KFin Technologies shares slipped around 4 per cent in early trade on Thursday as a decline in quarterly profit weighed on investor sentiment despite strong revenue growth. The stock fell to a low of ₹936.25 from the previous close of ₹977.30 and was trading at ₹952.75 on the NSE around 10.10 am.

The company reported a 4.5 per cent y-o-y decline in consolidated net profit at ₹81.14 crore for the quarter ended March 2026, compared to ₹85.05 crore in the same period last year. However, revenue from operations rose 23 per cent y-o-y to ₹347.33 crore, driven by growth in core segments. On a full-year basis, profit after tax increased to ₹343.71 crore in FY26 from ₹332.62 crore a year ago, indicating steady underlying performance despite quarterly volatility. The board also recommended a final dividend of ₹12 per share.

Global brokerage Jefferies maintained a buy rating on the stock with a target price of ₹1,200, noting that Q4 EBITDA came in 5 per cent ahead of its estimates, supported by better-than-expected performance in the domestic mutual fund segment. It added that mutual fund RTA yields stood at 3.25 basis points, ahead of estimates, though marginally lower q-o-q due to a higher share of ETF assets under management. The brokerage also highlighted strong momentum in the Ascent platform, where revenue grew 27 per cent y-o-y with 127 new fund wins during the quarter. Adjusted profit was 11 per cent above estimates, aided by higher other income.

Domestic brokerage Motilal Oswal highlighted that structural tailwinds in the mutual fund industry are expected to drive long-term growth for the company. It noted that KFin’s platform-as-a-service model and proprietary technology solutions position it well to capitalise on opportunities in both domestic and international markets. The brokerage added that scaling up of the Ascent business and its profitability trajectory will remain key monitorables going ahead, with detailed estimates to be updated after the management interaction.

Published on April 30, 2026