CA Inter FM and SM 2026-27: Syllabus, Pattern & Preparation

The CA Inter FM and SM 2026-27 syllabus covers Financial Management and Strategic Management. Paper 6 carries 100 marks and is divided into two sections. Financial Management carries 50 marks, while Strategic Management carries 50 marks.

Financial Management focuses on financing, investment, dividend and working capital decisions. Strategic Management covers strategic analysis, strategic choices, implementation, and evaluation. Understanding the syllabus and section-wise weightage can help you plan your preparation effectively.

CA Inter FM and SM 2026-27 Syllabus

The syllabus is divided into Section A: Financial Management and Section B: Strategic Management. Each section carries 50 marks.

Section A: Financial Management

The CA Inter Financial Management section carries 50 marks. It covers four major areas.

1. Financial Management and Financial Analysis

Weightage: 10%-15%

This section introduces the fundamentals of financial management and financial analysis. It includes:

• Introduction to Financial Management

• Objectives and scope of financial management

• Profit maximisation, wealth maximisation and value creation

• Role of the Financial Manager and Financial Controller

• Financial management environment

• Functions of finance executives

• Financial distress and insolvency

• Financial analysis through ratios

• Sources of financial data

• Calculation and interpretation of ratios

• Limitations of ratio analysis

2. Financing Decisions and Cost of Capital

Weightage: 45%-50%

This section covers major financing decisions and forms a significant part of the Financial Management syllabus. Topics include:

• Sources of finance

• Long-term and short-term sources of finance

• Contemporary sources of funding

• Internal and international sources of finance

• Lease financing, sale and leaseback, convertible debt, venture capital and grants

• Cost of capital

• Measurement of individual components of capital

• Weighted Average Cost of Capital (WACC)

• Marginal cost of capital

• Capital structure decisions

• Capital structure theories

• EBIT-EPS analysis

• Break-even EBIT analysis

• Under and over-capitalisation

• Operating, financial and combined leverage

3. Capital Investment and Dividend Decisions

Weightage: 20%-25%

This section focuses on investment appraisal and dividend decisions. It includes:

• Capital investment decisions

• Payback period

• Discounted payback period

• Accounting Rate of Return (ARR)

• Net Present Value (NPV)

• Capital rationing

• Equivalent Annual Costs

• Internal Rate of Return (IRR)

• Modified Internal Rate of Return (MIRR)

• Profitability Index

• Basics of dividends

• Cash dividend

• Bonus shares and stock splits

• Share buyback

• Determinants of dividend

• Dividend policy theories

4. Management of Working Capital

Weightage: 15%-20%

This section covers the management of short-term financial requirements. Topics include:

• Liquidity and profitability

• Working capital financing decisions

• Working capital cycle

• Operating and cash conversion cycles

• Assessment of working capital requirements

• Management of accounts receivable

• Factoring and forfaiting

• Credit management

• Management of accounts payable

• Management of cash

• Treasury management

• Banking norms of working capital finance

Section B Strategic Management

The CA Inter Strategic Management section carries 50 marks. It consists of five sections, with each section carrying a weightage of 15%-25%.

1. Introduction to Strategic Management

Weightage: 15%-25%

This section covers the basic concepts of strategic management, including:

• Meaning and nature of strategic management

• Importance and limitations of strategic management

• Strategic intent

• Vision, mission, goals and values

• Strategic levels in organisations

2. Strategic Analysis: External Environment

Weightage: 15%-25%

This section focuses on analysing the external business environment. It includes:

• International and macro environment

• PESTLE Analysis

• Industry analysis

• Value Chain

• Product Life Cycle

• Porter’s Five Forces

• Customers and markets

• Competition in the industry

3. Strategic Analysis: Internal Environment

Weightage: 15%-25%

This section covers internal analysis and competitive advantage. Topics include:

• Key stakeholders

• Mendelow’s Model

• Strategic drivers

• Resources and capabilities

• SWOT Analysis

• Competitive advantage

• Michael Porter’s Generic Strategies

4. Strategic Choices

Weightage: 15%-25%

This section deals with different strategic options and frameworks. It includes:

• Concentric and conglomerate strategies

• Market development

• Product development

• Innovation

• Horizontal and vertical integration

• Turnaround

• Divestiture

• Liquidation

• Development of strategic options

• Ansoff’s Matrix

• ADL Matrix

• BCG Matrix

• GE Matrix

5. Strategy Implementation and Evaluation

Weightage: 15%-25%

This section focuses on implementing and evaluating business strategies. It includes:

• Formulation versus implementation

• Linkages and implementation issues

• Strategic change through digital transformation

• Organisation structure and culture

• Strategic leadership

• Strategic control

• Strategic performance measures

The syllabus permits a deviation of a maximum of ±5% in the specified section-wise weightage.

CA Inter FM and SM 2026-27 Exam Pattern

Paper 6 carries 100 marks, divided equally between Financial Management and Strategic Management.

The CA Inter FM SM syllabus therefore requires preparation for both numerical and conceptual areas. Financial Management includes calculations and decision-making topics, while Strategic Management focuses on concepts, frameworks and their application in business situations.

CA Inter FM and SM 2026-27 Preparation Strategy

For CA Inter FM SM preparation, divide your time between numerical practice in Financial Management and regular revision of Strategic Management concepts.

1. Focus on High-Weightage FM Areas

Give adequate practice time to Financing Decisions and Cost of Capital, which carries the highest specified weightage of 45%-50% within Financial Management. Capital Investment and Dividend Decisions should also receive regular numerical practice.

2. Practise FM Questions Regularly

Do not rely only on reading formulas and concepts. Solve questions on ratios, cost of capital, capital structure, investment appraisal, dividend decisions and working capital.

3. Build Conceptual Clarity in SM

Study Strategic Management concepts with their meaning, purpose and application. Understand frameworks such as PESTLE, Porter’s Five Forces, SWOT, Ansoff’s Matrix, BCG Matrix and GE Matrix instead of memorising their names alone.

4. Make Short Revision Notes

Prepare concise notes for formulas, important concepts, models and strategic frameworks. These notes can be useful during the final stages of revision.

5. Revise Both Sections Regularly

Avoid completing Financial Management first and leaving Strategic Management for the end, or vice versa. Keep both sections active throughout your preparation.

6. Practise Application-Based Questions

The objectives of both sections require you to apply concepts in decision-making or business situations. Include application-based questions while revising instead of focusing only on definitions.

Why CA Inter FM SM Requires Balanced Preparation

The CA Inter FM SM paper combines numerical and conceptual areas. Financial Management requires regular problem-solving practice, while Strategic Management requires understanding and recalling concepts and frameworks.

Since both sections carry 50 marks, your preparation should give adequate attention to each. Regular revision and question practice can help you become familiar with the topics and their application.

Preparation Resources:

• CA Intermediate Notes

• CA Inter Online Batches