For Q4 FY26, KFin Technologies reported a net profit of Rs 81 crore, down 4.6% from Rs 85 crore in the same period last year, even as revenue from operations rose 23% year-on-year to Rs 347.33 crore from Rs 283 crore.
In its report titled Mar’26 Quarter First Cut, Jefferies noted that KFin Technologies’ EBITDA for the March quarter came in 5% above its estimates, driven by stronger-than-expected performance in the domestic mutual fund (MF) segment. The MF registrar and transfer agent (RTA) yield stood at 3.25 basis points, exceeding the brokerage’s estimate of 3.15 bps. However, it declined sequentially due to a higher share of ETF assets under management.
The company’s international business arm, Ascent, recorded robust growth, with revenue rising 27% year-on-year. During the quarter, it added 127 new funds, including six with assets under management exceeding $100 million. Adjusted profit after tax (excluding one-offs) was 11% higher than Jefferies’ estimates, supported by higher other income.
Jefferies has valued KFin Technologies at 39 times its estimated March 2028 earnings, maintaining its positive outlook. The brokerage highlighted that faster conversion of order wins into revenue in international markets and stable yields in the domestic RTA business could drive further re-rating of the stock.
However, it flagged risks such as tighter regulatory caps on mutual funds, slower-than-expected growth in new segments, increased capital market volatility, and rising employee costs due to higher IT hiring. It also cautioned about a marginal risk of overpaying for acquisitions, though the company’s track record suggests disciplined valuation practices.
On the technical front, Trendlyne data shows the 14-day Relative Strength Index (RSI) for KFin Technologies at 56.7. An RSI below 30 is generally considered oversold, while a reading above 70 indicates overbought conditions.Also read: Waaree Energies shares crash 9% despite 75% increase in Q4 net profit, upbeat FY27 guidance
In terms of moving averages, the stock is exhibiting a bearish trend, trading below five out of its eight simple moving averages (SMAs).
Looking at the shareholding pattern for the March 2026 quarter, foreign institutional investors (FIIs) marginally increased their stake to 26.26% from 26.16%, while mutual funds raised their holdings to 13.11% from 12.68%. Promoter holding, however, saw a slight dip to 22.86% from 22.87% in the same period.
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