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Better-than-expected operating revenue led to beat on PAT

* AAUM grew 23% YoY but declined 2% QoQ to INR45.6t in 4QFY25. Equity AUM rose 28% YoY to INR24.8t.

* CAMS reported operating revenue of INR3.6b in 4QFY25 (7% beat), reflecting 15% YoY growth. For FY25, operating revenue grew 25% YoY to ~INR14.2b.

* Total operating expenses grew 18% YoY to INR1.97b (in-line). Employee expenses/other expenses grew 12%/27% YoY to ~INR1.2b/INR790m.

* EBITDA came in at INR1.6b (17% beat), which grew 11% YoY, reflecting EBITDA margin of 44.7% (vs 46.2% in 4QFY24 and our est. of 40.7%). For FY25, EBITDA grew 29% YoY to INR6.5b.

* Other income at INR134m (19% lower than est.) grew 17% YoY.

* PAT grew 10% YoY to INR1.1b (15% beat) in 4QFY25, driven by strong topline growth. For FY25, PAT rose 32% YoY to INR4.6b.

* The Board approved final dividend of INR19/equity share.

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 update our estimates after the conference call scheduled for 6th May’25.

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