KFin Technologies Ltd (BOM:543720) Q3 2026 Earnings Call Highlights: Strong Revenue Growth and …

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Wed, February 18, 2026 at 10:04 AM GMT+9 5 min read

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**Revenue from Operations:** INR 323 crores, 11.4% growth year-on-year, 4.5% sequential growth.

**Revenue Including Ascent:** 27.9% year-on-year growth, 19.9% sequential growth.

**9-Month Revenue:** INR 906 crores without Ascent, 12.2% growth; INR 954 crores with Ascent, 18% growth.

**EBITDA:** INR 149.5 crores without Ascent, 14.6% growth; INR 151.6 crores with Ascent, 16.1% growth year-on-year.

**EBITDA Margin:** 40.9% including Ascent, 46.3% without Ascent for the quarter.

**Core PAT Growth:** 8% sequentially, 11.8% year-on-year without Ascent.

**PAT Margin:** 28.2% including Ascent, 31.2% without Ascent for the quarter.

**Cash and Cash Equivalents:** INR 487 crores without Ascent, INR 507 crores with Ascent.

**Diluted EPS:** INR 5.30 with Ascent, INR 5.44 without Ascent for the quarter.

**Domestic Mutual Fund Revenue Contribution:** 59.8% of total revenue.

**International Investor Solutions Revenue Contribution:** 16.7% of total revenue.

**Issuer Solutions Market Share:** 51.4% of Nifty 500 companies by market cap.

**National Pension System Growth:** 35% growth, 30% EBITDA margin.

**Alternate Investment Funds Market Share:** 39%, managing INR 1.8 trillion AUM.

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Release Date: February 16, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

KFin Technologies Ltd (BOM:543720) reported a robust revenue growth of 27.9% year-on-year for the quarter, driven by the successful integration of Ascent.

The company's EBITDA increased by 14.6% year-on-year, with margins remaining within the guidance range of 40% to 45%.

The acquisition of Ascent has significantly diversified the company's revenue streams, reducing reliance on domestic mutual funds from 71% to 59.8%.

KFin Technologies Ltd (BOM:543720) has expanded its international presence, with International Investor Solutions now contributing 16.7% to total revenue.

The company has achieved a milestone of managing over INR 35 crore folios, positioning it as a leading RTA globally.

Negative Points

The integration of Ascent has led to a dip in EBITDA margins by 300 basis points due to integration costs.

There is a noted decline in domestic mutual fund yield by about 2.6% due to a shift towards ETF metals.

The issuer solutions business faces challenges with reduced retail participation in the secondary market.

The international business, excluding Ascent, showed flat revenue growth despite a 9% to 10% increase in AUM.

The Ascent acquisition, while strategically beneficial, currently operates at lower margins compared to KFin Technologies Ltd (BOM:543720)'s core business.

 






Story Continues  

Q & A Highlights

Q: In this quarter, issuer solutions have seen a sharp margin expansion. Were there any nonrecurring items, and what drove the strength in this segment?A: There were no extraordinary items this quarter. The growth was purely organic, driven by a combination of IPOs and corporate actions, which traditionally peak in Q3. The increase in portfolio fees was due to winning several deals and transitioning large accounts at higher rates. - Venkata Satya Naga Nadella, CEO

Q: Employee expenses have been rising in single digits, providing good operating leverage. Is this sustainable, and how does AI factor into this?A: We are transitioning from a pyramid structure to a more rectangular one, focusing on senior, technically skilled individuals to drive automation and reduce manual errors. While payroll costs may stabilize, non-payroll costs might increase due to technology investments. We aim to maintain margins between 40% to 45%. - Venkata Satya Naga Nadella, CEO

Q: How do you see the Ascent acquisition becoming EPS accretive over time, given its current lower EBITDA compared to Indian operations?A: Ascent is already EPS accretive on a cash basis. The margin improvement will come from scale expansion and cost optimization. We expect Ascent’s margins to align with KFintech’s within three years, potentially exceeding them due to faster global growth and higher yields. - Amit Murarka, CFO - International Business

Q: Regarding the international business excluding Ascent, AUM growth is around 9% to 10%, but revenue seems flat. How will revenues pick up in this segment?A: The AUM has increased, but the yield has slightly decreased due to many funds still being on minimum fees. As these funds grow, the yield will improve. We expect platform revenue and larger contracts to enhance overall yields. - Vivek Mathur, CFO

Q: With AI emerging, does it make commercial sense for a third RTA to enter the market?A: While AI may reduce tech development cycle time, the domain knowledge and scale required in this business are significant barriers. The cost and risk of transition are high, making it difficult for new entrants to compete effectively. - Venkata Satya Naga Nadella, CEO

Q: How is the progress in winning medium to large-sized client mandates in the international business?A: We have started winning larger mandates in the context of the geographies we operate in. The sales life cycle is longer, but we are building for long-term growth, and conversions with medium to large AMCs are underway. - Venkata Satya Naga Nadella, CEO

Q: How do you see the issuer solutions business growing over the next 2 to 3 years?A: The growth will be driven by an increase in demat accounts, more companies going public, and improved market performance. We aim to unlock growth from 10%-12% to 15%-20% year-on-year. - Venkata Satya Naga Nadella, CEO

Q: What is the impact of asset mix on international business yields, particularly between hedge funds, public markets, and digital assets?A: The yield structures are similar across private mandates like hedge funds and digital assets. Public market funds have lower expense ratios, affecting yields. Ascent’s portfolio is more private mandate-focused, so yield differences are minimal. - Amit Murarka, CFO - International Business

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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