations of sustained double-digit growth. Yet, recent quarters highlight the need for vigilant monitoring amid rising expenses and regulatory shifts.
CAMS Q2 FY26 Results: Key Financial Highlights and Revenue Surge
CAMS unveiled its CAMS Q2 results FY26 on October 28, 2025, painting a picture of resilience in a quarter marked by market volatility. The board approved consolidated figures for the period ended September 30, 2025, revealing record-breaking performance in several metrics. Investors poring over CAMS results today will note the company’s ability to navigate headwinds like geopolitical tensions and U.S. reciprocal tariffs, which briefly rattled domestic inflows.
At the forefront, consolidated revenue from operations soared to ₹376.74 crore, marking the highest quarterly figure in CAMS’s history. This represents a robust 6.4% quarter-on-quarter (QoQ) increase from ₹354.15 crore in Q1 FY26 and a modest 3.2% year-on-year (YoY) rise from ₹365.17 crore in Q2 FY25. Analysts had penciled in ₹370 crore, so CAMS comfortably exceeded expectations, underscoring operational efficiency.
Equity net sales hit an all-time high of over ₹1.02 lakh crore, boosting CAMS’s net sales market share to 69% from 65% in the prior quarter. The mutual fund segment drove this momentum, with transaction fees and annual management charges (AMC) benefiting from record SIP contributions and equity inflows of ₹4.17 lakh crore in FY25. Non-mutual fund revenues, including fintech and insurance services, climbed to 14.4% of the total pie, up from previous levels, thanks to CAMSPay’s 26% QoQ revenue growth and 25 new deals inked during the quarter.
Expenses, however, tempered the enthusiasm. Total costs rose to ₹235 crore, a 9% YoY jump from ₹215 crore, primarily due to elevated “other expenses” like technology upgrades and marketing pushes. Employee costs and administrative outlays also edged higher, reflecting investments in talent and digital infrastructure to handle the industry’s 23% AUM growth to ₹65.74 lakh crore in FY25.
Profitability metrics offer a mixed bag. Earnings before interest, tax, depreciation, and amortization (EBITDA) expanded 8.6% QoQ to ₹167.6 crore, with margins improving 93 basis points to 44.49%. Yet, consolidated net profit after tax (PAT) settled at ₹114.94 crore, a 5.4% QoQ uptick from ₹109.09 crore but a 6.15% YoY dip from ₹122.47 crore. This below-estimate outcome—analysts forecasted ₹120 crore—stems from the expense creep outpacing revenue gains.
Earnings per share (EPS) mirrored this trend at ₹23, down from ₹25 YoY but up from ₹22 QoQ. Operating margins held steady at around 16.3%, a notch above Q2 FY25’s 15.1%, signaling cost controls amid expansion. Overall, CAMS Q2 results FY26 demonstrate steady progress, with revenue hitting new peaks while profitability faces margin pressures. As the company eyes H1 FY26 closure, these numbers affirm its leadership in a sector projected to reach ₹1.17 trillion AUM by 2030 at a 6.62% CAGR.
CAMS Dividend 2025: Shareholder Rewards with ₹14 Interim Payout
One of the standout announcements in the CAMS results today was the board’s approval of an interim dividend of ₹14 per equity share for FY26. This equates to a 250% payout on the face value, maintaining CAMS’s reputation for shareholder-friendly policies. The record date is set for November 7, 2025, with payments to follow shortly thereafter for eligible shareholders.
This move aligns with CAMS’s consistent dividend history, boasting a 64.62% payout ratio and a 1.82% yield—competitive yet not the highest in the peer group, where Aditya Birla Sun Life AMC offers 2.97%. Over the past five years, CAMS has distributed over ₹500 crore in dividends, supported by its robust cash generation. The ₹14 dividend underscores confidence in free cash flows, even as YoY profit dipped slightly.
For dividend hunters tracking CAMS dividend 2025, this payout arrives at an opportune time. With the stock’s ex-dividend date looming, it could provide a buffer against volatility. Historically, such announcements have buoyed sentiment; post the FY25 final dividend, shares rallied 5% in a week. Investors should note tax implications: dividends qualify for the 10% TDS threshold above ₹5,000 for residents. As CAMS balances growth capex with returns, this interim gesture reinforces its appeal in a portfolio seeking stability amid India’s mutual fund boom.
CAMS Share News: Market Reaction and Price Volatility Post-Results
The release of CAMS Q2 results FY26 triggered immediate ripples in CAMS share news. Shares opened higher on October 29, 2025, settling 0.50% up at ₹3,985.20 on the NSE, bucking a 0.11% Nifty 50 dip. However, profit-taking ensued, with the stock plunging nearly 7% intraday to a low of ₹3,718.10 before recovering to close down 5.2% at ₹3,777. Year-to-date, CAMS has shed 26.3%, underperforming the Nifty Financial Services index’s 12% gain, amid broader sector concerns like SEBI’s proposed mutual fund fee curbs.
