KFin Technologies Ltd.: 1Q27: In-line quarter with mild yield and margin compression; retain Neutral

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KFin Technologies Ltd.: 1Q27: In-line quarter with mild yield and margin compression; retain Neutral

tration: INH000001873, (91-22) 6157-3000.

Rs 27.3tn (+16.4% YoY / +3.3% QoQ), outpacing the industry's 15.3% YoY; Harsh Wardhan Modi

equity AUM grew 14% YoY with the equity mix holding at 56.8%. Overall (65) 6882-2450

AUM market share firmed to 32.8% (+40 bps QoQ), and SIP share stayed harsh.w.modi@jpmorgan.com

resilient at 36.2%, driving 34% of industry net inflows. New-business J.P.J.P. MorganMorgan SecuritiesSecurities Singapore(Asia Pacific)PrivateLimited/Limited/J.P.

momentum held, headlined by a fresh RTA mandate from Alpha Alternatives Morgan Broking (Hong Kong) Limited

Fund Advisors and a data-lake platform win from a large MF distributor.

• International business (21% of revenues) drives top-line acceleration. The

international and other investor solutions segment, which includes Ascent,

grew by 182% YoY to Rs 1.03bn. Excluding Ascent and GBS, revenue growth

came in at 32.2% YoY. Management stated that Ascent’s revenue grew 32%

YoY to Rs 561mn for the segment; however, per our calculations, the EBITDA

margin of the Ascent business has declined 120bps QoQ to 6.8%. Ascent's

lower-margin profile at its current scale is the principal reason consolidated

EBITDA margin compressed to 34.2% (vs 39.4% ex-Ascent). Ascent added 18

funds during the quarter (6 of them with $100mn+ AUM).

• Modest growth in Issuer solutions (9% of revenues). The Issuer Solutions

segment reported a seasonally subdued quarter, with revenue of Rs 319.3mn,

up 4.7% YoY but down 2.1% QoQ. Despite the muted revenue print, the

franchise continued to expand, adding 672 new corporate clients to reach a base

of 11,275, while investor folios under management rose to175mn. Market