Why KFin Technologies shares surged 9% today

Shares of KFin Technologies Ltd jumped 8.95 per cent to hit a high of Rs 934.80 in Monday's trade after the company posted a better-than-expected June quarter profit.

According to Motilal Oswal Financial Services Ltd (MOFSL), KFin reported a net profit (PAT) of Rs 75.2 crore in Q1 FY27, down 3 per cent year-on-year (YoY) and 7 per cent quarter-on-quarter (QoQ). However, the figure was around 7 per cent ahead of the brokerage's estimate, driven by operational efficiency.

"KFin reported a net profit of Rs 75.2 crore, down 3 per cent YoY/7 per cent QoQ (7 per cent beat led by operational efficiency) in Q1 FY27, with PAT margin of 21.1 per cent versus 28.2 per cent in Q1 FY26," MOFSL said.

The brokerage noted that operating revenue rose 30 per cent YoY and 3 per cent QoQ to Rs 360 crore in the June quarter, broadly in line with estimates.

Revenue from domestic mutual fund solutions grew 7 per cent YoY, while issuer solutions revenue increased 8 per cent YoY, beating estimates by around 5 per cent. International solutions registered a sharp 182 per cent YoY growth, primarily due to the contribution from Ascent.

On the cost front, total operating expenses increased 46 per cent YoY and 7 per cent QoQ to Rs 230 crore, in line with estimates. Employee expenses rose 44 per cent YoY to Rs 160 crore, while other expenses climbed 52 per cent YoY to Rs 73.8 crore. The cost-to-income ratio stood at 65.8 per cent, compared with 58.5 per cent in Q1 FY26.

EBITDA grew 7 per cent YoY but declined 5 per cent sequentially to Rs 120 crore. EBITDA margin came in at 34.2 per cent versus 41.5 per cent a year ago, but was ahead of MOFSL's estimate of 32.6 per cent. Other income rose 3 per cent YoY but declined 31 per cent QoQ to Rs 10.4 crore.

Separately, KFin Technologies' board approved a final dividend of Rs 12 per equity share.