1. At a Glance
KFin is doing to financial back-end what Zomato did to food delivery—make it look sexy and scalable. In Q1 FY26, it raked in ₹274 Cr revenue (+15% YoY), ₹77 Cr PAT (+13.5%), and sealed a US$34.7 million deal to buy Ascent Fund Services in Singapore. Because India wasn’t big enough for this capital market Swiss knife.
2. Introduction with Hook
Imagine if Zerodha and Infosys had a baby who grew up hanging out with BlackRock, issuing dividend slips, and doing everyone’s backend paperwork. That’s KFin.
- Q1 PAT: ₹77 Cr
- OPM: 41% (fatter than your mutual fund returns)
- Debt: Basically a rounding error
It’s not flashy, but it handles ₹30 lakh crore in AUM like it’s just another Tuesday.
3. Business Model (WTF Do They Even Do?)
KFin is the guy behind the scenes of your mutual fund purchase.
Main gigs:
- Registrar & Transfer Agent (RTA)
- For 25+ AMCs. Basically, the mutual fund’s trusted paperwork babysitter.
- Issuer Services
- IPOs, dividends, splits—anything corporate action-y.
- Investor Services & KYC Solutions
- Yes, that annoying Aadhaar-PAN link reminder? Possibly their fault.
- International Ops
- Malaysia, Philippines, HK, and now Singapore—collecting funds like Pokémons.
So yeah, it’s the B2B ninja of finance. You never see it, but without it, SEBI would cry.
4. Financials Overview
| Metric | Q1 FY26 | YoY Growth |
|---|---|---|
| Revenue | ₹274 Cr | +15.36% |
| Net Profit | ₹77 Cr | +13.5% |
| EBITDA | ₹114 Cr | +14% |
| OPM | 41% | Stable AF |
Commentary:
Margins are smoother than ETF tracking errors. Profit growing slower than before, but still consistent. Efficiency levels? Warren Buffett would nod.
5. Valuation
CMP: ₹1,233
Market Cap: ₹21,226 Cr
Fair Value Range: ₹1,000 – ₹1,400
Method 1: P/E Valuation
- EPS TTM: ₹19.89
- Sector P/E: 50x
- FV = 19.89 * 50 = ₹995
- With growth premium (Singapore, BlackRock deal): ₹1,200–₹1,400 fair range
Method 2: EV/EBITDA
- EV ~₹21,200 Cr
- EBITDA TTM = ₹493 Cr
- EV/EBITDA ~43x → Rich
You’re paying up, but you’re also getting recurring revenue, 90% retention, and compliance-grade stickiness.
6. What’s Cooking – News, Triggers, Drama
- Ascent Fund Services deal (US$34.7M): Expands KFin into fund administration. Think of it as “FinOps SaaS but global.”
- Singapore subsidiary launched: Big fish pond alert.
- BlackRock’s Aladdin partnership: Yup, they’re literally inside the genie lamp of global finance.
- Joint Venture with CAMS (MF Central): Frenemies building infra together. Peak finance diplomacy.
This ain’t gossip. It’s strategic. And potentially, shareholder-happy.
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹172 Cr |
| Reserves | ₹1,236 Cr |
| Borrowings | ₹47 Cr |
| Total Liabilities | ₹1,751 Cr |
| Cash & Inv. | ₹462 Cr |
Key Take:
Minimal debt, strong reserves, and just enough cash to go shopping in Southeast Asia.
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹223 Cr | ₹-204 Cr | ₹7 Cr | ₹27 Cr |
| FY24 | ₹289 Cr | ₹-178 Cr | ₹-127 Cr | ₹-15 Cr |
| FY25 | ₹399 Cr | ₹-323 Cr | ₹-95 Cr | ₹-19 Cr |
Healthy cash flow from operations. Investing heavily in acquisitions. Think less dividends, more global domination.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 26.1% |
| ROCE | 34.2% |
| OPM | 44% |
| D/E | 0.03 |
| P/E | 62.1x |
ROCE is hotter than a pre-IPO fintech startup. And that 44% margin? SaaSy without being a tech bro.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹720 Cr | ₹298 Cr | ₹196 Cr |
| FY24 | ₹838 Cr | ₹364 Cr | ₹246 Cr |
| FY25 | ₹1,091 Cr | ₹479 Cr | ₹333 Cr |
3-year CAGR:
- Revenue: 19%
- PAT: 31%
- EBITDA Margin: Basically flat at baller levels.
11. Peer Comparison
| Company | Revenue (Cr) | PAT (Cr) | P/E | ROE |
|---|---|---|---|---|
| CDSL | 1,082 | 526 | 66.6 | 32.6% |
| CAMS | 1,334 | 422 | 49.2 | 43.9% |
| KFin | 1,127 | 342 | 62.1 | 26.1% |
Not the cheapest, but definitely growing faster than your index fund. And CDSL doesn’t have a BlackRock partnership, does it?
12. Miscellaneous – Shareholding, Promoters
| Holder | Mar ’24 | Jun ’25 |
|---|---|---|
| Promoters | 33.06% | 22.90% |
| FIIs | 22.80% | 27.81% |
| DIIs | 21.47% | 23.71% |
| Public | 22.67% | 25.59% |
Promoters trimming stake = concern? Maybe.
FIIs upping stake = we like money.
DIIs = quietly accumulating like aunties at a Diwali sale.
13. EduInvesting Verdict™
KFinTech is India’s digital registrar muscle wrapped in a SaaS-like shell.
Great margins. Recurring revenue. Global ambition.
Valuation’s rich, but so is the balance sheet and vision.
A strong KYC partner. And even stronger K-a-Ching engine.
Written by EduInvesting Team | 24 July 2025
Tags: KFin Technologies, Q1 FY26 Results, Ascent Acquisition, BlackRock Aladdin, EduInvesting Premium
