KFin Technologies Ltd Management Discussions

ECONOMIC OVERVIEW

Global economy has shown resilience in 2025, with GDP growth at 3.1%, despite major trade disruptions and policy uncertainty, with industries adapting quickly to changing business environment, helped by lower-than-announced U.S. tariffs, accommodative financial and fiscal conditions, and AI-led investments. However, the heightened geopolitical tensions in Middle East in early 2026, have introduced fresh headwinds, damaging critical energy infrastructures, disrupting global supply chain and surge in global energy and allied derivatives prices. Inflation pressures have intensified, with G20 inflation projected at 4.0% in 2026 before easing to 2.7% in 2027, assuming gradual moderation in prices from mid-2026. According to the IMFs April 2026 assessments, the global GDP growth is projected to ease to 3.1% in 2026 before a modest recovery to 3.2% in 2027. While the growth remains uneven, with advanced economies showing signs of moderation, emerging economies like China and India demonstrating varied resilience. Global financial market volatility has increased, especially in Asia, confronting the geopolitical crisis, potential inflationary pressures, rising risks of further tightening in financial conditions, and several amplification channels that could delay the recovery. Nonetheless, resilient corporate balance sheets and broadening AI-driven productivity gains are supporting technology and investment flows. Further, faster resolution of geopolitical conflicts could quickly moderate energy prices and restore risk appetite, while fiscal prudence and anchored inflation expectations from global central banks offer a pathway to stabilise sentiment and unlock sustainable capital-market recovery.

Economic growth in India accelerated at 7.6% in the fiscal year 2026 amid resilient household consumption, steady public investment, and lower-than-expected drag from net exports. Headline inflation hit record lows, averaging around 1.7 - 2.1% through much of the year, the sharpest decline among major emerging markets and developing economies, led by favourable monsoons, and goods and service tax (GST) rationalisation. Private consumption grew faster during the year, stimulated by lower income tax and GST, and falling food prices. Governments public investments remained a key pillar with elevated capital expenditure at ~4.0% of the GDP, driving growth while aiming for continued fiscal discipline. Private investments had a robust expansion, responding to easing financial conditions, including declining interest rates, and healthy corporate balance sheets. The Indian Rupee faced its worst performance in 14 years, depreciating by ~10 11% in FY 2025-26 against the US Dollar, contributing to net foreign portfolio investors outflows of ~USD 19 billion in FY 2025-26, highest ever in the past 34-years. However, Indias strong forex reserves, USD 697 billion as of April 3, 2026, and RBI pro-active measures, allowed it to smooth volatility.

In FY 2026-27, growth is projected to moderate to 6.8 7.2%, as per the Economic Survey of India, with downside risks from elevated global energy prices, triggered by geopolitical conflict. Consumer inflation, as per the Reserve Bank of India (RBI), is estimated to rise to 4.6%, though well within the tolerance range of 2 - 6%, thereby supporting the monetary measures. GST rationalisation pass-through, fiscal prudence, and hike in allowances for central government employees are expected to support demand and provide some relief. Despite global uncertainties and supply chain disruptions, India will continue to maintain its position among the worlds fastest-growing major economies. Growth in public investments, governments strong balance sheet, push for structural reforms and Made-in-India initiatives, and resilient domestic demand will continue to drive domestic growth.

INDUSTRY OVERVIEW

Global Asset Management Overview

The global asset management industry continued to expand in 2025, with assets under management (AUM) growing by 11% year-on-year to reach approximately US$147 trillion, supported largely by favourable market performance across asset classes and regions.

However, this growth remains heavily dependent on external factors, with more than 80% of revenue expansion driven by market appreciation rather than net new inflows, highlighting a persistent structural reliance on market tailwinds. While industry profitability remains resilient with margins above 30%, underlying economics are under pressure as costs continue to grow faster than revenues, fee compression intensifies due to the dominance of passive strategies, and product mix shifts reduce average fee yields. Growth is becoming more fragmented, driven increasingly by retail investors (accounting for over 60% of AUM expansion), faster-growing regions such as Asia-Pacific, and alternatives, which continue to command a disproportionate share of revenues despite a smaller share of AUM.

Looking ahead, the industry is undergoing a structural transformation where market performance alone will no longer sustain growth, and capturing net flows has emerged as the primary competitive differentiator.

Asset managers will need to realign strategies toward structural demand shifts such as generational wealth transfer, the rise of digital-native investors, and the transition from defined-benefit to defined-contribution retirement systems, all of which are reshaping client behaviour, distribution dynamics, and product demand.

At the same time, geographic diversification is gaining importance amid geopolitical uncertainty, with investors increasingly reallocating capital across regions.

The industry must navigate intensifying fee pressure, rising operating costs, and increasing competition, as traditional sources of advantage such as investment performance and scale become commoditised. Distribution is emerging as the key battleground, requiring firms to build scalable, data-driven commercial engines and embed themselves into client ecosystems. Technology will be central to this transformation, with AI expected to unlock 25 35% cost efficiencies, enhance research and client coverage, and enable personalisation at scale, although most firms remain early in their adoption journey. To drive sustainable growth and differentiation, asset managers will need to simplify operating models, expand into scalable product structures such as ETFs and private markets, leverage partnerships and outsourcing, and build AI-first capabilities. Firms that successfully combine technology, efficient cost structures, and strong distribution will be best positioned to capture future growth in an increasingly competitive and fragmented landscape.

GLOBAL ALTERNATIVE INVESTMENT FUND (AIF) INDUSTRY OVERVIEW

The global alternative investment management industry-covering private equity, hedge funds, private credit, infrastructure, and real assets continues to act as a central pillar of global capital markets. As of 2025, alternatives AUM advances further to an estimated over US$ 21.0 trillion, delivering over 9% year-on-year growth, representing roughly 15% of total global AUM, yet generating disproportionately over 50% of industry revenues, due to higher fee structures and performance-linked income. As per Preqins latest macro outlooks, this capital continues to scale steadily toward a projected US$ 29+ trillion by 2029 and US$ 32 trillion by 2032.

Growth in 2025 was supported by improving fundraising conditions, rising LP allocations, and increasing demand for diversification, although capital flows are increasingly concentrated among large, established managers. At the same time, the industry is navigating a complex set of challenges, including fee compression, margin pressure, rising cost structures, and increasing competition, making scalable operating models and differentiation critical.

Despite this growth, structural pressures persist. These include liquidity constraints in private markets, delayed exits, valuation uncertainties, and growing regulatory scrutiny. Investor demands for transparency, real-time reporting, complex customisation, enhanced compliance and disclosures continue to increase operational complexity and costs.

A defining trend is the convergence of traditional and alternative asset management, with hybrid strategies bridging public and private markets. This is complemented by the rise of semi-liquid and evergreen fund structures, enabling periodic liquidity while expanding access to illiquid assets.

The democratisation of alternatives is accelerating rapidly. Broader access through wealth channels, retirement platforms, and semi-liquid vehicles is shifting the industry beyond its institutional roots. As a result, distribution has emerged as a core competitive battleground, with firms investing in scalable distribution platforms, partnerships, and digital engagement to capture retail and mass affluent flows.

Product innovation is also accelerating, particularly with the rise of active ETFs and alternative-like listed vehicles, which provide lower-cost, liquid access points and are reshaping how alternative strategies are delivered.

