Buy KFin Technologies; target of Rs 1400: Emkay Global Financial

Emkay Global Financial is bullish on KFin Technologies has recommended buy rating on the stock with a target price of Rs 1400 in its research report dated October 29, 2025.

Broker Research

October 29, 2025 / 13:27 IST

buy

26 Aug, 2025 12:21

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Emkay Global Financial' research report on KFin Technologies

KFINTECH reported healthy performance during Q2FY26, with revenue at Rs3.1bn (+13% QoQ), ahead of consensus’/our estimates by ~2%, whereas EBITDA margin at 43.9% beat estimates of 42.3%. Resultantly, PAT at Rs0.93bn (+21% QoQ) came in ~5% higher than consensus’/our estimates. Going forward, MF revenue yields are unlikely to be materially impacted by pricing negotiations for the next 18-24 months. The management gave guidance for annualized yield decline in the 3.5-4% range. Issuer solutions business should see healthy momentum going ahead, with increased retail participation. While the company completed the acquisition of Ascent Fund Services in Oct-25, the management remains optimistic of large-deal wins in the international business driving further revenue growth. To bake in the Q2 developments, we increase our revenue estimates by ~1-2%; an increase in our EBITDA margin estimates by ~50-60bps results in ~2-3% increase in EBITDA over FY26-28E.

Outlook

We maintain BUY on the stock, with unchanged Sep-26E TP of Rs1,400, implying ~51x FY27E P/E.

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