Key Financial Performance

Q2 FY27 Financial Highlights:

  • Total Revenue: ₹650 Cr, up 6.7% YoY and 2.4% QoQ
  • Services Revenue: ₹644 Cr, up 16.2% YoY and 3.0% QoQ
  • EBITDA: ₹173 Cr, up 24.8% YoY and 0.4% QoQ
  • EBITDA Margin: 26.7%, improved by 390 bps YoY but declined 53 bps QoQ
  • PAT: ₹81 Cr, up 10.3% YoY but down 3.3% QoQ
  • Diluted EPS: ₹5.05, up 14.9% YoY but down 1% QoQ

H1 FY27 Financial Highlights:

  • Total Revenue: ₹1,284 Cr, up 3.9% YoY
  • Services Revenue: ₹1,269 Cr, up 12.7% YoY
  • EBITDA: ₹346 Cr, up 16.4% YoY
  • EBITDA Margin: 27.0%, improved by 290 bps YoY
  • PAT: ₹165 Cr, down 1.4% YoY
  • Diluted EPS: ₹10.15, up 1.4% YoY

Operational and Business Updates

Services Business Performance:

  • Fourth consecutive quarter of record services revenue
  • Sequential growth of 3.0% in Q2 following 2.6% in Q1
  • Tech & Payments segment reached 20% of services revenue (well ahead of FY30 goal of 16%)
  • Tech & Payments annualized revenue crossed ₹500 Cr

Cost Pressures and Mitigation:

  • Facing steep wage inflation increases of 6% to 60% across key states
  • Fuel price increases impacting costs
  • Contract repricing underway with most private bank contracts completed
  • Negotiations with public sector banks ongoing through IBA committee

Integration and Order Wins:

  • FSS CashTech integration completed with all customer contracts novated to CMS
  • Final closing steps remaining, expected by January 2027
  • Secured ₹700 Cr in marquee wins in Tech & Payments solutions
  • HAWKAI Branch RMS win with leading PSU bank for central command centre and 8,000+ branches
  • Third large bank implementing ALGO across 12,000 machines

Efficiency Improvements:

  • Network efficiency improved by 10% through ML-based optimization
  • AI agents processing indents at 99% accuracy
  • AI closing over 60% of monitoring alerts across 25,000+ sites

Cash Flow and Capital Allocation:

  • H1 operating cash flow: ₹177 Cr (compared to outflow of ₹117 Cr in H1 FY26)
  • FY27 Capex guidance: ₹100-125 Cr (~4% of revenue)
  • FY26 Capex: ₹351 Cr funded fixed-price ATM contracts and development of HAWKAI and ALGO MVS
  • ₹606 Cr returned to shareholders since listing through dividends and buybacks

Market and Industry Context:

  • Currency in circulation at record ₹43.5 Lakh Cr, up 13.5% YoY and 3x FY15 levels
  • ATM base stable at 209.8K with on-site ATMs growing ~4% annually
  • Off-site ATMs shrank to 73K due to weaker unit economics
  • Industry pivoting to fixed-price contracts
  • Company declined ₹700 Cr transaction-priced contract in FY26

Retail Currency Trends:

  • Same-store cash throughput grew 3.7% YoY in discretionary consumption sectors
  • Leading quick commerce platform showed +131% YoY growth
  • Leading electronics retail chain showed +45% YoY growth

Capital Structure and Shareholding

Shareholding Pattern (30 Sep 2026):

  • Foreign Institutional Investors: 19.79%
  • Mutual Funds: 28.71%
  • Alternative Investment Funds: 6.55%
  • Others (incl. retail): 44.95%

Capital Market Information (30 Sep 2026):

  • Market Cap: ₹3,545.4 Cr
  • Equity Shares Outstanding: 160.1 Mn
  • Market Price: ₹221.5
  • 52-week H/L: ₹393.3 / ₹221.0
  • Average Trading Volume: 680,900 shares

Forward-looking Statements and Outlook

FY27 Outlook:

  • Services Revenue: ₹2,650-2,750 Cr
  • EBITDA Margin: ~27%
  • Capex: ₹100-125 Cr (compared to ₹351 Cr in FY26)

Expected Carrying into FY28:

  • Full year benefit of price revisions agreed in FY27
  • FY26 and FY27 order book running at full scale
  • Depreciation easing as share of revenue with capex at long-term levels
  • Tech & Payments growing from larger base with active bank RFP pipeline

Historical Financial Context

FY23-FY26 Consolidated Financials:

  • FY26 Operating Income: ₹2,487 Cr, EBITDA: ₹600 Cr (24.1% margin), PAT: ₹303 Cr (12.2% margin)
  • FY25 Operating Income: ₹2,425 Cr, EBITDA: ₹633 Cr (26.1% margin), PAT: ₹372 Cr (15.4% margin)
  • Company has achieved 11x revenue and 13x PAT growth since FY09