Technology is fundamentally redefining the basis of competition. While asset managers have long invested in technology often leading to complex, layered systems AI is now compressing traditional information advantages and enabling non-linear scalability, allowing firms to grow AUM without proportional increases in cost or headcount. AI is transforming investment research, client coverage, distribution, and operational metrics, potentially driving substantial cost efficiencies and significantly expanding coverage capabilities. This shift is forcing firms to redesign operating models, data infrastructure, and talent strategies, as AI-native players gain advantage. At the same time, tokenisation is emerging as a powerful and rapidly evolving force. By enabling fractional ownership, real-time settlement, and programmable assets, tokenisation is enhancing liquidity and accessibility in traditionally illiquid markets. Its convergence with regulatory clarity and digital infrastructure could reshape fund structures, distribution rails, and cross-border access, further accelerating the democratisation of alternatives. Outsourcing of core services like fund administration, accounting, reporting and others is expanding as managers seek scalability and cost efficiency. Co-sourcing models are gaining traction, while fund services providers are evolving into strategic, technology-enabled partners, delivering integrated solutions across data, operations, and compliance.

Looking ahead, the outlook remains robust but increasingly shaped by structural shifts. Alternatives are expected to capture a growing share of global AUM and revenues, driven by private market expansion, retailisation, and product innovation. Success will depend on building scalable distribution engines, deploying the right fund wrappers (e.g., ETFs, semi-liquid funds, tokenised vehicles), and adopting AI-first operating models. As technology and distribution redefine competitive dynamics, the industry is moving toward a more accessible, digitised, and structurally efficient future.

GLOBAL FUND ADMINISTRATION OVERVIEW

The global fund administration industry is entering a new phase of evolution, shaped by the rapid expansion of alternative assets and rising structural complexity across the investment lifecycle. With alternatives continue to gain growing share of global AUM, the fund administration market - estimated at US$13 - 15 billion and growing at double-digit rates - continues to expand, driven by outsourcing demand, product innovation, increasing regulatory intensity, and rising operational complexity.

A defining shift is the transition from service vendors to strategic infrastructure partners. LP expectations have risen sharply - majority of them prioritise self-service data access, with many demanding granular, real-time investment reporting. GPs, in turn, need scalable platforms to manage multi-asset, cross-border portfolios and increasingly complex structures. This dynamic is pushing asset managers to outsource not only back-office functions but also middle-office and data-handling, onboarding, analytical, and several such other capabilities.

Regulation continues to be one of the key drivers of outsourcing. Expanding requirements across AML/ KYC, financial crime compliance, ESG, and auditability, combined with regimes such as AIFMD II, are materially increasing the cost and complexity of in-house operations. As a result, outsourcing is no longer a cost lever but an operating necessity, with outsourced transaction volumes already rising significantly. Technology has become the primary differentiator. Administrators investing in AI, automation, and cloud-native platforms are enabling higher throughput, improved accuracy, and real-time reporting. This has shifted client priorities - pricing is becoming secondary, while technology integration, data quality, and scalability are now decisive factors. Administrators are using AI-driven automation and robotic process automation (RPA) to streamline core processes such as NAV calculations, reconciliations, and investor reporting often completing a large portion of workflows before human intervention, significantly reducing manual effort and errors. Agentic models are rolled out finding applications in data extraction and processing, converting unstructured documents such as capital calls, financial statements, and legal agreements into structured, usable data in near real time. Additionally, predictive analytics and anomaly detection help identify discrepancies, monitor risk, and improve compliance oversight. On the client side, AI-powered investor portals and chat-based interfaces are enabling real-time access to fund data, customised reporting, and enhanced investor experience. Collectively, these use cases are allowing fund administrators to handle increasing volumes and complexity while delivering faster, more transparent, and scalable services.

A major emerging force is tokenisation, which is reshaping fund servicing requirements. Tokenised fund AUM is projected to grow from US$90 billion in 2024 to US$715 billion by 2030, a staggering 40+% CAGR, according to one of the big four consulting firm estimates, while broader tokenised assets could scale into trillions. This will significantly increase transaction volumes, requiring administrators to build digital asset servicing, on-chain reporting, and real-time settlement capabilities.

The industry is also witnessing sustained consolidation. Fund administration remains highly attractive to investors, with global financial services M&A reaching over 2,200 deals in 2025, including 93 deals above US$1 billion, reflecting strong appetite for scale, technology, and recurring revenue models. Within fund services, firms with proprietary technology platforms, particularly those with global reach and technology-enabled delivery, continue to remain in great demand.

As we look forward, the fund services industry is shifting from a traditional service model to a technology- led, strategically embedded ecosystem within asset management. Structural drivers-rising allocations to alternatives, increasing regulatory complexity, and evolving LP/GP expectations-will continue to accelerate outsourcing, particularly across data, middle-office, and investor servicing functions. Administrators are no longer just operational partners but are becoming core enablers of scalability, transparency, and investor experience, as asset managers face rising costs and complexity in maintaining in-house capabilities. At the same time, Al-driven operating models and tokenisation are redefining the industrys economics - enabling nonlinear scalability, real-time reporting, and fundamentally new distribution and liquidity models for private assets. As consolidation continues, scale, technology depth, and global reach will become critical differentiators, with leading platforms embedding themselves deeply into client workflows. Looking ahead, the winners will be those that can re-architect around Al, build tokenisation- ready infrastructure, and deliver integrated, data- centric solutions, positioning fund administrators not as support functions but as indispensable partners driving growth, efficiency, and innovation in the evolving alternative investment ecosystem.

INDIAN INVESTMENT MANAGEMENT INDUSTRY OVERVIEW

The Indian investment management industry has entered a phase of measured consolidation following a decade of rapid structural expansion, with FY 2025-26 marking a transition from outsised growth to more sustainable momentum. While mutual fund assets under management (AUM) growth moderated to ~19% in FY 2025-26 (from ~35% in FY 2024-25), the resilience of domestic flows particularly systematic investment plans (SIPs), which crossed ~ 3.5 trillion annually underscores the strength of Indias evolving investment culture and long-term orientation of retail investors.

One of the defining characteristics of the current phase is the increasing maturity of retail participation, moving beyond episodic, market-driven inflows toward more disciplined, systematic allocation patterns. Even amid volatility and global uncertainty, domestic investors have continued to anchor markets, while participation is becoming more broad-based across geographies, driven by expansion into Tier-2 and Tier-3 cities and supported by digital distribution and fintech-led access. Importantly, the structural shift in household portfolios continues to deepen. As of March 2026, equities account for an estimated ~6 7% of total household financial assets, compared to ~1.9% a decade ago, reflecting a steady reallocation toward market-linked instruments.

Despite this near three-fold rise, India remains significantly underpenetrated relative to developed markets such as the U.S., where equities account for ~35% of household assets, highlighting substantial headroom for long-term growth.

The industry is also witnessing a broadening of product mix and investor preferences. While equities remain dominant, there is increasing adoption of hybrid strategies, passive funds, and alternatives, reflecting a shift toward diversification. Indias alternatives ecosystem now exceeding 23 trillion under alternative investment funds (AIF) and portfolio management services (PMS) continues to grow rapidly, supported by strong participation from institutional and affluent investors.

