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 February 18, 2026.

Broker Research

February 18, 2026 / 12:22 IST

Buy

Emkay Global Financial' research report on KFin Technologies

KFINTECH’s Q3FY26 performance was impacted by the consolidation of Ascent Fund Services. The company delivered strong ~28% YoY and ~20% QoQ revenue growth at Rs3.7bn (largely in line with our estimate). Reported EBITDA margin of 40.9% was hit by the integration of Ascent which generated low single-digit EBITDA margin. The Domestic MF RTA business saw a ~2% shift in AUM mix toward ETFs and Passives, which led to a 2.6% QoQ decline in revenue yield. Issuer Solutions business saw healthy growth, driven by healthy annuity income and elevated corporate action activity. While Ascent currently generates low single-digit EBITDA margin, the management mentioned that it is EPSaccretive on cash basis. It remains confident about Ascent’s EBITDA margin expanding to company-level margin over the medium-to-long term as the business scales.

Outlook

To bake in Q3 developments, we raise our revenue estimates by ~1-2% and EBITDA margin forecasts by ~10-50bps over FY26-28, driving a ~2-3% increase in EBITDA estimates. We maintain BUY and Dec-26E TP of Rs1,400.

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