KFin Technologies Limited (KFIN Tech), a leading technology-driven financial services platform, has reaffirmed its EBITDA margin guidance and provided insights into its future growth prospects. The company has shared key updates on its performance and strategic outlook.

EBITDA Margin Guidance

KFIN Tech has maintained its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin guidance at 40-45%. This consistent guidance suggests the company's confidence in its operational efficiency and profitability.

Margin Alignment with Ascent

KFIN Tech anticipates that its margins will align with those of Ascent within a 3-5 year timeframe. This projection indicates the company's strategic focus on improving its financial performance to match industry benchmarks.

SIP Book and AUM

The company reported that its Systematic Investment Plan (SIP) book represents approximately 40% of its total Assets Under Management (AUM). This substantial portion of SIP-based AUM suggests a stable and recurring revenue stream for KFIN Tech.

Ascent Acquisition Impact

KFIN Tech expects the Ascent acquisition to have a neutral impact on its financials in FY26. However, the company projects that Earnings Per Share (EPS) growth will begin the following year, indicating potential long-term benefits from the acquisition.

Market Share Growth

Looking ahead, KFIN Tech has expressed optimism about its market position. The company projects long-term market share growth, reflecting its confidence in its business model and competitive strategy.

Financial Performance

KFIN Tech reported the following consolidated financial results:

The company's financial results demonstrate strong year-over-year growth across key metrics, with revenue from operations increasing by 12.8% and net profit after tax growing by 20.8% compared to the previous quarter.

Upcoming Investor Meetings

KFIN Tech has scheduled analyst and institutional investor meetings for October 31, including:

1. A virtual one-to-one meeting with Variis Partners
2. An in-person one-to-one meeting with TenCore Partners in Mumbai

These meetings suggest the company's commitment to maintaining transparent communication with its investors and analysts.

KFIN Tech's recent performance and forward-looking statements indicate a focus on sustainable growth and market expansion. The company's ability to maintain its EBITDA margin guidance while projecting alignment with Ascent's margins in the medium term reflects a balanced approach to growth and profitability. Investors and market observers will likely keep a close watch on KFIN Tech's progress in achieving these targets and its impact on the company's market position in the financial services technology sector.

KFin Technologies Limited , a leading technology-driven financial services platform, has announced strong financial results for the second quarter of fiscal year 2026, demonstrating resilience in the face of market volatility and global economic uncertainty.

Financial Highlights

For Q2 FY26, KFin Technologies reported:

• Revenue from operations of ₹3,092.30 million, up 10.3% year-over-year
• EBITDA of ₹1,357.10 million, a 7.2% increase year-over-year, with an EBITDA margin of 43.9%
• Profit After Tax (PAT) of ₹933.10 million, growing 4.5% year-over-year, with a PAT margin of 30.2%
• Diluted Earnings Per Share (EPS) of ₹5.38, up 4.1% year-over-year

The company's performance for the first half of FY26 was equally impressive:

• Revenue from operations reached ₹5,832.90 million, a 12.6% increase year-over-year
• EBITDA stood at ₹2,495.70 million, up 10.3% year-over-year, maintaining a strong EBITDA margin of 42.8%
• PAT grew to ₹1,705.70 million, an 8.4% increase year-over-year, with a PAT margin of 29.2%
• Diluted EPS for H1 FY26 was ₹9.83, up 7.9% year-over-year

Operational Highlights

KFin Technologies continued to strengthen its market position across various segments:

• In the domestic mutual fund space, the company's overall Assets Under Management (AAUM) grew by 16.8% year-over-year, outpacing the industry growth of 16.5%. The company maintained a market share of 32.5% in overall AAUM.
• The company's equity AAUM grew by 14.1% year-over-year, with a market share of 33.0%.
• In the issuer solutions segment, KFin Technologies added 597 new corporate clients during the quarter, bringing its total client base to 9,464. The company's market share in NSE 500 companies stood at 49.6% based on market capitalization.
• The international client base expanded to 93, with new deals secured in Malaysia and GIFT City operations.
• In the alternatives and wealth management segment, the number of funds serviced grew to 644, with a market share of 38.6%. The AAUM in this segment grew by 37.4% year-over-year to ₹1.80 trillion.
• The National Pension Scheme (NPS) subscriber base grew to 1.79 million, up 30.2% year-over-year, significantly outpacing the industry growth of 12.5%.

Strategic Developments

A key milestone for KFin Technologies this quarter was the successful acquisition of a 51% controlling stake in Ascent Fund Services (Singapore) Pte. Ltd. This strategic move positions KFin Technologies as one of the fastest-growing global fund administrators and the only one from India. The combined entity is set to provide technology-first solutions and delivery excellence to over 1,400 public and private market funds across 18 countries, managing over US$ 340 billion in assets under administration.

Management Commentary

Sreekanth Nadella, Managing Director and CEO of KFin Technologies Limited, commented on the results: "KFintech continues to deliver strong operating performance during the quarter, despite market volatility amidst global uncertainty, underscoring the strength of our diversified business model and operational discipline. Duly backed by positive net inflows, new client wins across all segments, and effective cost rationalization, KFintech continues to augment operating performance."

Nadella also highlighted the company's commitment to empowering the financial distribution fraternity, mentioning the launch of 'IGNITE', a flagship distributor engagement program offering digital platforms, personalized support, and scalable solutions.

KFin Technologies' robust performance in Q2 FY26 demonstrates its ability to navigate challenging market conditions while continuing to innovate and expand its service offerings. The company's strategic initiatives, including the Ascent Fund Services acquisition, position it well for sustained growth in the evolving financial services landscape.

About KFin Technologies Limited

KFin Technologies Limited is a leading technology-driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem. The company serves asset managers and corporate issuers across asset classes in India and provides investor solutions globally.