However, FY 2025-26 has also brought structural challenges into sharper focus. Market corrections, elevated valuations in certain segments, and geopolitical uncertainties led to more cautious incremental investments and uneven flow patterns across asset classes. Retail participation, while structurally strong, showed signs of tactical moderation, with investors becoming more sensitive to valuations, earnings visibility, and global macro risks. In parallel, the industry continues to face rising competitive intensity, fee pressures from passive products, and increasing regulatory and compliance expectations, all of which are reshaping profitability dynamics. The concentration of flows among select asset managers further accentuates the importance of scale, performance, brand, and distribution reach. Looking ahead, the long-term outlook remains compelling. The industry is expected to sustain double-digit growth, supported by favourable demographics, rising incomes, and continued financialisation of savings. The next phase of expansion will be driven by deeper retail penetration, innovation across product structures, and continued digital transformation of distribution and investor engagement models.

In summary, Indias investment management industry is evolving into a more resilient, diversified, and structurally anchored ecosystem, where future growth will be shaped not just by market cycles but by a sustained shift in household asset allocation, increasing investor sophistication, and the ability of industry participants to scale, innovate, and navigate an increasingly complex operating environment.

MUTUAL FUND INDUSTRY OVERVIEW

The Indian mutual fund industry demonstrated a resilient yet moderated growth trajectory in FY 2025-26, navigating a year marked by heightened market volatility and evolving investor preferences. The industrys average assets under management (AUM) reached an all-time high of 81.63 trillion in the last quarter of FY 2025-26, reflecting a 21.0% year-on-year increase, noticeably lower than the strong growth rates seen in preceding years.

This moderation was influenced by volatile equity markets, continuous foreign institutional investors (FII) outflows, and global geopolitical uncertainties, which impacted mark-to-market (MTM) performance. Unlike the FY 2024-25, where MTM gains materially contributed to AUM expansion, growth during the FY 2025-26 was increasingly anchored by domestic inflows, reinforcing the structural strength of the industry. Netflows during the year remained robust but more uneven across categories, with equity-oriented schemes, including hybrid schemes, continuing to attract investors with 5.01 trillion inflows, supported primarily by SIP contributions, while other segments such as debt funds witnessed episodic outflows of 0.41 trillion, largely driven by hardening of yields amid heightened macroeconomic uncertainty, dampening investors interest.

Retail investors continued to play a central role, with systematic investment plans (SIPs) sustaining momentum. Annual SIP contributions, during the year reached approximately 3.50 trillion (~20% YoY growth), with monthly inflows crossing 32,000 crore, reflecting continued investor commitment to disciplined, long-term investing despite market uncertainty. This consistent inflow stream has reinforced SIPs as a structural stabiliser, cushioning market volatility and enabling long-term capital formation even during periods of sharp corrections.

At the same time, the FY 2025-26 also witnessed change in investor allocation behaviour, particularly during the second half of the year. Elevated equity valuations, geopolitical uncertainties, unprecedented rise in precious metal prices and increased market volatility led to tactical portfolio rebalancing, with investors allocating incrementally toward safe-haven assets such as gold and silver. This was reflected in heightened inflows into gold ETFs during periods of uncertainty, indicating a shift toward diversification rather than a wholesale move away from equities.

Despite near-term moderation, the long-term growth potential remains significant. The industry structure itself is also evolving with several new asset management companies (AMCs) having launched in the last few years and multiple AMC licenses in the pipeline, reflecting the attractiveness of the Indian asset management market, driven by rising household financial savings and rapid digitisation of distribution channels. Despite strong growth over the last five years, Indias mutual fund penetration continues to be relatively low compared to global benchmarks, indicating substantial headroom for expansion, supported by favourable demographics, rising financial awareness, and continued financialisation of savings.

ISSUER SOLUTIONS SECTOR OVERVIEW

Indias capital markets during the FY 2025-26 experienced a phase of consolidation following the strong expansion seen in prior years, as global uncertainties and domestic market corrections tempered the pace of growth. After crossing the US$ 5.0 trillion market capitalisation milestone during the previous year, the markets in the FY 2025-26 witnessed periods of volatility and valuation realignment, with benchmark indices facing corrections amid persistent foreign institutional investor (FII) outflows, geopolitical uncertainty, disruptions in energy supply-chain infrastructure, and weakening of Indian currency.

Despite these headwinds, the underlying strength of domestic participation remained intact. Domestic institutional investors (DIIs), along with sustained retail flows through systematic investment channels, continued to provide stability, offsetting the impact of global capital movements. This resilience highlights the increasing depth of Indias capital markets and the growing role of domestic capital in shaping market direction. Retail individual demat accounts in India continues to scale higher with the overall count increasing to 225 million by March 2026, an increase of 16.9% over March 2025.

The primary market landscape during the FY 2025-26, while still active, normalised after the record-breaking issuance levels witnessed in the previous year. The year had a healthy yet moderated primary market environment, with approximately 250+ primary issuances (IPOs), including 70+ mainboard IPOs and 180+ SME IPOs, raising over 1.20 trillion, lower than the record 1.82 trillion seen in FY 2024-25. The mainboard segment continued to dominate in value terms, while SME issuances remained strong in volume, reflecting sustained participation from emerging enterprises.

Despite this normalisation, IPO activity remains robust by historical standards, underscoring the growing maturity, depth, and resilience of Indias capital markets.

Demographically, the market continues to be driven by younger, digitally native investors, with participation from sub-30 age cohorts remaining a dominant force.

This shift is reshaping market engagement patterns, with a strong bias toward technology-enabled platforms, real-time access to information, and self-directed investing. Despite the progress achieved, structural under penetration persists. Retail participation in capital markets, when measured relative to population, remains significantly lower than global benchmarks, indicating substantial headroom for long-term expansion. This gap, combined with rising financial literacy, increasing formalisation of the economy, and supportive regulatory initiatives, presents a strong foundation for sustained growth, reinforcing Indias position as a structurally strong and evolving capital market with significant long-term potential.

ALTERNATIVE INVESTMENT FUNDS (AIF), PORTFOLIO MANAGEMENT SERVICES (PMS), AND PRIVATE WEALTH MANAGEMENT (PWM): INDUSTRY OVERVIEW

The alternative investment landscape in India including AIFs, PMS, and private wealth management (PWM) is entering a phase of accelerated scale and institutionalization, driven by growing investor sophistication, search for differentiated returns, and expanding distribution ecosystems. These segments are increasingly becoming integral to portfolio construction for high-net-worth (HNI) and ultra-HNI investors, offering access to bespoke, strategy-led investment opportunities beyond traditional public markets.

Alternative Investment Funds (AIFs) continued to demonstrate strong structural momentum, supported by sustained capital commitments and increasing participation from both domestic and global investors.

The number of AIFs and total commitments have continued to expand at a robust pace, reflecting the deepening acceptance of private market investing as a core allocation strategy. As of March 2026, the number of registered AIFs increased by 21.6% to 1,879 and total commitments raised stood at 16.94 trillion, as of March 31, 2026, up by 25.6% over March 2025. The segments ability to generate risk-adjusted alpha across cycles, particularly in private equity, private credit, and real assets, has reinforced its position as a preferred vehicle for long-term wealth creation. A notable trend emerging is the broadening of investor base beyond traditional ultra-HNI segments, with emerging affluent investors gradually increasing exposure to alternatives through feeder structures, wealth platforms, and advisory-led distribution. At the same time, fund managers are evolving their strategies - moving beyond growth equity toward diversified themes such as private credit, special situations, infrastructure, and sector-focused funds, responding to changing market opportunities.

