KFin Tech shares soars after strong inflow in choppy market, says Rs 250 SIP plan is positive

Kfin's revenue from operations stood at Rs 290 crore, up 32.6% on year, and net profit came in at Rs 90.18 crore, up 34.9% on year, with EBITDA margin at 45%.

Shares of Kfin Tech are sharply higher by over 8% on January 24 after Q3FY25 fine print, rebounding from a month-long downtrend that had taken the stock lower by close to 20% from 2024 highs.

The management sounded upbeat in its outlook, and told CNBC-TV18 during an interaction that the inflows have been very strong 'even in a volatile market'. The company is confident of continuing to expand at over 30% growth rate, and said the retail participation too has been increasing, supporting the business and AUM for Kfin Tech.

Kfin's revenue from operations stood at Rs 290 crore, up 32.6% on year, and net profit came in at Rs 90.18 crore, up 34.9% on year, with EBITDA margin at 45%. The management said it expects to sustain margin at these levels.

The international and other investor solutions revenue grew for the company grew by 53% on year, said the company. Jefferies in a recent note had pointed out the opportunities in the international business appear more exciting, as Kfin Tech has been getting licenses to launch operations in the south-east Asian economies.

Sreekanth Nadella, Managing Director and CEO, KFin Technologies called this a 'milestone quarter'.

"...we took a giant step in our international journey by joining as the ninth global partner to BlackRock’s Aladdin Provider network, a growing community of the world’s largest asset servicers," said Nadella. The company is betting on a wave of financialisation to play out in other Asian economies as has been the case in India since the pandemic.

The company added 366 clients added during Q3FY25, a growth of 20% on year and 5.5% QoQ.

Kfin Tech added that the proposed Rs 250 SIP by market regulator Sebi will make mutual funds more affordable for smaller investors and increase penetration.