KFin Tech share price zooms 11% despite decline in Q1 profit

Kfin Tech reported a 2.6 per cent quarter-on-quarter growth in its topline to ₹356.5 crore. Meanwhile, profit after tax fell 7.3 per cent sequentially

Kfin Technologies Ltd.'s share price gained 11.20 per cent intraday on Monday after the company reported its April-June quarter results (Q1FY27) over the weekend. 

 

The fintech company's KFin average assets under management (AUM) grew 1.9 per cent from the previous quarter to ₹27.3 lakh crore. However, its adjusted profit after tax (PAT) fell 7.3 per cent sequentially to ₹75.2 crore.

 

Brokerage firm Motilal Oswal Financial Services noted that Kfin Technologies' structural tailwinds in the mutual fund industry will drive absolute growth in mutual fund revenue. "With its unique ‘platform-as-a-service’ business model that provides comprehensive end-to-end solutions enabled by proprietary technology solutions, KFin is well-positioned to benefit from strong growth across large markets in India and across the world," it added.

 

 

Growth opportunities in the international business through Ascent and the profitability of the business will be key monitorables, MOFSL said.

 

KFin announced the acquisition of a 51 per cent stake in Singapore-based Ascent Fund Services Pte. Ltd. for $34.68 million last year. Ascent Fund is engaged in the business of providing fund administration, corporate solutions and financial technology services to global alternative investment managers. 

 

Kfin Tech reported a 2.6 per cent sequential growth in its topline to ₹356.5 crore. The company's Earnings Before Interest, Tax, Depreciation and Amortisation for the quarter fell 5 per cent from the previous quarter to ₹122 crore. Notably, KFin's board also approved a final dividend of ₹12 per share. 

KFin share price 

 

KFin share price gained 11.20 per cent intraday to ₹953 apiece. As of 2:44 PM, the company's stock was up 10.86 per cent to ₹950 compared to a 0.95 per cent gain in the Nifty 50 at 23,992.95.

 

The stock gained 7.85 per cent over the past one week and in one-month period, KFin Technologies delivered an 8.80 per cent return.

However, the stock has underperformed on a longer-term basis. On a year-to-date basis, KFin Technologies shares have declined 11.67 per cent. Meanwhile, over the past one year, the stock has fallen 18.34 per cent. 

 

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