Shares of KFin Technologies Ltd fell 6.64% to ₹1,150.80 in early trade on Friday, losing ₹81.80 in value and wiping off significant market cap despite reporting a 13.5% year-on-year rise in net profit for Q1 FY26. The sharp drop was primarily driven by margin pressure and a slight miss on both revenue and EBITDA compared to Street expectations.
The company reported a net profit of ₹77.2 crore for the June quarter, up from ₹68 crore in the same period last year. Revenue rose 15.6% YoY to ₹274 crore, and EBITDA grew 15% YoY to ₹113.7 crore. However, the EBITDA margin declined sequentially by 170 basis points to 41.5%, down from 43.2% in the previous quarter, which raised investor concerns.
The earnings miss on topline and operational profit, combined with its high valuation of 59.57x P/E, triggered profit booking. As of Friday’s session, KFin’s market cap stood at ₹197,110 crore, with the stock trading between a 52-week range of ₹727.75 to ₹1,641.35.
The stock reaction underscores investor sensitivity to margin trends and premium valuations, especially in tech-led financial services firms.
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