KFin Technologies (KFINTECH) Q2 26/27 earnings summary

Executive summary

• Q2FY27 revenue was ₹4,017.96m, up 29.9% YoY; EBITDA was ₹1,610.3m and PAT was ₹1,003.42m.

• Growth was broad-based and supported by Ascent; international and other investor solutions revenue rose 157.9% YoY, or 20.9% excluding Ascent.

• Overall market share exceeded 33%; domestic mutual fund AAUM share was 33.1%.

• The Board approved unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026; auditors issued unmodified limited-review conclusions.

Financial highlights

• Q2 revenue from operations rose 29.9% YoY and 12.7% QoQ to ₹4,017.96m; H1 revenue was ₹7,583.32m, up 30.0% YoY.

• Q2 EBITDA was ₹1,610.3m, up 18.7% YoY; H1 EBITDA reached ₹2,830.1m, up 13.4%.

• Q2 reported PAT was ₹1,003.42m, up 7.5% YoY; H1 PAT was ₹1,755.56m, up 2.9%.

• Excluding Ascent, Q2 revenue grew 10.9% YoY, EBITDA 15.6% and PAT 12.0%.

• Q2 standalone revenue was ₹3,285.75m and net profit ₹1,058.13m; FY26 profit included a ₹116.34m standalone exceptional charge for Labour Code impacts.

Outlook and guidance

• FY27 targets remain 18%-20% revenue growth, 40%-45% EBITDA margin and 25%-30% PAT margin; the full-year average EBITDA margin target is 40%.

• Estimates remain unchanged absent a prolonged downturn; discretionary IT, automation, expansion and product-launch spending provide cost buffers.

• Issuer solutions revenue is expected to grow 20%+ YoY for FY27; mutual fund yields are expected to remain largely consistent in coming quarters.

• Ascent targets double-digit EBITDA margin in coming quarters and 20%+ next fiscal year, with progress toward core margins over the following two years.

• Nearly all transformation platforms are targeted for rollout by Q4FY27; issuer, pensions and wealth platforms were expected live within three months, and mutual fund FinEx completion in six to seven months.