Indias growing prominence as a global private capital destination continues to support the AIF ecosystem. Strong macroeconomic fundamentals, an expanding startup and mid-market ecosystem, and increasing formalisation of the economy are creating a large and diverse opportunity set for fund deployment. In addition, the continued scaling of Indias startup and innovation landscape is generating a steady pipeline of investable opportunities across early-stage, growth, and late-stage segments. Fundraising cycles have become more selective, with investors placing greater emphasis on track record, governance, and distribution strength. Capital deployment timelines have adjusted in response to valuation recalibration and exit environment uncertainties, reinforcing the importance of disciplined investment approaches. The segment is expected to outpace traditional asset classes, driven by increasing allocation from domestic capital pools, rising global investor interest, and continued product innovation.

As regulatory frameworks evolve and technology enables wider access, AIFs and related alternative products are expected to play a significantly larger role in Indias overall investment ecosystem.

The portfolio management services (PMS) funds segment in India continues to evolve as a high-conviction, customised investment avenue, gaining increasing traction among affluent and ultra-affluent investors. The industry has sustained steady AUM expansion, supported by strong participation from HNI and ultra-HNI segments, although the pace of growth has moderated compared to earlier years in line with broader market trends. As of March 31, 2026, the AUM has grown to 41.42 trillion, up by 9.6% year-on-year, reflecting continued investor confidence despite market volatility. The investor base has also expanded to 215,950, an increase of 8.3% year-on-year lakh mark, driven by increasing awareness, better access through digital and wealth platforms, and rising demand for differentiated strategies. Besides HNIs and UHNIs, affluent investors are also increasingly choosing self-managed equity exposure toward discretionary mandates managed by SEBI-registered portfolio managers, seeking professional expertise, disciplined execution, and downside risk management. This trend reflects a broader structural transition in wealth allocation - from physical and opportunistic financial assets to advisory-led, professionally managed portfolios. At the same time, PMS portfolios are witnessing greater diversification in strategy design, including thematic investing, sector-focused allocations, and integration of alternative and hybrid exposures. Managers are also increasingly incorporating data-driven decision-making, advanced analytics, and technology-led reporting frameworks, enhancing transparency and investor engagement.

The industry has witnessed a steady rise in the number of SEBI registered portfolio managers reaching 511, as on March 31, 2026, vs. 497, as on March 31, 2025, and nearly doubled since 2020, reflecting growing investor confidence. However, market volatility and valuation concerns have led to more measured client onboarding and allocation decisions, while performance dispersion among PMS strategies has reinforced the importance of track record and manager credibility. In addition, regulatory oversight and rising expectations around disclosure and governance are driving greater accountability within the segment. Looking ahead, the outlook for PMS remains positive, underpinned by rising wealth creation, growing HNI population, and increasing demand for personalised investment solutions. As Indias wealth management ecosystem expands, PMS is expected to play a critical role at the upper end of the investment spectrum, bridging the gap between traditional public market products and private market opportunities, shaped by the ability of managers to deliver consistent alpha, leverage technology, and align closely with evolving investor expectations.

The private wealth management (PWM) industry in

India is poised for accelerated expansion and structural evolution, driven by rapid expansion in the affluent class population, increasing financialisation of savings, rising awareness of market-linked investments, and increasing sophistication of investor needs. India continues to rank among the fastest-growing wealth markets globally, with the number of high-net-worth individuals (HNIs) expanding steadily, supported by entrepreneurship, equity market participation, and inter generational wealth transfers. Industry estimates suggest that addressable wealth in India currently exceeding 100 trillion is expected to more than double over the next five years, growing at mid-teen CAGR, reflecting strong long-term demand for organised wealth management solutions. A key structural shift underway is the broadening of the wealth base beyond ultra-HNIs to mass affluent segments, particularly across tier-2 and tier-3 cities. This expansion is being enabled by digital platforms, rising financial literacy, and increasing participation in capital markets, creating a much wider addressable client base for wealth managers. At the same time, client expectations are evolving - from product-led advisory to holistic, goal-based wealth solutions, including portfolio allocation, succession planning, tax optimisation, and access to private and alternative investments. Technology is emerging as a critical differentiator in this landscape.

Wealth management firms are increasingly investing in digital-first advisory platforms, AI-driven analytics, and integrated client engagement tools to deliver personalised experiences at scale. Digital enablement is also helping firms deepen client insights, enhance transparency, and improve operational efficiency, while ensuring compliance with tightening regulatory frameworks around data protection and investor suitability. Traditional private banks, asset management companies, fintech platforms, and global wealth managers are all expanding their presence, requiring major differentiated offerings. Firms that can combine advisory depth, product breadth (including alternatives), and technology-led delivery models will be best positioned to capture market share.

NATIONAL PENSION SCHEME (NPS) OVERVIEW

The National Pension System (NPS) continues to strengthen its position as a key pillar of Indias long-term retirement savings framework, with the FY 2025-26 witnessing sustained momentum in both subscriber growth and assets. Growth has been driven by increasing awareness around retirement planning, rising formalisation of the workforce, and continued policy support, reinforcing NPS as a compelling market-linked retirement solution. The total number of subscribers base increased to 18.44 million, as on March 31, 2026, delivering a growth of 11.7% year-on-year and the industry AUM grew to 15.95 trillion, as on March 31, 2026, registering a growth of 14.1% year-on-year, supported by consistent contributions and stable long-term returns, while the subscriber base has continued to expand steadily across government, corporate, and individual segments. A notable trend is the gradual increase in participation from private sector employees, aided by enhanced employer contributions, up to 14%, and widening corporate adoption of NPS as part of the employee benefit programs. Emerging initiatives such as NPS Vatsalya, targeting minors, are expanding the ecosystem by introducing early-stage retirement savings, positioning NPS as a lifecycle product. Going forward, corporates are expected to play a pivotal role by integrating NPS into compensation structures, enhancing employee awareness, and promoting long-term savings discipline.

COMPANY OVERVIEW About the company

KFin Technologies Limited (KFintech or Our Company) is a leading technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem including asset managers and corporate issuers across asset classes in India and provide comprehensive fund services solutions including fund administration, transfer agency, fund accounting, data analytics, digital onboarding, transaction origination and processing, and other tailor made digital solutions for alternate investments, mutual funds, private market funds, digital assets, global pension funds, unit trusts, insurance investments, and private retirement schemes to asset managers across 18+ jurisdictions including the United States, the United Kingdom, Middle East, Singapore, Hongkong, Australia,Malaysia, Mauritius, and China. Our Company services 986 global asset managers across 18+ countries, managing 1,699 funds and over US$ 350 billion assets under management, as on March 31, 2026. In India, KFintech is the largest investor solutions provider to Indian mutual funds, based on number of AMCs serviced, the largest issuer solutions provider based on number of clients serviced, the largest fund administrator based on number of AIFs serviced, and the second largest Central Recordkeeping Agency (CRA) for the National Pension System in India, as on March 31, 2026. We are the only investor and issuer solutions provider in India that offers services to asset managers such as mutual funds, alternative investment funds, wealth managers and pension as well as corporate issuers.

