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Lower revenue growth leads to a miss on PAT

* CAMS’ AAUM grew 21% YoY and 7% QoQ to INR48.7t in 1QFY26 with a market share of ~68%. Equity mix stood at 54.8% vs 53.3% in 1QFY25 and 54.4% in 4QFY25. Equity AUM rose 24% YoY to INR26.7t.

* The transaction volume grew 28% YoY and 3% QoQ to 244.3m in 1QFY26.

* CAMS reported operating revenue of INR3.5b in 1QFY26 (6% miss), reflecting 7% YoY growth driven by 9% YoY growth in MF asset-based revenue of INR2.6b.

* The non-MF segment contributed 13% of the overall revenue vs 13.3% in 1QFY25 and 13.7% in 4QFY25.

* Total operating expenses grew 10% YoY to INR2b (in-line). Employee expenses/other expenses grew 8%/13% YoY to ~INR1.2b/INR774m.

* EBITDA came in at INR1.5b (+3% YoY), reflecting an EBITDA margin of 43.6% (vs. 45.2% in 1QFY25 and our est. of 45.5%).

* Other income at INR131m grew 12% YoY.

* PAT was up 1% YoY to INR1.1b (10% miss) in 1QFY26, mainly due to lower revenue growth.

Valuation and view

* Structural tailwinds in the MF industry are expected to drive absolute growth in MF revenue. With favorable macro triggers and the right investments, the non-MF share of revenues for CAMS is expected to increase in the next three to five years.

* We will revise our estimates after the conference call scheduled for 31st Jul’25.

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