What drove the sell-off? The YoY PAT decline to ₹114.94 crore, below the ₹120 crore consensus, overshadowed revenue highs. Analysts at MarketsMojo flagged “margin pressure dampening solid revenue growth,” rating the quarter “flat” on financial trends. Trading at 42x trailing P/E and 17.64x book value, CAMS’s premium valuation demands flawless execution, which this quarter fell short of.
Yet, positives abound. The stock’s 6.81% 12-month return and 21.48% YTD (pre-dip) reflect underlying strength. Brokerages like Bajaj Broking maintain a “buy” with targets up to ₹5,058, citing AUM tailwinds and new mandates from ASK Asset Managers and Alphagrep. Recent corporate actions, including a 1:5 stock split earlier in October, aim to enhance liquidity. As CAMS share price stabilizes around ₹3,800 support, long-term bulls eye ₹4,500 by FY26 end, driven by 15% RTA market CAGR.
Revenue Breakdown: Mutual Funds Lead, Diversification Gains Traction
Delving deeper into CAMS results today, revenue streams reveal a balanced yet core-heavy portfolio. The mutual fund RTA business, CAMS’s bread-and-butter, generated ₹323 crore—86% of total—up 4% YoY, propelled by 23% industry AUM growth to ₹65.74 lakh crore in FY25. Equity schemes dominated, with sectoral/thematic funds surging 49.94% YoY and multi-cap 35.79%. CAMS’s 68% market share, serving 10 of the top 15 AMCs, captured ₹1.02 lakh crore in equity sales.
Diversification shines through non-mutual segments. CAMSPay, the payment aggregator arm, reported 26% QoQ growth to ₹54 crore, fueled by 25 new partnerships and a user base expansion. CAMSRep’s Bima Central added Tata AIA as its fourth insurer, pushing unique users past 12 lakh and earning two international awards. The KRA (KYC Registration Agency) business surged 45% QoQ, onboarding 38 institutions.
Internationally, Think360.ai secured two U.S. clients, including a decacorn, boosting cross-border revenues. This mix mitigated risks from domestic volatility, with non-MF share rising to 14.4%. Looking ahead, CAMS targets 20% non-core growth in FY26 via fintech integrations, aligning with India’s digital economy push.
Profitability Analysis: Margins Under Scrutiny Amid Expense Pressures
Profit dynamics in CAMS Q2 FY26 results warrant close examination. While PAT rose 5.36% QoQ to ₹114.94 crore, the 6.15% YoY slide highlights vulnerabilities. EBITDA margins expanded to 44.49%, a 93 bps QoQ gain, thanks to scale efficiencies in transaction processing. However, net margins contracted to 30.53% from 33.55% YoY, as expenses ballooned 9% to ₹235 crore.
Key culprits? “Other expenses” jumped due to R&D in AI-driven compliance tools and marketing for CAMSPay. Employee costs, at 22% of revenue, reflect hires for a 15% headcount increase to handle 32% folio growth to 23.45 crore industry-wide. Depreciation rose with tech capex, but zero debt kept interest costs nil.
Comparatively, CAMS’s 16.3% operating margin tops peers’ averages, yet trails FY25 peaks. Management attributes softness to one-off regulatory compliance spends, promising H2 recovery via cost optimizations. With ₹477 crore FY25 cash flows, CAMS maintains flexibility for buybacks or acquisitions, positioning profitability for a rebound as AUM hits ₹74.4 lakh crore by June 2025.
EPS and Margins: Investor Metrics in Focus for CAMS Q2 FY26
Earnings per share (EPS) at ₹23 for Q2 FY26 offers a snapshot of per-share value creation. This marks a 4.55% QoQ improvement from ₹22 but a 8% YoY drop from ₹25, aligning with PAT trends. Diluted EPS remains steady, buoyed by 49.9 million shares outstanding post the recent split.
Margin profiles reveal operational health. Gross margins hovered at 65%, down slightly from 67% YoY due to volume-based pricing pressures in RTA fees. EBITDA margins at 44.49% signal pricing power, as CAMS negotiates with AMCs amid 20% SIP CAGR. Net margins, however, dipped to 30.53%, pressured by 9% expense growth outstripping 3.2% revenue.
In context, CAMS’s metrics outshine the sector’s 25% average EBITDA margin, per CRISIL. Investors tracking CAMS results today should watch Q3 for margin expansion, as hybrid funds (up 20.74% AUM) and passive strategies (17% of AUM) drive fee stability. Projections peg FY26 EPS at ₹95-100, implying 15% growth if expenses moderate.
