The invisible force managing Rs 30 lakh crore of Indian wealth: Why Motilal Oswal sees 10% upside potential

An invisible giant quietly powers one-third of India’s mutual fund wealth. Motilal Oswal analysts say this fintech backbone could deliver a 10% gain as it upgrades its tech and expands globally.

Written by Shivangini Gupta

December 31, 2025 11:44 IST

KFin Technologies Motilal Oswal 10 percent upside mutual fund RTA India

Motilal Oswal flags upside in KFin Tech — the ₹30 lakh crore mutual fund backbone driving India’s fintech engine.

While most investors focus on picking the right fund manager, a key financial play is silently managing the records and transactions for a massive chunk of India’s wealth. KFin Technologies acts as the essential backbone for the investment industry, handling the complex data that keeps the markets moving.Given the IPO rush recently, this stock has been in the news. Motilal Oswal analysts have shared a positive outlook, maintaining a ‘Neutral’ rating with a target price of Rs 1,200. This suggests the stock could climb about 10% from its current level.

Motilal Oswal on KFin Tech: The investment rationale

Here is a detailed analysis of Motilal Oswal’s investment rationale and key triggers for the stock-

Here are the five key findings from Motilal Oswal’s analysis.

1. A dominant market leader

The business of managing mutual fund records is a tightly controlled space. Motilal Oswal notes that KFin services 29 out of 54 Fund Houses in India. They manage assets worth approximately Rs 25 lakh crore, which gives them a 32.5% share of the total industry. Because these fund houses find it very difficult and expensive to switch to a different provider, KFin enjoys a very stable and predictable income.

2. International business growing at 30%

KFin is not just a prominent India story. While their domestic mutual fund revenue grew by 10%, Motilal Oswal found that their international operations are growing much faster at a rate of 30%. This global segment now contributes 14% to their total revenue, helped by the purchase of Ascent, which allowed them to manage private-market funds.

3. The power behind mega IPOs

If you have applied for a major IPO recently, KFin Tech was the most likley registrar. Motilal Oswal points out that KFin Tech handled 43.8% of large mainboard IPOs (by issue size) in the second quarter of FY26. Beyond the initial listing, they continue to earn money by providing services to over 500 companies listed on the NSE, ensuring a steady stream of recurring fees.

4. Massive tech upgrade for 50% of investors

KFin is currently replacing its 40-year-old core technology with a modern platform called “FinEx.” This system supports 50% of all retail investors in India and manages over Rs 30 lakh crore in assets. Motilal Oswal reports that this upgrade will help the company onboard clients faster and lower its operational costs over time.

5. Strong profit outlook

The analysts at Motilal Oswal view KFin as a high-quality business with visible growth. They expect the company to deliver an 18% growth in Profit After Tax (PAT) every year between FY25 and FY28. While they mention potential risks like changing government regulations on fees, their Rs 1,200 target is backed by KFin’s ability to generate high cash flow and maintain a strong position in the market.

According to Motilal Oswal, KFin Tech trades at a premium to traditional capital-market intermediaries, reflecting revenue visibility and high return potential.

This article was first uploaded on December thirty-one, twenty twenty-five, at forty-four minutes past eleven in the morning.