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Questions across 2 calls

Vivek Mathur

Firm not listed in source transcripts

Kfin Technologies Limited

Kfin Technologies Limited CC-Feb26.pdf · 2026-02-16
Thank you, Devesh. Good morning, everyone. This is Vivek Mathur, CFO for KFin Technologies Limited. This time, I'm starting with the good news of successful integration of Ascent with KFintech, and you would have seen the results, and I'll give you some color on the financials. And then after that, I'll hand over to Sreekanth for the business commentary. The overall performance for the quarter has the revenue from operations, which have grown to INR323 crores, which is 11.4% growth for the same quarter versus last year same quarter and a sequential growth of 4.5% quarter-on-quarter. For the 9 months, this is without Ascent. If you look at including Ascent, our top line growth has been very robust for the quarter. It's 27.9% year -on-year for the same quarter and 19.9% sequentially quarter-on-quarter. So you can see the impact of Ascent's top line coming in where the growth has been sequentially without Ascent 4.5% and with Ascent 19.9%. For the 9 months ended December 31, 2025, the revenue was INR906 crores, which is a 12.2% growth year -on-year without Ascent and INR954 crores including Ascent, which is an 18% growth year-on-year. The EBITDA has also gone up 14.6% year-on-year and stands at INR149.5 crores without Ascent and INR151.6 crores with Ascent. And the growth year -on-year, including Ascent was 16.1% and sequentially 11.7% for the quarter. If you look at 9 months, including Ascent, we are at 12.5% growth for the 9 months in terms of the EBITDA at INR401 crores. So EBITDA margins have also been well within our guidance in terms of including Ascent, it is 40.9% for the quarter, which is a dip from the last quarter for the 9 months at 300 bps because of the integration that we have done. There are charges related to purchase price allocation in terms of client contracts amortization and brand amortization of about INR2.8 crores for this quarter, which is the impact. And quarter- on-quarter, you will see an impact of INR3.3 crores in terms of amortization in KFin Singapore because of the Ascent acquisition. So -- but we'll continue to remain range bound. The EBITDA margin for the quarter without Ascent was 46.3%, and for the 9 months ended FY '26 at 44% without Ascent and 42% with Ascent. It is overall resulting in Core PAT going up sequentially by 8% and yea r-on-year by 11.8% without Ascent. And with Ascent, the growth in Core PAT means without the impact of the onetime hit of Labour Code, which is about INR8.6 crores. And therefore, the Core PAT means without the onetime impact of Labour Code. So for the 9 months ended December '25, the year -on-year growth, including Ascent for the Core PAT for the quarter was 9.1% sequentially 5.4% growth. And for the year, INR268.9 crores, it's an 8.6% growth year-on-year. Our PAT margins at the end of Q3, including Ascent's are at 28.2% for the quarter, including Ascent's at 26.5%. Without Ascent for the quarter is 31.2% and for the 9 months, it's 29.9%, which is well within the range that we have been giving the guidance f or. We are having cash and cash equivalents of INR487 crores without Ascent and with Ascent INR507 crores. And the diluted EPS is at INR5.30 with Ascent and INR5.44 without Ascent for the quarter and annualized 9 months is INR15.13, which is a growth of 5.5%, including Ascent. It will be interesting to note the mix of the revenue change that has happened. The domestic mutual fund revenue for the quarter now contributes 59.8% of total revenue. International Investor Solutions is now 16.7%. So domestic mutual fund used to be in Q3 FY '25, about 71%, which has come down to about 60% now because of the acquisition of Ascent. And the International Investor Solutions, which used to be around 4% is now in the range of about 16.7% in Q3 FY '26. Issuer solutions continues to be in the range of 13%, alternates about 5.5%, NPS and other services around 1% each. And GBS, which is a bu siness which we are winding up is becoming negligible over a period of time. So our objective has been to move towards diversification, and it's a true reflection of how the future quarters are going to look like. This time, we integrated Ascent effective 13th October 2025. So you will see the impact of Ascent on a going-forward basis on similar lines. As a result of a change in the ETF for metals, you would have seen that the domestic mutual fund yield has slightly come down by about 2.6%. And that is something which we believe is a phenomenon where there is lot of participation from the investor community in terms of metals, ETF metals and there is almost a 200 basis point shift in terms of our AUM mix towards passives, and that has come do wn a little bit on equity and debt, respectively. That's more to do with the market commentary that Sreekanth will cover. But this is what I wanted to talk about in terms of financial performance, including Ascent and without Ascent to start with. Over to you, Sreekanth for the business performance and the developments.
Sreekanth, I'll take over this question. On the international business, while we have seen that the revenue has gone up without Ascent for the GFS is about 5.7% sequentially quarter -on-quarter and a little more than 11% year -on-year. The AUM has come down slightly. And the bps -- AUM has gone up, but the bps has come down slightly from 4. 73% to 4.13% YTD, December '25. That is largely because many of the funds are still on the minimum fee. And as they cross the minimum fee, the yield will come in, in terms of bps-based pricing. And we do expect with the newer contracts coming in, platform revenue coming in from internati onal business that Sreekanth talked about earlier, the overall bps will improve as we go forward and start winning larger contracts, which Sreekanth alluded to earlier in his commentary. Does that help, Lalit?
Kfin Technologies Limited CC-Nov25.pdf · 2025-10-28
Sure, Sreekanth. On the MF VAS revenue, it's currently 5% of the MF revenue. And we expect that it will continue to grow. It has been growing steadily. It was about 4.8% in the first quarter. It has grown to 5.2% in this quarter. And on the question on Ascent numbers, there is a one-off onetime INR2.8 million hit they have taken. One out of INR2.8 million, INR2.1 million relates to staff retention because of the transaction. We wanted them to make sure that the core staff continues and there is a retention plan around it. And another INR0.7 million is transaction-related cost. If we ignore this onetime, they are same as in terms of achieving breakeven and a little bit of profit that they have made.
Sreekanth, I'm requesting Amit to talk about Ascent and then maybe you can pick up about domestic mutual fund, and then I'll pick up the cost. Amit?