KFIN Technologies Ltd. share price target

KFin Technologies’ (KFin) revenue grew 23% YoY—Ascent business added from 3QFY26—but declined 6% QoQ to INR3.5b in 4QFY26 (5% miss led by a miss on MF and issuer solutions business).

We have liked KFIN Technologies (KFIN) for its business growth potential based on its core Indian MF RTA operations, alongside likely traction in international business (buoyed by acquisitions/partnerships), alternatives, and corporate registry.

KFINTECH’s Q3FY26 performance was impacted by the consolidation of Ascent Fund Services. The company delivered strong ~28% YoY and ~20% QoQ revenue growth at Rs3.7bn (largely in line with our estimate).

KFintech remains a dominant, cash-generative market infrastructure platform with leadership across domestic MF investor solutions and issuer services, underpinned by deep AMC relationships (~54% of AMCs; ~32% industry AAUM), strong annuity visibility and consistently high mandate win rates.

KFINTECH reported healthy performance during Q2FY26, with revenue at Rs3.1bn (+13% QoQ), ahead of consensus’/our estimates by ~2%, whereas EBITDA margin at 43.9% beat estimates of 42.3%.

Aided by Issuer Solutions’ strong, 13% y/y, performance and International & Other Investor Solutions’ 26% y/y, KFin Tech’s revenue grew 10.3% y/y to Rs3.09bn.

KFin Technologies (KFin) reported a 10% YoY growth in operating revenue to INR3.1b in 2QFY26 (in line). The revenue was driven by 10%/16%/33% YoY growth in domestic MF solutions/issuer solutions/international solutions segments.

KFin Technologies (KFINTECH) reported 33% YoY growth in operating revenue to INR2.9b in 3QFY25 (in-line), driven by 37%/17%/52% YoY growth in domestic MF solutions/issuer solutions/international solutions. For 9MFY25, revenue grew 33% YoY to ~INR8.1b.

KFin Technologies (KFINTECH) has a robust domestic MF RTA business (32% share in total MF assets) and a stable issuer charges business (45% share in market capitalisation of NSE 500 companies), and offers an optionality in international and alternatives fund administration
business. We argue the company has strong moats and shall deliver improved margins.

KFin Technologies (KFin) is a leading technology-driven financial services company providing comprehensive services and solutions to capital market ecosystem. We particularly note its growth potential in the emerging international segment, bolstered by strategic acquisitions while Indian MF RTA and issuer solutions provide a direct play on the surging Indian domestic capital markets and prospective AUM growth.

KFin Technologies Limited (KFin) is a leading technology-driven financial services company providing comprehensive services and solutions to the capital market ecosystem. Its clients include asset managers and corporate issuers across multiple asset classes in India and South-East Asia, and is now expanding to other parts of the world.

Incorporated in 2017, KFin Technologies Limited is a leading technology-driven financial services platform. The company provides services and solutions to asset managers and corporate issuers across asset classes in India and provides several investor solutions including transaction origination and processing for mutual funds and private retirement schemes in Malaysia, the Philippines and Hong Kong. As

IPO NOTE

Issue Snapshot:Issue Open: Dec 19 Dec 21, 2022Price Band: Rs. 347 366*Issue Size: 1500.0 cr (Entirely offer for sale)Reservation for:QIB atleast 75% eq shNon-Institutional upto 15% eq sh((including 1/3rd for applications between Rs.2lakhs to Rs.10 lakhs))Retail upto 10% eq shFace Value: Rs 10Book value: Rs 43.96 (September 30, 2022)Bid size: - 40 equity shares and in multiplesthereof100% Book built Issue IPO Note - KFin Technologies Limited