Competitive Landscape: CAMS vs. HDFC AMC and KFin Technologies in Q2 FY26
CAMS operates in a duopolistic RTA market, holding 68% share against KFin Technologies’ 32%. CAMS Q2 results FY26 stack favorably against peers. KFin reported ₹309.2 crore revenue (up 10.3% YoY) and ₹93.3 crore PAT (up 4.5%), but its smaller scale limits clout with top AMCs. CAMS’s revenue edge stems from servicing 10 of 15 largest funds, versus KFin’s broader but smaller-client base of 25 AMCs.
HDFC AMC, a tangential peer in asset management, posted Q2 revenue of ₹1,018 crore (up 12% YoY) and PAT of ₹1,057 crore, but its model differs—focusing on fee income sans RTA ops. CAMS’s 3.2% revenue growth lags HDFC’s but excels in scalability, with 69% sales share vs. HDFC’s 10% AUM slice.
Valuation-wise, CAMS trades at 42x P/E, premium to KFin’s 22x and HDFC’s 37x, justified by 15% RTA CAGR forecasts. New mandates like ASK and Alphagrep bolster CAMS’s moat, while KFin’s international push (45% revenue from overseas) adds diversity. Overall, CAMS leads in domestic dominance, but peers’ agility poses long-term threats.
| Metric | CAMS Q2 FY26 | KFin Tech Q2 FY26 | HDFC AMC Q2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 376.74 (3.2% YoY) | 309.2 (10.3% YoY) | 1,018 (12% YoY) |
| PAT (₹ Cr) | 114.94 (6.15% YoY decline) | 93.3 (4.5% YoY) | 1,057 (15% YoY) |
| EBITDA Margin (%) | 44.49 | 38.2 | 85.2 |
| Market Share (MF RTA/AUM) | 68% | 32% | N/A (AMC) |
| P/E Ratio | 42x | 22x | 37x |
This table highlights CAMS’s revenue scale and margin strength, positioning it as the RTA bellwether.
Industry Context: Mutual Fund AUM Boom Fuels CAMS’s Growth Trajectory
CAMS’s performance ties inextricably to the mutual fund industry’s tailwinds. FY25 saw AUM leap 23.11% to ₹65.74 lakh crore, with equity inflows at a record ₹4.17 lakh crore—64% from broad-based funds. Folios surged 32% to 23.45 crore, driven by 33.4% growth in equity schemes. Women investors now comprise 25.91% of unique accounts, up from 24.2%, signaling inclusivity.
SIP AUM hit ₹13.54 trillion by November 2024, with 8.11 crore active accounts. Passive funds, at 17% of AUM, grew via low-cost ETFs, while debt schemes rose 20.5% on 6.8-7% yields. B15 cities’ AUM share climbed to 35% from 25% in 2020, democratizing access.
Regulatory boosts, like SEBI’s eased KYC norms, amplify this. CAMS, with its tech platform, captures 69% of equity sales, poised for 9.15% CAGR in online channels. As AUM eyes ₹1.17 trillion by 2030, CAMS’s 85% MF reliance positions it for 15-20% annual revenue growth.
Future Outlook: Strategic Initiatives and Growth Drivers for CAMS FY26
Looking beyond CAMS Q2 FY26 results, the company charts an ambitious path. Management guidance targets 15%+ revenue growth for FY26, anchored in six new AMC go-lives (including Angel One and JioBlackRock) and three more slated. CAMSPay aims for 30% expansion via RBI-approved aggregator status, while Think360 targets U.S. decacorns.
Challenges loom: SEBI’s fee proposals could squeeze RTA commissions, and expense inflation demands vigilance. Yet, zero debt and ₹477 crore cash flows provide buffers. Analysts forecast FY26 revenue at ₹1,500 crore and PAT at ₹450 crore, implying 12% EPS growth.
Stock targets range ₹4,294-₹5,058, with “strong buy” consensus. CAMS’s pivot to AI analytics and hybrid products aligns with industry shifts, ensuring resilience. For investors, CAMS share news suggests a hold for dividends and buy on dips for growth.
Investment Implications: Why CAMS Remains a Top Pick in Financial Services
In wrapping up this deep dive into CAMS results today and CAMS dividend 2025, the quarter’s mixed signals—record revenue versus profit softness—underscore a company in transition. CAMS’s 68% market dominance, dividend discipline, and alignment with a ₹72 lakh crore industry make it indispensable. Despite 7% post-results volatility, fundamentals scream value at current levels.
Retail and institutional investors alike should weigh the 1.82% yield against 15% growth potential. As India’s MF penetration rises from 19.9% GDP to global norms, CAMS stands ready to ride the wave. Track upcoming earnings calls for H1 updates, and consider accumulating on weakness. In the end, CAMS isn’t just processing transactions—it’s architecting India’s wealth creation story.