KFintech is redefining the standards of investment operations by bringing transparency, scalability, and intelligence to an industry traditionally constrained by fragmented systems and opaque processes. At the core of our offering is a highly secure, enterprise-grade, multi-tenant cloud and AI-native platform that is purpose-built to simplify and unify investment accounting, investor servicing, and analytics across the value chain. Our integrated suite of software products and technology-enabled services enables seamless orchestration of front-, middle-, and back-office functions - allowing clients to transition from legacy, siloed infrastructures to modern, cloud and AI-native ecosystems. This transformation drives significant operational efficiency, automation, and real-time visibility, empowering asset managers to focus on core alpha-generating activities such as investment strategy and portfolio construction. Our solutions are architected for global scale and complexity, offering multi-asset, multi-currency, multi-jurisdiction, and multi-lingual capabilities across all investment strategies including tokenised and digital asset classes. Backed by deep domain expertise and decades of operating experience, we deliver hyperscale transaction processing, advanced data analytics, and next-generation platform solutions, ensuring resilience, security, and regulatory compliance across markets. Many of our offerings are industry-first innovations, designed to enable clients to achieve agility, scalability, and cost efficiency in an increasingly dynamic investment landscape. Over the years, this capability has positioned KFintech as a trusted technology partner to leading global asset managers and financial institutions, with a proven track record of delivering high-impact transformation.

In parallel, we continue to pursue strategic, value-accretive acquisitions that enhance our capabilities, expand market access, and strengthen our competitive positioning. Our disciplined approach to integration-leveraging platform synergies, operational scale, and domain expertise has consistently enabled us to unlock value and accelerate growth from acquired businesses.

Acquired Business	Acquisition Date	Rationale
Captive unit of registrar and transfer agency (RTA) business from one of the large German banks	2016	Entry into international fund services business with access to clients in Malaysia and Philippines
RTA business of Sundaram BNP Fund Services	August 2019	Acquired two RTA customers and 20 AIFs customers
Hexagram Fintech Private Limited (\u201cHexagram\u201d)	February 2022	Added platform expertise in fund accounting and reconciliation
WebileApps (India) Private Limited (\u201cWebileApp\u201d)	April 2023	Added deep expertise in building mobility solutions and other UI/UX solutions for players in the BFSI sector and beyond
Ascent Fund Services (Singapore) Pte. Ltd. (\u201cAscent\u201d)	October 2025	Extended KFintech\u2019s fund administration capability to global alternative asset managers across 18+ jurisdictions

OUR PRODUCTS AND SERVICES

At KFintech, we provide a comprehensive, end-to-end suite of platforms and solutions designed for global asset managers and corporate issuers, covering the entire investment lifecycle. Powered by robust, technology-led platforms, our offerings drive operational efficiency, superior investor experience, and strong regulatory compliance. Our diversified solution portfolio is built for resilience helping clients navigate market cycles and business volatility, while delivering consistent, stable, and sustainable performance.

		Investor solutions			Issuer solutions
	Domestic mutual fund	International asset managers	Global pension services	Global Alternatives, Wealth management, and Portfolio management solutions
Front-End	Account Setup, Transaction Origination, Channel Management, Customer Communication Management	Fund Setup, Transaction Origination, Investor Digital Onboarding	Account Setup, Transaction Origination, Investor and Subscriber Digital Onboarding	Fund Setup, Investor Digital Onboarding, Wealth Management Platform for Relationship Managers	Folio Creation and Maintenance
Middle Office	Fund Administration Fund Accounting Transaction Processing	Fund Administration Fund Accounting, NAV calculation,	Fund Administration, Fund Accounting, NAV calculation, Order	Fund Administration, Fund Accounting, FPO, etc.	Transaction Processing for IPO,
	Unit, Allocation KYC, Redemption Brokerage, Calculations Payment Processing, Fund Accounting Reconciliation	Transaction Processing Unit Allocation, KYC and KYW Screening, Redemption, Brokerage Calculations, Payment Processing	Transaction Processing, KYC, Unit Allocation, Redemption, Reconciliation	Management, Transaction Processing, Unit Allocation, Redemption, Brokerage Calculations, Reconciliation	Corporate Action Processing Folio updates Dividend/Interest Processing
Back Office	Compliance/Regulatory Reporting, Recordkeeping, MIS/Decision Support	Compliance/Regulatory Reporting, Recordkeeping, MIS/Decision Support	Compliance/ Regulatory Reporting, Recordkeeping	Compliance/Regulatory Reporting, Recordkeeping, Wealth Management Operations	Compliance/ Regulatory Reporting Recordkeeping MIS/ Decision Support
Value Added Solutions (VAS)	Virtual Branch, Distributor Platform, Investor Platform, IT Infra and Web Hosting, Data Analytics, Data Lake, AML/PML Check	Online Tx Platforms, Website and Apps, Other Platform Solutions, Data Analytics, Data Lake, AML/PML Check, FATCA CRS, Book Keeping, Corporate Solutions	-	Digital Onboarding, Revenue Assurance, Data Analytics, Data Lake, AML/PML Check, IT Infra and Web Hosting, Performance Attribution Analysis	Investor relations, e-AGM, e-Voting, e-Vault, Guardian Insider Trading Platform, InPro AML/ PML check, Other Platform Solutions

OUR REVENUE MODEL

Our revenue model is closely aligned with client value creation, linking fees to performance across business segments. This drives a high proportion of recurring revenues, providing stability and predictability. Supported by a diversified portfolio across investor solutions, issuer services, alternatives, and pensions, we deliver consistent growth while capturing multiple revenue streams.

Business Segment Revenue Model

Domestic Mutual Fund Investor Solutions and International Investor Solutions	% of AUM; Platform fee for licensed sales; Fee for value-added services
Issuer Solutions	Number of folios; Fee for processing corporate actions; Fee for value- added services
AIF, PMS, and PWM	% of AUM; Platform fee for licensed sales; Fee for value-added services
Global Pension Services	Fixed account opening charges; Annual maintenance fees; Fee per transaction; Platform fee for licensed sales

BUSINESS-WISE OVERVIEW

Our Company functions under the following diversified segments:

Domestic Mutual Fund Investor Solutions

We are Indias largest investor solutions provider for domestic mutual funds, serving to 31 out of 61 asset management companies (AMCs) as of March 31, 2026. We operate as a registrar and transfer agent (RTA) to the mutual fund companies in India. In addition, Our Company delivers tailored, innovative digital solutions to asset management companies, enabling them to elevate client experience while optimising operational efficiency and cost structures. Our platforms and solutions operate at significant scale, supported by long-term, deeply embedded client relationships and a high proportion of recurring revenue streams, providing strong visibility and resilience. We are well positioned to benefit from Indias structural shift toward financialisation of savings, increasing retail participation, and rising adoption of SIP-based investments. We continue to have the best winning track record in the industry, winning 23 of the last 41 new AMC entrants, including six of the last nine new entrants. Our clients continue to remain equity focused and fast-growing AMCs in India. Our clients command a 32.4% share of the overall industry AAUM and 32.1% in equity AAUM, with equities accounting for 56.7% of their overall assets. Notably, they hold 36.4% share in monthly SIP inflows, as of March 2026, a key forward indicator of sustained growth in equity AAUM. Our digital solutions are gaining strong traction, driving new mandates from existing AMC clients while also winning engagements from the competition clients.

