KFin Technologies (KFINTECH) Q1 26/27 earnings summary

Executive summary

• Revenue from operations grew 30.1% year-over-year to ₹3,565.4 million in Q1FY27, driven by diversification, strong international growth, and new client wins, with Ascent acquisition contributing significantly.

• International and other investor solutions core revenue surged 192.1% year-over-year, with Ascent Fund Services revenue up 32% year-over-year and six new $100M+ fund manager mandates won.

• EBITDA increased 7.1% year-over-year to ₹1,219.8 million, with margins at 34.2% (including Ascent); PAT was ₹752.1 million, with margin at 21.1%.

• Diluted EPS was ₹4.34, down 2.6% year-over-year.

• Non-mutual fund revenue increased to 38% of total, up from 24.5% last year, reflecting reduced dependency on market-driven business.

Financial highlights

• Revenue from operations: ₹3,565.4 million (up 30.1% y-o-y, up 2.7% q-o-q); total income at ₹3,668.92 million.

• EBITDA: ₹1,219.8 million (up 7.1% y-o-y); EBITDA margin at 34.2% (including Ascent), 39.4% (excluding Ascent).

• PAT: ₹752.1 million (down 2.6% y-o-y); PAT margin at 21.1% (including Ascent), 26.6% (excluding Ascent).

• Cash and cash equivalents at ₹6,870.7 million as of June 30, 2026.

• 51% of EBITDA converted to free cash flow.

Outlook and guidance

• Revenue CAGR expected in the 18%-20% range, with EBITDA margins targeted at 40%-45% (including Ascent by year-end).

• PAT growth visibility at 12%-15%, with EBITDA growth closer to 20%.

• Margin expansion expected from Q2 onwards due to cost optimization and Ascent scaling.

• Final dividend of ₹12.00 per equity share for FY26 approved.