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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.”
The non-mutual fund business grew by over 24% year-on-year in Q3 FY26, surpassing the 20% target. (1 exceeded, 3 met, 1 revised across 5 tracked commitments)
“So, we are on target overall to broadly reach the 20% growth year-on-year that we are projecting from a non-mutual fund perspective.”
Management had guided for a 0.03 to 0.04 bps yield compression for Q2 FY26, and the actual result came in at exactly 0.04 bps, meeting the guidance despite a static equity mix. (1 met, 1 revised across 2 tracked commitments)
“And you know that from, if you see the math on a 5-year average basis, telescopic depletion has been around 3% to 3.5% per year. So, we should expect closer or lesser to that going forward in terms of yield depletion. ... But the next 3 quarters would see a very, very moderate decrease, if at all, in terms of yield depletion.”
Non-MF revenue growth for Q1 FY'26 was only 4.4% Y-o-Y, significantly below the 'high double-digit' (24-25%) target previously communicated. (1 missed, 1 exceeded across 2 tracked commitments)
“And again, we are very hopeful and confident that we will have a repeat here in FY '26 in delivering at least high double-digit, 24%, 25% growth in non-MF to continue this year, too.”
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”
The KYC business (CAMSKRA) grew revenue by 31% in FY25, maintaining its position as the second-largest KRA in India with a 20% market share. (5 expanding)
“CAMS KRA market share + diversification beyond MF... #2 in India with 2.15 Cr+ unique users”
The company is implementing a major cloud and AI-based platform migration to drive productivity, maintaining flat headcount despite a 5x increase in assets and transactions over the last decade. (1 expanding)
“CAMS Platform Now Powers 24 Large and Fast-growing AMCs... 4 out of Top 5 AMCs & 6 of the Top 10 AMCs”
Non-MF revenue share increased to 13.7% in Q4, with CAMSPay growing 85% YoY. Management is targeting 20-25% growth for this segment in FY26, with EBITDA margins expected to improve toward 20%. (5 expanding across 1 engine)
“On the non-MF side, the revenue contribution has expanded to 14.5%... the non-mutual fund revenue, it was almost 5% quarter-on-quarter and 24-plus percent, almost 25% year-on-year... they are upwards of 13 percentage EBITDA as a bucket.”
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”
The insurance repository segment is seeing a massive surge in policy counts, with market share improving to over 40% and a major integration with LIC expected to double the pace of growth. (5 accelerating across 5 signals)
“Target Rs.400 Cr revenue by FY’29 from non-MF Businesses... TARGET 20%+ CAGR OVER THE NEXT 3 YEARS”
CAMSPay is experiencing accelerating growth, with revenue up 85% YoY in Q4 and transaction volumes reaching a historical high in March 2025. (5 accelerating across 5 signals, 1 leading indicator)
“Rs.5 Lakh Cr. AUM Opportunity in 3-5 years... SIF: New Asset Category Unlocking Fresh Growth Pathways”
The KRA business has staged a sharp recovery, growing 45% sequentially after a depressed Q1 caused by regulatory clampdowns on F&O account openings. (1 accelerating across 1 signal)
“This process got concluded. Now the business is with CAMS live with us, a great integration, adds more than 1 million fans to our overall kitty and uniquely positions us as the second largest KRA.”
See the full cited Future Growth analysis of Cams Services
What could break the thesis?
The risk is being actively managed and potentially resolved through the launch of a specific compliance product. (1 stable)
“Consent Pro: The 3D Trust Lifecycle. DPDP Act Compliance: The Key Value”
The risk is easing as management noted that the 'sustained pressure on the indices' seen from September to March started easing in April and May. While KRA had a 'tough quarter' due to lower new folio creations, the overall market sentiment is recovering. (1 easing)
“CAMS KRA, you know that the account opening momentum in capital markets has been slow... the depository and broking account momentum has been slower.”
Yield compression remains a structural reality, with a projected 7% drop in yields for FY26 compared to FY25. However, the trajectory is stable as this falls within the historical guided range of 6% to 7% annual depletion. (4 stable, 1 easing)
“we expect that the yearly yields when compared to the last year, the current year, the yearly yields will drop by around 7 percentage to 8 percentage, most likely around 7 percentage.”
The risk remains stable but high; however, strong equity inflows (Rs. 72,634 Cr in Q4) and a 29% growth in Equity AuM have offset market volatility concerns for now. (3 stable)
“Equity assets held the Rs.25 Lakh Cr. mark, with sustained inflows despite the volatility in the market”
The risk is stable as the company maintains a 0.002% complaint-to-transaction ratio and reports 'zero disruption' during scaling. (1 stable)
“Scaling at Speed: Operational Excellence with Zero Disruption”
See the full cited Risk analysis of Cams Services
Read the full thesis on Cams Services
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