KFin Technologies Q2 Results: Revenue Up 30% to ₹402 Crore, Profit Rises 7.5%

KFin Technologies Q2 results came in on the evening of October 26, and the headline is a split one. Revenue for the September quarter rose 29.9% year-on-year to ₹4,018.0 million (about ₹401.8 crore), but profit after tax grew a much slower 7.5% to ₹1,003.4 million (about ₹100.3 crore). The gap between those two numbers is the story of this quarter, according to the company’s press release filed with NSE.

KFin Technologies Q2 results: the key numbers

All figures below are consolidated, from the key-figures table in KFintech’s release. Crore values are simple conversions from the company’s ₹ million figures.

• Revenue from operations: ₹401.8 crore, up 29.9% from ₹309.2 crore in Q2 FY26, and up 12.7% from ₹356.5 crore in Q1 FY27.
• EBITDA: ₹161.0 crore, up 18.7% year-on-year and 32.0% quarter-on-quarter.
• EBITDA margin: 40.1%, against 43.9% a year ago and 34.2% in the June quarter.
• Profit after tax: ₹100.3 crore, up 7.5% year-on-year from ₹93.3 crore and up 33.4% from ₹75.2 crore in Q1.
• PAT margin: 25.0%, down from 30.2% a year ago.
• Diluted EPS: ₹5.78 for the quarter (not annualised), against ₹5.38.

CNBC-TV18’s results liveblog led with the sequential view, a 33.4% jump in profit to ₹100.3 crore over the June quarter, which matches the company’s table.

Why profit lagged revenue

The answer sits in one word the release keeps repeating: Ascent. Ascent Fund Services is KFintech’s fund-administration business, and it carries thinner margins than the core registrar work. Excluding Ascent, EBITDA margin was 45.8% and PAT margin 30.5%. Including it, those fall to 40.1% and 25.0%. So the international push is adding revenue fast, while pulling the blended margin down.

And the push is big. Revenue from international and other investor solutions rose 157.9% year-on-year, or 20.9% if we strip out Ascent. Ascent’s own revenue grew 31.3%. International clients now number 515 (394 under Ascent, 121 under KFintech SEA), and assets serviced abroad rose to US$51.9 billion from US$10.6 billion a year earlier. Non-domestic mutual fund business now makes up 42.1% of overall revenue.

The domestic engine

At home, the mutual fund registrar business kept outgrowing the industry on overall assets. KFintech says its average AUM grew 15.1% year-on-year against 13.1% for the industry, taking its overall market share to 33.1%. Equity AAUM was a touch slower, though: 14.3% growth versus 15.0% for the industry, with market share at 32.8%. A small gap, but worth tracking over the next few quarters. If you are new to how fund costs flow through, our explainer on direct vs regular mutual fund plans covers the investor side.

Elsewhere, the company added 437 corporate clients in issuer solutions and puts its share among NSE500 companies (by market capitalisation) at 50.2%. It services 785 alternate funds with a 37.2% market share. Its NPS subscriber base grew 41.2% to 2.5 million, against 14.1% growth for the industry.

Half-year picture and what it means

For H1 FY27, revenue rose 30.0% to ₹758.3 crore while PAT grew just 2.9% to ₹175.6 crore. EBITDA margin for the half was 37.3% against 42.8% a year earlier.

Our read: the September quarter showed margins recovering sharply from a weak June quarter, which is the encouraging part. But on a year-on-year basis KFintech is still trading margin for growth. MD and CEO Sreekanth Nadella pointed to “shallow momentum in the domestic public markets” while crediting deal wins and international scale. Whether the international book can move closer to core-business margins is the question the next few quarters need to answer. For a checklist on reading numbers like these, see our guide on how to analyse quarterly results, and compare with Paytm’s Q2 results from the same evening.

Source: KFin Technologies press release (NSE filing, October 26, 2026); CNBC-TV18 Q2 results liveblog.

Disclaimer: This article is for information and education only and is not investment advice. Please consult a SEBI-registered adviser before making any investment decision.