Revenue growth of 15%+ for FY26
Management expects overall revenue growth north of 15% for the full year, driven by mutual fund AUM growth and issuer solutions momentum.
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EBITDA margin maintained at 40-45%
CFO reiterated guidance of 40-45% EBITDA margin for FY26, with Q1 being seasonally weak and margins improving in subsequent quarters.
No further yield compression in FY26
Management stated that the yield compression in Q1 (to 3.43 bps) was due to contract renewals and volume discounts; no further compression expected for the rest of the year.
International business growth of 30%+
Management expects international and other investor solutions (ex-GBS) to continue growing at 30-35% YoY, with Essent acquisition adding further momentum.
EBITDA margin guidance maintained at 40%-45%
Management reiterated its EBITDA margin guidance range of 40%-45%, despite investments in technology and manpower.
Core domestic mutual fund revenue growth of 13%-15% sustainable
Management expects core domestic mutual fund revenue (excluding mark-to-market) to grow in the 13%-15% range on a sustainable basis.
International business to outgrow domestic growth
International operations and AIF fund accounting are expected to grow faster than the domestic mutual fund business.
Thailand subsidiary to accelerate client wins
With RBI in-principle approval for a Thailand subsidiary, management expects to win more local asset manager mandates.
EBITDA margin guidance of 40-45% maintained
Management reiterated 40-45% EBITDA margin guidance, expecting to sustain even after Ascent consolidation.
Ascent to be EBITDA neutral in FY26, double-digit margins next year
Ascent expected to be EBITDA neutral in FY26 and achieve double-digit EBITDA margins in FY27.
AIF AUM to cross INR 2 trillion next quarter
Management expects AIF AUM to exceed INR 2 trillion by next earnings call.
NPS fee structure moving to AUM-based basis points
Regulatory shift from fixed fee to AUM-based pricing for NPS, expected to be finalized in 3-4 weeks.
International revenue to reach 25% of total in 5 years
Management aims for international business to contribute 25% of total revenue within five years, up from ~11% currently.
Value-added solutions growth trajectory to sustain 60%
Management expects to maintain the 60% YoY growth trajectory for value-added solutions in coming quarters.
IT spend to remain 15-20% of revenue
CFO indicated IT spend (OpEx + CapEx) will continue at 15-20% of revenue, with percentage declining as revenue grows.
Cost growth limited to ~10% in FY26
Management expects expense growth to be contained around 10% in the coming fiscal year, with continued investment in IT and cloud.
CapEx of INR 60-70 crore in FY26
Capital expenditure for the next fiscal year is guided at INR 60-70 crore, primarily for infrastructure and platform development.
Non-MF revenue to reach ~50% in 3-5 years
Management targets non-mutual fund revenue to constitute about 50% of total revenue over a 3-5 year horizon, up from current ~35%.
Revenue growth 15-20% for FY26
Management reiterated guidance of 15-20% revenue growth for the full year, including Ascent.
EBITDA margin 40-45% for FY26
EBITDA margin guidance maintained at 40-45% for the full year, despite integration costs.
Ascent margins to reach Kfin levels in 3 years
Management expects Ascent's EBITDA margins to converge with Kfin's within 36 months through scale and cost synergies.
Domestic MF revenue mix below 50% in 2 years
Target to reduce domestic MF revenue contribution to under 50% within the next couple of years via faster growth in other segments.
EBITDA margin guidance of 40-45%
Management reiterated commitment to maintain EBITDA margins in the 40-45% range for the coming year.
Expense growth of ~10%
Expenses are expected to grow in the range of about 10%, excluding one-time investments in new geographies.
International pipeline of $25M+
The total pipeline for international business is over $25 million on a recurring annualized basis.
Launch of new wealth platform in Q1/Q2 FY25
The new wealth platform is expected to launch late Q1 to early Q2 of FY25.
18-20% top-line growth and 40-45% EBITDA margin
Management reiterated guidance for FY26, expecting revenue growth of 18-20% and EBITDA margins in the 40-45% range.
Essent acquisition neutral in FY26, accretive from FY27
The acquisition of 51% stake in AFS (Essent) will be EBITDA margin neutral in FY26 and become value-accretive from FY27.
TRA business launch expected in Q1 FY26
KFinTech has received in-principle SEBI approval for the TRA business and expects final approval to launch within the current quarter.
FY27 consolidated revenue growth 24-25%
Management expects top-line growth of 24-25% for FY27, driven by international business (60%+ organic growth) and domestic MF recovery.
FY27 EBITDA growth 16-17%
EBITDA expected to grow 16-17% in FY27, with margins around 39-40% as cost optimization offsets Ascent drag.
FY27 PAT growth ~10%
PAT growth expected around 10% for FY27, with potential upside if markets recover.
International organic revenue growth 60%+
International business (ex-Ascent) expected to grow over 60% organically in FY27, driven by new large fund wins and Philippines contract execution.