KFin Technologies’ Q2 revenue rises 29.9% to 4,018 million rupees
Key Facts
KFin Technologies reported revenue from operations of 4,018.0 million rupees in the second quarter of fiscal 2027, up 29.9% year on year, while net profit after tax rose 7.5% to 1,003.4 million rupees. The results, published by EquityBulls citing a company statement, showed diluted earnings per share of 5.78 rupees, up 7.5% from the year-earlier period. The figures highlight a gap between revenue and profit growth during the quarter. Sequentially, revenue rose 12.5% to 402 crore rupees from 356.5 crore in the first quarter. Net profit also rose 33.4% to 100.3 crore rupees, compared with 75.2 crore in the previous quarter.
EBITDA accelerated sequentially, rising 32% to 161 crore rupees from 122 crore, while its margin widened to 40.05% from 34.2%. Year on year, EBITDA was about 1,610.3 million rupees, up 18.7%. The reported margin was 40.1% including Ascent, compared with 45.8% excluding it. The comparison shows the effect of including Ascent’s business in the margin calculation alongside strong revenue growth. Chief Executive and Managing Director Srikrishna Nadella said the sequential expansion in EBITDA came from "scale gains in non-mutual fund activities, productivity gains from AI and robotic process automation, and cost management."
Revenue in the International Solutions and Other Investor Solutions segment increased 157.9% year on year. Excluding Ascent, the segment’s revenue growth rate fell to 20.9%, while Ascent Fund Services’ revenue alone rose 31.3%. International clients numbered 515, including 394 at Ascent and 121 at KFintech SEA. International assets under management also rose to $51.9 billion, compared with $10.6 billion in the year-earlier quarter. The figures put international expansion at the forefront of the company’s growth drivers, with growth rates varying between the segment overall and Ascent’s business.
At the asset level, KFin’s average assets under management rose 15.1% year on year in the second quarter, compared with industry growth of 13.1%. The company’s share of total average assets under management was 33.1%. In the first half of fiscal 2027, revenue from operations increased 30.0% to 7,583.3 million rupees. But net profit for the six months ended September rose only 2.9% to 1,755.6 million rupees. The half-year results show revenue continuing to grow faster than profit, a gap also evident in the second-quarter figures.
The results coincided with Jio Platforms’ IPO process, for which KFin Technologies is the registrar, and its website made allotment status queries available. The Securities and Exchange Board of India had listed the company’s red herring prospectus on 15 October 2026. This came before allotment status became available on 27 October. These events provide a timeline for the overlap between the company’s results and IPO activity, without establishing that the IPO caused the share price movement.
Nadella said the company’s priorities include international expansion and AI-powered platforms, alongside cost control. The company links the sequential improvement in EBITDA to scale gains in non-mutual fund activities, productivity and cost management. Net profit, meanwhile, grew more slowly than revenue year on year, while the EBITDA margin was lower when Ascent was included. Client and international asset figures indicate an expansion of activity beyond the domestic market during the period. Results in coming periods will provide the next measure of whether international revenue growth continues and how it translates into profit and margins.