Smallcap stock jumps 7% after securing contract worth ₹1,000 Cr from SBI

SYNOPSIS: CMS Info Systems secured a landmark Rs. 1,000-crore, 10-year SBI contract to manage 5,000 ATMs, reinforcing its leadership in integrated cash outsourcing and deepening its long-standing partnership with India’s largest bank.

During Wednesday’s trading session, shares of India’s leading business services company offering logistics, technology solutions & services surged nearly 7 percent on BSE, after the company announced securing a 10-year contract worth Rs. 1,000 crores from State Bank of India (SBI).

At 11:46 a.m., shares of CMS Info Systems Limited were trading in the green at Rs. 352.7 on BSE, up by more than 3 percent, compared to its previous closing price of Rs. 341.7, with a market cap of Rs. 5,801 crores. The stock has delivered negative returns of over 28 percent in one year, but has gained by nearly 2 percent in the last one month.

What’s the News

As per the disclosures with the latest stock exchanges, CMS Info Systems Limited has secured a landmark Rs. 1,000 crore contract from State Bank of India (SBI), spanning 10 years. This is the first large, direct cash-outsourcing mandate awarded by a public-sector bank, covering around 5,000 SBI-owned ATMs nationwide.

Under the agreement, CMS will provide managed services aimed at improving cash efficiency and ensuring the delivery of higher ATM uptime to benefit millions of SBI customers. The contract is scheduled to go live in January 2026.

This win highlights banks’ growing preference for integrated outsourcing solutions and further deepens CMS’s long-standing partnership with SBI. It builds on CMS’s track record of executing large, complex assignments for the bank, including a multi-vendor software platform (ALGO MVS™), vision-AI solution HAWKAI™, and comprehensive ATM managed services.

Financials & Management Guidance

CMS Info Systems Limited is engaged in the business of providing cash management services and managed services, including ATM cash management services, retail cash management services, cash-in-transit services for banks, banking automation product deployment and AMC, brown label ATMs, software solutions including multi-vendor software and automation solutions, remote monitoring technology solutions and card trading and personalisation services.

CMS Info reported a marginal decline in revenue from operations, experiencing a year-on-year decrease of around 3 percent, from Rs. 625 crores in Q2 FY25 to Rs. 609 crores in Q2 FY26. Likewise, its net profit decreased during the same period from Rs. 91 crores to Rs. 73 crores, representing a fall of nearly 20 percent YoY.

For H2 FY26, the company expects its ATM Management Solutions business to return to a growth path and lay the foundation for double-digit growth in FY27. The closure of SBI’s cash outsourcing RFP after detailed negotiations and final approvals is expected to unlock an incremental revenue opportunity of about Rs. 500 crore over the next 7-10 years. 

At the same time, the HAWKAI vision-AI solution is scaling up steadily, with deployments targeted to reach 50,000 sites by FY26 and a longer-term ambition of scaling to 80,000 sites by FY30. Overall, services revenue is targeted to grow around 9 percent in H2 over H1, helping restore growth momentum ahead of FY27.

On the margin front, recovery is expected to be driven by higher ATM deployments, which are likely to reach around 75,000 units by March 2026, along with a planned 5 percent increase in ATM pricing. In addition, continued investments in automation and technology are expected to optimise network costs, including a 10 percent reduction in the number of routes and the transition of about 25 percent of retail points to a gig-based operating model.

Further, in ATM Management Solutions, revenues are estimated at around Rs. 1,575-1,650 crore in FY27, up from about Rs. 1,300 crore in FY25, and are expected to reach Rs. 2,200-2,250 crore by FY30, implying an 11 percent CAGR. 

Retail Solutions and Currency Logistics is projected to grow from roughly Rs. 640 crore in FY25 to about Rs. 725-750 crore in FY27, and further to Rs. 1,050-1,100 crore by FY30, also at an 11 percent CAGR. Technology and Payment Solutions is expected to scale faster, rising from around Rs. 240 crore in FY25 to nearly Rs. 400 crore in FY27 and Rs. 500-600 crore by FY30, translating into a strong 20 percent CAGR.

Overall, total services revenue is estimated to increase from about Rs. 2,180 crore in FY25 to Rs. 2,700-2,800 crore in FY27, and further to Rs. 3,750-3,950 crore by FY30, reflecting an overall CAGR of roughly 12 percent.

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