KFIN Technologies has attracted a mixed rating from brokerages after it reported its fourth-quarter results. The company, which is the market leader as a mainboard IPO registrar, has seen some cut in its target price on the expectation of margin pressure.
Here is a detailed analysis of the investment rationale driving broking recommendations for KFin Technologies
Jefferies on KFin Tech
The international brokerage house maintained its ‘Buy’ rating on the stock as the better Mutual Funds (MF) yield beat estimates. It has a target price of Rs 1,200, implying an upside of over 26% from the current market price.
KFin Technologies’ Q4Y26 EBITDA was 5% ahead of Jefferies’ estimates, led by better-than-expected top line in the domestic MF segment. The MF Registrar and Transfer Agent yield of 3.25 bps was ahead of estimates of 3.15 bps, but sequentially lower due to a higher share of ETF AUM.
Ascent’s revenue grew by 27% YoY, winning 127 new funds (including 6 with over $100 million AUM) during the quarter. Its net profit (excluding one-offs) was 11% above estimates, due to higher other income.
Nuvama on KFin Technologies
However, Nuvama Institutional Equities said that due to margin pressure, earnings missed estimates. This led the brokerage house to trim the target price to Rs 1,220 from Rs 1,450, implying an upside of 25%. Nonetheless, the brokerage maintained its ‘Buy’ call on the stock.
The company reported a revenue growth of 22.9% year-over-year and a drop of 6.3% quarter-on-quarter, which was dragged by a soft showing in issuer solution service. Muted primary markets led the issuer solution segment to post a revenue fall of 16.1% YoY and 34.5% QoQ to Rs 35.6 crore.
Its MF yields fell to 3.26 bps as against the estimate of 3.41 bps, driving MF RTA revenue by just 8.2% YoY to Rs 220 crore. The firm’s management said that the decline in yield was due to higher flows in ETFs and metal-based funds.
KFin Tech has also won two SIF mandates from AMC clients and a contract from an AMC to develop a digital asset.
Also, its market share in mainboard IPOs in terms of issue size decreased by 1,460 bps YoY to 58.3%, and it continues to be the market leader with a share of 52.3% of NSE 500. Segmental margins fell 2891 bps QoQ to 37.2%.
With Ascent integration in Q3FY26, the international segment shot up 133.7% YoY. Margin fell for all revenue streams, dragging overall EBIT margin to 29.2% (-809 bps YoY and -538 bps QoQ).
KFin Tech share price performance
The share price of KFin Tech has fallen 7.2% in the last five trading sessions. The stock has moved a little in the past one month and dropped 18.5% in the last six months. KFin Technologies’ share price has fallen 20.5% over the last one year.
KFin Tech Q4FY26 results
The firm recorded a net profit of Rs 81.15 crore in Q4 FY26, a drop of 4.6% YoY from Rs 85 crore reported in Q4 FY25.
Its revenue from operations surged 22.9% YoY to Rs 347.33 crore in Q4 FY26, compared to Rs 282.70 crore in the same quarter last year.
The company’s EBITDA stood at Rs 128.51 crore, marking an increase of 5.1% YoY, while margins moderated to 37% versus 43.2% in Q4 FY25 and 40.9% in the previous quarter