KFin Technologies Reports ₹274.5 Crore Q1 Revenue, Stock Slides

Shares of KFin Technologies Ltd dropped nearly 7% on Friday, July 25, after the company posted a weaker-than-expected performance for the June quarter. The numbers fell short of year-ago comparisons. The tech-enabled financial services provider reported revenue of ₹274.5 crore for the quarter, marking a 3% decline from the previous quarter.

EBITDA for the quarter stood at ₹113.8 crore, down 7% year-on-year. The EBITDA margin came in at 41.5%, down from 43.25% in the previous quarter. Among the company’s key business segments, domestic mutual fund operations reported a modest 3% growth over the March quarter. But that was offset by weakness in other verticals.

The issuer solutions segment saw a sharp 22% drop, while the international solutions business declined 11% on a sequential basis, both contributing to the overall miss in performance. Margins across all three divisions contracted during the quarter. International solutions witnessed the steepest erosion, with margins narrowing by 1,581 basis points.

The issuer solutions business saw its margins shrink by 885 basis points, while margins in the domestic mutual fund segment slipped by 431 basis points, reflecting cost pressures and slower revenue growth across segments. KFin Technologies shares are trading at ₹1,150, which is a 6.7% dip on the National Stock Exchange.

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