KFin Technologies Shares Rise 2% After ₹1,400 Cr Block Deals

KFin Technologies shares advanced more than 2% in Thursday's trade after 8.75% of the company's equity changed hands through two block deals, according to data available with the NSE.

As many as 1.51 crore shares changed hands at ₹925 apiece in the pre-market session, taking the total transaction value to around ₹1,400 crore.

General Atlantic is likely to be the seller in the transaction, although the identities of the buyers and sellers have not been officially disclosed.

General Atlantic Stake Sale In Focus

The reported floor price for the transaction was ₹919.56 per share, representing a 3% discount to KFin Technologies' Wednesday closing price of ₹948. The actual block trade took place at ₹925 per share, a discount of around 2.4% to the previous close.

The 8.75% stake that changed hands is also higher than the up to 8% stake General Atlantic was initially reported to be looking to sell.

General Atlantic held a 21.9% stake in KFin Technologies at the end of the June quarter. If the entire 8.75% block is attributable to General Atlantic, its holding would fall to roughly 13.2%. However, this remains subject to confirmation once the identities of the counterparties and final transaction details are disclosed.

KFin Technologies Q1 Performance

For the June quarter, KFin Technologies reported 30% year-on-year growth in operating revenue. However, total operating expenses rose 46%, with employee expenses increasing 44% and other expenses rising 52%.

EBITDA grew 7% year-on-year but declined 5% sequentially, while EBITDA margin stood at 34.2%, compared with 41.5% in the year-ago period.

The management's FY27 guidance implies 18-20% revenue growth despite a subdued market environment, supported by ongoing cost optimisation initiatives, according to MOFSL.

"For FY27, KFintech's Ebitda and PAT are likely to grow 17-20% and 12-15%, respectively," MOFSL said.

The brokerage added that consolidated EBITDA margin, including Ascent, is expected to exceed 40% by the end of FY26, with Ascent turning EBITDA-accretive by FY26-end/early FY27 and achieving full-margin convergence over the next 3-5 years.

MOFSL maintained its FY27 and FY28 earnings estimates based on KFin Technologies' Q1FY27 performance. It expects the company to deliver revenue, EBITDA and PAT growth of 22%, 22% and 18%, respectively, compounded annually over FY26-28E.