Chams makes N7.7 billion from cards, biometrics services as H1 profit rises

Chams Holding Company Plc generated N7.7 billion from the supply of cards and biometrics-related services in the first half of 2026, as the company continued to expand its presence in Nigeria’s payments and identity infrastructure businesses.

The two businesses accounted for the bulk of the company’s revenue during the period, even as total revenue declined 0.9% to N9.79 billion from N9.88 billion in H1 2025.

Despite the slight decline in revenue, Chams’ gross profit rose 30.9% to N2.57 billion, helped by lower cost of sales.

What the numbers are saying

Chams’ N9.79 billion H1 revenue was driven primarily by its card and biometrics businesses.

• Data Card Products generated N4.32 billion, representing 44.1% of group revenue.
• Biometrics and Related Services contributed N3.46 billion, accounting for 35.3%.
• Cyber Security, Infrastructure & Others contributed N1.85 billion, or 18.9%
• The remaining businesses, including Access Control, Payment Gateway Fees, E-Voting, Virtual Airtime and the I’m Alive, Kegow, Pension Central and BVN businesses, contributed relatively small amounts.

The two largest businesses therefore generated about 79% of total group revenue.

Cost of sales fell 8.8% to N7.22 billion, compared with N7.92 billion in H1 2025. This lifted gross profit 30.9% to N2.57 billion, while gross margin expanded from 19.8% to 26.2%.

That improvement, however, did not translate into stronger operating profit. Administrative expenses increased 70.6% to N2.05 billion, pushing operating profit down 44.2% to N529 million.

Chams ultimately recorded N473 million in profit after tax, up 13% from N419 million in H1 2025.

Card business remains a key revenue engine

The card business is becoming an increasingly important part of Chams’ operations, driven by CardCentre, a subsidiary focused on smartcard personalisation, identity management, digital security and payment solutions.

CardCentre personalised more than 2.6 million cards in Q1 2026 alone, marking a record quarter for the business.

A new card manufacturing plant also commenced operations in May 2026, with the investment reflected in net property, plant and equipment, which increased from N2.86 billion to N4.91 billion, a 71.8% rise.

The investment follows a sharp increase in card sales, which surged 573% in 2025 to N5.9 billion.

The H1 2026 Data Card Products revenue of N4.32 billion suggests that the business has carried that momentum into the 2026 financial year.

Biometrics remains a major contributor

Biometrics and Related Services generated N3.46 billion in H1 2026, making it Chams’ second-largest revenue stream.

The business includes services around counting, phone, computer and sorting, and sits alongside Chams’ broader identity-management activities.

Chams’ biometrics operation also remains closely associated with Nigeria’s financial identity infrastructure. Its Bank Verification Number project marked its 10th anniversary in 2025.

Finance income props up profit

One of the more significant features of Chams’ H1 results is the sharp increase in finance income.

Finance income jumped from N18 million in H1 2025 to N539 million in H1 2026, with N536 million coming from investment income at Chams HoldCo level.

That income helped offset the decline in operating profit. Chams’ operating profit fell 44.2% to N529 million, but the increase in finance income helped the company record N473 million in profit after tax, up 13% from N419 million in H1 2025.

This means the improvement in Chams’ bottom-line profit was not driven entirely by its core operations.

While gross profit improved significantly, higher administrative expenses put pressure on operating earnings, making the increase in finance income an important contributor to the final profit figure.

Get up to speed

Chams’ H1 2026 performance comes against the backdrop of efforts by the company to strengthen its capital base and expand its digital infrastructure and identity-related businesses.

• In November 2025, Chams listed 1.96 billion additional ordinary shares on the Nigerian Exchange following a private placement in which about 2 billion shares were issued at N1.87 each.
• The listing increased its total issued and fully paid-up shares from 4.70 billion to 6.65 billion and boosted its market capitalisation to about N21 billion.
• Chams also attracted significant trading activity on the NGX in January 2026.

On January 26, the company was the most actively traded stock by volume, with 41.5 million shares exchanged, ahead of Access Holdings at 34.3 million and GTCO at 31.5 million.

What you should know

Earlier this year, Nairametrics reported that Chams had ushered in a new phase of leadership with the appointment of former Wema Bank CEO, Segun Oloketuyi, as Chairman of its Board of Directors.

Oloketuyi takes over following the retirement of Sir Demola Aladekomo, Chams’ founder, who stepped down after four decades at the helm of the company.

The appointment was approved by the Board in line with the company’s corporate governance framework and applicable regulatory requirements and was disclosed in a notice to the Nigerian Exchange and the investing public.