• EBITDA margin guidance: The company maintained its full-year EBITDA margin target of 40% to 45% despite Q1 EBITDA dropping 5% to ₹122 crore due to Ascent integration costs. Consolidated margins are expected to reach at least 40% by year-end, driven by cost optimization at the holding company and a pickup in issuer solutions activity from Q2.
• Ascent turnaround timeline: Ascent achieved 30% year-on-year organic revenue growth with EBITDA margins of 6% to 8%, though PAT remains negative. Management expects Ascent to reach double-digit EBITDA margins by the end of this fiscal year or early next year, turning PAT positive ahead of the initial two-year target.
• Revenue diversification target: Non-mutual fund revenue contribution rose to 38% from 24.5%, aligning with the target to reduce domestic mutual fund dependence to below 50% in three to five years. Growth will be led by international expansion, with the global fund administration business projected to grow at 25% to 30%.
• Capital allocation strategy: KFin holds ₹687 crore in cash, with ₹200 crore earmarked for dividend payouts and a 51% EBITDA-to-free-cash-flow conversion rate. Management is not planning any major acquisitions in the near term, prioritizing the integration and scaling of Ascent before considering mid-sized opportunities.