International Investor Solutions

Our Company provides a globally scalable, technology-led fund administration platform serving 499 clients, managing 927 funds and US$ 45.70 billion in AUM across 18+ jurisdictions as of March 31, 2026, including key financial hubs such as the United States, Singapore, Hong Kong, the United Kingdom, and GIFT City (India). We deliver fund administration solutions to 512 clients and transfer agency services to 80 clients, reflecting strong traction across outsourced and hybrid operating models. Our proprietary, cloud-native platform mPower, licensed to 12 global asset managers, enables institutional-grade in-house operations with high scalability, control, and efficiency. A key strategic milestone during the FY 2025-26 was the acquisition of a 51% controlling stake in Ascent Fund Services (Singapore) for US$34.68 million, with a clear pathway to full ownership over the next five years. This acquisition provides immediate scale, regulatory access, and expanded global reach, supported by Ascents established presence, strong client relationships, and proven execution capabilities. Importantly, this acquisition has significantly accelerated our international revenue mix, with its contribution increasing from 4.4% in the FY 2024-25 to ~18% in the FY 2025-26 (annualised) transforming our global positioning and diversifying our revenue base.

Together, KFintech and Ascent form a next-generation global fund administration platform, combining deep domain expertise, advanced technology infrastructure, and a strong balance sheet - positioning us to scale rapidly, deepen global presence, and capture long-term growth opportunities in the evolving alternatives and asset management ecosystem.

Issuer Solutions

KFintech is Indias largest issuer solutions provider, serving a diversified base of 10,603 corporate clients, including over 700 listed entities, as of March 31, 2026. We provide an end-to-end, technology-driven suite of issuer services across the entire lifecycle of securities, spanning pre-issue, post-issue, and ongoing compliance and investor servicing requirements.

Our comprehensive capabilities include IPO registry services, folio creation and maintenance, corporate actions management, investor servicing and relations, e-AGM and e-voting platforms, AML/PML compliance, insider trading governance, and unclaimed shares management. These mission-critical services position us as a core infrastructure partner to corporate issuers, enabling regulatory compliance, operational efficiency, and seamless investor engagement at scale. As on March 31, 2026, we managed 166.88 million investor folios, underscoring our unmatched scale and deep integration within Indias capital markets ecosystem.

Our leadership is further reinforced by a strong presence across NSE500 companies, where we rank among the top providers based on client base, investor folio coverage, and associated market capitalisation. During the FY 2025-26, we strengthened our market position by managing 44 mainboard IPOs, translating to a 38.3% market share by volume and 41.2% by issue size. This reflects our continued ability to win marquee mandates and execute large, complex transactions with reliability and efficiency. Backed by robust digital infrastructure, high processing scale, and trusted client relationships, we continue to play a pivotal role in supporting Indias expanding capital markets and the accelerating financialisation of savings.

OTHER INVESTOR SOLUTIONS Domestic AIF Investor Solutions

KFintech is a market leader in investor servicing for Indias alternative investment ecosystem, with a dominant presence across AIFs and expanding capabilities in PMS and private wealth management. We are among the few platforms in India offering a fully integrated, cloud- and AI-native technology stack tailored to the complex and evolving needs of alternative asset managers and wealth managers. As of March 31, 2026, we service 741 AIF funds across 431 asset managers, representing an estimated 38.1% market share, with assets under administration of 1.73 trillion. This scaled presence positions us at the forefront of a high-growth segment driven by increasing allocation to alternatives and rising investor sophistication.

Our proprietary platform mPower continues to gain strong institutional adoption, with 25 clients leveraging the platform, including seven of the 10 pension fund managers in India and eight AMCs, including five AMCs where KFintech is not the RTA. This reflects our ability to expand wallet share while penetrating new client segments through technology-led offerings. In the private wealth segment, our platform mPowerWealth services six marquee clients, including multiple transitions from competing providers - underscoring our growing credibility and traction in a rapidly expanding wealth management market. We further enhance client capabilities through our state-of-the-art proprietary order management solutions, enabling seamless, real-time trade execution and operational agility. Collectively, our integrated platforms, strong market share, and expanding client base position KFintech as a strategic technology partner driving the next phase of growth across alternatives, wealth, and institutional asset management in India.

National Pension System (NPS) Services

We are the second-largest CRA in India, playing a critical role in enabling the countrys pension infrastructure.

We deliver end-to-end retirement solutions, including PRAN issuance, recordkeeping, administration, and investor servicing - anchored on a robust, technology-led platform that seamlessly connects all stakeholders within the pension ecosystem. Our differentiated approach lies in providing integrated, scalable solutions to Points of Presence (POPs), corporates, and government entities - driving subscriber acquisition and enhancing operational efficiency. We support the All Citizen Model, corporate subscribers, and state government segments, with tailored solutions designed for each category.

Backed by a unified digital platform and deep domain expertise, we continue to gain market share through consistent onboarding of new subscribers. As of March 31, 2026, we service 2.19 million pension accounts, representing an 11.9% market share, reflecting our growing relevance in a structurally underpenetrated and high-growth retirement market in India.

FINANCIAL PERFORMANCE

The FY 2025-26 marked a pivotal and transformative year for KFintech, as we significantly expanded our global footprint now operating across 18+ jurisdictions- in line with our strategic ambition to emerge as a leading global fund administration platform from India. In an environment characterised by global uncertainty and market volatility, we continued to deliver consistent, profitable growth, underpinned by strong deal momentum, diversified revenue expansion across business segments, and disciplined operational execution. Our performance reflects the strength of our scalable, technology-led platform, robust client relationships, and our ability to capture opportunities across both domestic and international markets.

REVENUE HIGHLIGHTS (Rs. IN MILLION)

Consolidated Revenue Break up	FY 2025-26	FY 2024-25	% YoY
Domestic Mutual Fund Investor Solutions	8,622.27	7,799.86	10.54%
International Investor Solutions	1,587.16	476.62	233.00%
Issuer Solutions	1,712.29	1,548.62	10.57%
Others Investor Solutions	1,036.91	815.16	27.20%
AIF, PMS, PWM Solutions	739.84	580.57	27.43%
NPS Solutions	163.79	110.11	48.75%
WebileApp and Others	133.28	124.48	7.07%
Global Business Solutions*	56.23	267.26	-78.96%
Revenue from operations	13,014.93	10,907.52	19.32%

* Global Business Solutions (GBS) is a non-core business for Our Company and has been strategically scaled down.

