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Cams Services
Our verdict on Cams Services isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
CAMS has taken six new AMCs live within the calendar year 2025, exceeding the previous guidance of five. (3 exceeded, 2 met across 5 tracked commitments)
“Again, the beginning of the year, when asked for a projection, we said that we will try to keep the cost increases on a year-on-year basis to around 10% to 11%. Happy to say, again, we are on track for that.”
Management successfully integrated the NSE Dotex KRA business as planned to cement their leadership position. (2 met across 2 tracked commitments)
“So, we are expecting sometime in the month of December. We would have completed the entire operations transfer, including client contracts, whatever innovation has to be done.”
See the full cited Management analysis of Cams Services
How durable is the business?
CAMS maintained its dominant market leadership with a 68% share of overall AuM and significantly increased its share in new SIP registrations. (1 expanding across 1 engine)
“The MF revenue grew on the back of the asset growth as well as the stable yields to 3.3% quarter-on-quarter. On the non-MF side, the revenue contribution has expanded to 14.5%.”
The core MF segment continues to expand, driven by a 24% YoY growth in AuM and a significant 49% jump in transaction volumes for the full year. (3 expanding)
“Revenue from operations ... FY25 1,33,390.02 ... FY24 1,05,448.22”
See the full cited Business Model analysis of Cams Services
Where does growth come from?
CAMS is seeing a record-breaking trend in onboarding new Asset Management Companies (AMCs), with 2 going live in Q4 and 5 more expected in the next 6 months. (2 accelerating across 2 signals)
“In Dec’2025 CAMS’s share in overall AuM has increased to 67.5% (from 67.4% in Dec'24)”
The technology re-architecture project is entering an accelerated spending phase in FY26, with benefits expected to materialize by the end of the year. (2 accelerating across 2 signals, 2 leading indicators)
“3 PILLARS OF RE-ARCHITECHTURE: EFFICIENCY, SCALE, AI@ITS CORE”
See the full cited Future Growth analysis of Cams Services
What could break the thesis?
Yield compression is intensifying slightly in the short term (0.04 bps depletion this quarter) due to telescopic pricing, though management expects stability over the next 18 months. (1 intensifying, 4 easing, 2 high-severity)
“FY 26 yield compression ( 5 yr CAGR) is on the higher side due to a One-time price reset, however the general yield compression is between 3 - 3.8 % per year.”
The risk is easing as non-MF revenue share increased to 13.7% in Q4 and is projected to grow at 20-25%. Significant wins in Insurance (LIC) and Payments (Education sector) are successfully diversifying the revenue base. (5 easing, 1 high-severity)
“Steady Progress: Non-MF Revenue Share Climbs to 14.5% from 9.8% in Five Years”
See the full cited Risk analysis of Cams Services
Read the full thesis on Cams Services
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