During the year, the revenue from operations grew by 19.32% year-on-year to 13,014.93 million, driven by growth witnessed across all our core business segments. Domestic mutual fund investor solutions revenue grew 10.54% year-on-year to 8,622.27 million, supported by robust expansion in client assets, with overall AUM and equity-oriented AUM increasing by 19.57% and 17.15% year-on-year, respectively. However, a volatile global environment and sustained FPI outflows moderated mark-to-market (MTM) gains to 6.10% year-on-year, significantly lower than the elevated growth witnessed in the previous year, impacting AUM-linked revenue growth. Despite this, equity net inflows remained resilient, growing 11.06% year-on-year, driven by continued retail participation through SIPs, partially offsetting weaker MTM gains. During the year, heightened geopolitical uncertainties led to a shift in asset allocation towards passive and precious metal-linked products, with ETF AUM growing by 25.89% year-on-year and equity mix moderating to 56.66%, reflecting a gradual rebalancing of portfolios, though we do not foresee it as a structural change in allocation. AAUM-linked fee income, representing 59.96% of our revenue from operations, grew 10.19% year-on-year to 7,804.16 million, providing strong revenue stability. Additionally, value-added solutions revenue delivered a robust 21.14% year-on-year growth to 551.40 million, accounting for 4.24% of the overall revenue from operations, reflecting increasing client adoption, although digital deal momentum moderated in the latter half amid market volatility.

International investor solutions revenue delivered exceptional growth of 233.00% year-on-year to 1,587.16 million, driven by the consolidation of Ascents performance post-acquisition. Importantly, even on a standalone basis, our international business grew a strong 24.36% year-on-year, underscoring sustained momentum and increasing global acceptance of our platform.

Ascent contributed 994.45 million in revenue during the second half of the financial year, reflecting a robust 27.29% year-on-year growth, alongside continued strong deal traction. During the year, KFintech secured 33 new mandates across South-East Asia and GIFT City, while Ascent added 174 new funds, reinforcing our combined ability to win and scale across emerging global asset managers.

The acquisition has been transformational, with international investor solutions contributing 12.19% of total revenue (18.79% on an annualised basis), significantly enhancing our geographic diversification.

We are now well-positioned to scale international revenues to 25 30% of total revenue over the next 4 5 years, driven by strong deal pipelines, expanding global footprint, and integrated platform capabilities.

Issuer Solutions delivered resilient growth of 10.57% year-on-year to 1,712.29 million, supported by a steady expansion in investor base, with average number of investor folios growing by 10.27% year-on-year to 166.88 million. Growth was underpinned by strong performance in folio-based fee income, up by 12.64% year-on-year to 772.23 million and continued traction in value-added services, up by 10.51% year-on-year to 183.98 million, reflecting increasing client engagement and platform adoption. Performance during the year was moderated by market volatility and a slowdown in primary issuances in the second half, which impacted folio additions and corporate action volumes. Consequently, corporate action fee income grew at a moderate 5.66% year-on-year to 583.28 million, reflecting softer market activity. Though the average investor folios delivered double digit growth for the full year, unwinding during the second half led to barely 1.60% year-on-year growth as on March 31, 2026, on a point-to-point basis. Despite near-term headwinds, the segment remains structurally strong, given under penetration of Indian households exposure to direct equity, relative to global average and other major economies. As market conditions stabilise, primary issuance activity and corporate actions are expected to normalise, supporting revenue acceleration. In parallel, the ongoing financialisation of household savings and rising retail participation in equities are expected to drive sustained growth in investor folios. Leveraging our market leadership, scale advantages, and integrated technology platform, we remain well positioned to capture long-term growth opportunities and strengthen our position as the preferred partner for both listed and unlisted corporates. Our younger businesses continue to grow at a faster pace than our traditional businesses, highlighting our ability to capture high-growth opportunities across emerging investment ecosystems, while reinforcing our position as a technology-led, diversified platform driving scalable and sustainable growth. The AIF, PMS, and PWM segment emerged as a key growth engine, delivering a robust 27.43% year-on-year increase in revenue to 739.84 million, driven by a combination of strong deal momentum and sustained expansion in client asset bases. This growth reflects our ability to consistently win high-quality mandates and deepen relationships with existing clients, supported by a comprehensive, technology-led product-suite tailored to the evolving needs of alternative and wealth managers. We continue to strengthen our leadership position in this fast-growing segment, leveraging our integrated platforms, deep domain expertise, and relentless focus on delivery excellence. The NPS solutions business also delivered standout performance, with revenues growing 48.75% year-on-year to 163.79 million, supported by strong subscriber additions. Notably, we are onboarding new subscribers at ~3x the industry pace, steadily expanding our market share in a structurally underpenetrated and high-growth retirement ecosystem. In our digital mobility solutions business (WebileApp), revenue grew 7.07% year-on-year to 133.28 million. While growth was tempered by delayed closures of large-ticket deals, this represents a timing shift rather than demand erosion, with a strong pipeline expected to convert in the coming periods.

OPERATING EXPENSES (Rs. IN MILLION)

Expense Category	FY 2025\u201326	FY 2024\u201325	% YoY
Employee Benefits Expenses	5,250.77	4,032.90	30.20%
Other Operating Expenses	2,467.48	2,084.60	18.37%
Total Operating Expenses	7,718.25	6,117.50	26.17%

Operating expenses increased by 26.17% year-on-year to 7,718.25 million, primarily driven by the consolidation of our Singapore subsidiary. On an underlying basis, excluding this impact, expense growth remained disciplined at 11.01% year-on-year, reflecting our focus on cost efficiency alongside business expansion. Employee benefit expenses rose 30.20% year-on-year to 5,250.77 million (13.10% excluding Ascent), driven by annual increments, performance-linked incentives, targeted hiring to support new client onboarding, and higher replacement costs in a competitive talent market. Despite continued investment in talent, we continue to remain prudent in our people strategy, actively leveraging automation and technology to optimise manual processes while selectively adding specialised domain expertise. Our average headcount during the FY 2025-26 stood at 6,667 employees (including 308 employees under Ascent), compared to 6,135 in the previous year. Other operating expenses increased 18.37% year-on-year to 2,467.48 million (6.98% excluding Ascent), largely due to strategic investments in technology infrastructure, including cloud, cybersecurity, and data centre capabilities, alongside business development initiatives and pass-through transaction processing costs aligned with rising transaction volumes. Overall, our cost structure reflects a balanced approach - investing in scalable technology, talent, and growth initiatives, while maintaining strong operating discipline to support long-term profitability and margin resilience.

PROFITABILITY AND MARGINS

(Rs. IN MILLION)

	FY 2025\u201326	FY 2024\u201325	% YoY
EBITDA	5,296.68	4,790.02	10.58%
EBITDA Margin	40.70%	43.91%	-322 bps
Profit After Tax	3,437.12	3,326.25	3.33%
PAT Margin	26.41%	30.50%	-409 bps

EBITDA increased 10.58% year-on-year, driven by underlying revenue growth; however, margins declined by 322 basis points, primarily due to the consolidation impact of Ascent, softer MTM gains, and an evolving asset mix in the domestic mutual fund business. Depreciation, impairment and amortisation expenses rose 33.83% year-on-year to 862.56 million, reflecting continued investment in platform capabilities, including 1,103.95 million of capital expenditure during the year, along with amortisation of acquisition-related intangibles of 61.11 million and depreciation impact from Ascent of 53.60 million. Finance costs remained stable, while other income increased 12.40% year-on-year to 424.01 million, supported by higher treasury income, partially offset by capital deployment of 3,076.98 million towards the Ascent acquisition. The Company continues to demonstrate strong cash generation, converting 51.0% of EBITDA into free cash flows. Profit after tax increased 3.33% year-on-year, with margins moderating by 409 basis points to 26.41%, impacted by higher depreciation, asset mix changes, and a one-time exceptional cost of 125.94 million related to new labour code provisions. Overall, this performance reflects a deliberate and strategic investment phase scaling global capabilities, strengthening technology infrastructure, and enhancing platform depth - to drive sustainable, high-quality growth over the medium to long term.

BALANCE SHEET

(Rs. IN MILLION)

Particulars	As on 31 March 2026	As on 31 March 2025	% YoY
Non-Current Assets	18,740.39	8,573.96	118.57%
Current Assets	8,996.48	8,934.59	0.69%
Total Assets	27,736.87	17,508.55	58.42%
Total Equity	16,730.66	14,078.30	18.84%
Non-Current Liability	8,283.52	1,720.20	381.54%
Current Liability	2,722.69	1,710.05	59.22%
Total Liability	11,006.21	3,430.25	220.86%
Shareholders\u2019 Equity	16,730.66	14,078.30	18.84%
Total Equity & Liability	27,736.87	17,508.55	58.42%

Total assets increased by 58.42% year-on-year to 27,736.87 million as of 31 March 2026, primarily driven by strategic investments in inorganic growth initiatives and the consolidation of acquired businesses during the year.

On October 13, 2025, the Company acquired a 51.00% controlling stake in Ascent Fund Services (Singapore) Pte. Ltd. for a purchase consideration of 3,076.98 million (US$ 34.68 million), and became the sole promoter, with the remaining 49% stake to be acquired in three equal tranches following the twelve months ending July 2028, 2029, and 2030 respectively through simultaneous call and put options, based on defined adjusted EBITDA milestones achievement. As a result of the acquisition, net identifiable assets of 1,620.01 million were recognised, while the excess purchase consideration over the fair value of net assets acquired resulted in goodwill of 7,248.37 million. Consequently, as of 31 March 2026, the non-current assets increased by 118.57% year-on-year or 10,166.43 million, driven by the consolidation effect of Ascent Fund Services. During the year, the Company incurred a capital expenditure of 1,103.95 million, an increase of 17.78% year-on-year, attributed mainly towards the technology investments. Capital expenditure as a percentage of revenue remained stable at around 8.5%. Current assets remained broadly stable at 8,996.48 million, supported by disciplined working capital management and healthy cash balances. Days Sales Outstanding (DSO) increased to 65 days as of 31 March 2026 compared to 58 days as of 31 March 2025, primarily driven by the impact of consolidation of Ascents financial for six months, adjusted for the same, DSO would have been stable at 63 days.

Total liabilities increased by 220.86% year-on-year to 11,006.21 million, reflecting the effect of consolidation of Ascent during the year. Non-current liability increased by 381.54% to 8,283.52 million, driven mainly due to the recognition of acquisition-related financial liabilities amounting to 6,306.58 million, arising from business combinations on account of full consolidation of Ascent Fund Services including the recognition of deferred and contingent consideration of 6,187.57 million, using the anticipated acquisition method. Any subsequent change in fair value of the deferred and contingent consideration will be adjusted against the Other Equity. Current liabilities increased by 59.22% to 2,722.69 million, primarily on account of consolidation of Ascents current liabilities of 579.31 million, driven by increase in current tax liabilities (net) by 251.29 million, owing to higher profitability and year-end staff obligations of 90.05 million.

Shareholders equity increased by 18.84% year-on-year to 16,730.66 million, supported by strong profitability during the year and corresponding increase in retained earnings, with other equity rising by 2,647.95 million. For FY 2025-26 the company has declared a dividend of 12.00 per share, compared to 7.50 per share in the previous financial year, representing a 60% increase year on year. Our balance sheet continues to remain robust, underpinned by a strong liquidity position, healthy capital structure, and disciplined capital

CASH FLOW

(Rs. IN MILLION)

Particulars	As on 31 March 2026	As on 31 March 2025	% YoY
Cash flow from operating activity	3,696.00	3,989.02	-7.35%
Free-cash-flow-to-the-firm (FCFF)	2,702.78	3,213.08	-18.94%
FCFF % to EBIDTA	51.02%	67.08%

The Company continued to generate healthy operating cash flows, with net cash generated from the operating activities of 3,696.00 million during FY 2025-26, declined by 7.35% year-on-year on account of moderate growth in operating margins, impacted by change in asset-mix and lower MTM gains in the domestic mutual fund investor solutions segment impacting revenue growth

Our FCFF continues to remain strong and and stood at 2,702.78 million, representing 51.02% of EBITDA.

BUSINESS OUTLOOK

Looking ahead, our strategy is focused on building a globally diversified, scalable, and high-margin platform, with strong execution momentum already evident. Backed by the Ascent acquisition, we expect international investor solutions to scale to 25-30% of total revenue over the next 4 5 years, delivering 25 30% CAGR and significantly enhancing our global footprint. In India, we continue to strengthen our leadership position, supported by structural tailwinds such as financialisation of savings and rising retail participation.

Our core businesses are well positioned to deliver 15-17% CAGR, while high-growth segments including AIF, PMS, PWM, NPS, and digital solutions are expected to consistently outperform the market. While near-term volatility driven by global uncertainties may impact growth and margins in the short term, our focus on diversified scale, disciplined execution, and continuous investments in technology and innovation positions us to deliver 18 20% revenue CAGR on a five-year basis, alongside margin expansion, driving sustained, high-quality value creation for stakeholders.

SIGNIFICANT STANDALONE FINANCIAL RATIOS THAT REGISTERED MORE THAN 25% CHANGE DURING FY 2025-26

Ratio*	FY 2025\u201326	FY 2024-25	% YoY	Reason
Current Ratio	3.72	5.08	-26.8%	Variance due to reduction in current assets, primarily due to redemption of investment in mutual funds to fund the investment in wholly owned subsidiary.

* For additional ratios, please refer schedule 45 of the standalone financial statements.

RISK AND MITIGATION

At KFintech, risk management is embedded as a core strategic capability, ensuring resilience and sustainable growth. During the year, we implemented an integrated enterprise-wide risk management (ERM) and data privacy framework, strengthening governance across all business functions. We operationalised an advanced

ERM platform with real-time risk tracking, dashboards, and 100% user adoption, alongside RCSA coverage across 32 functions and subsidiaries, enabling continuous risk assessment and proactive mitigation. A centralised incident management framework, supported by monthly certifications and oversight, enhances accountability and responsiveness. Our commitment to robust controls is reflected in zero regulatory warning observations for three consecutive years and strong audit outcomes across business units. With continued investments in automation, data governance, and fraud risk controls, we are well positioned to manage evolving risks as we scale globally. For more information on our risk management and mitigation practices, please refer to page 78.

HUMAN RESOURCES

At KFintech, our people are at the core of our ability to innovate, scale, and deliver long-term value. During the FY 2025-26, our people strategy evolved from enabling growth to building a future-ready, skills-driven, and high-performance workforce aligned with our global ambitions. We strengthened human resource - business integration, enabling sharper workforce planning, capability mapping, and talent deployment to support our expanding digital and global operations. Our focus extended beyond hiring to building enduring organisational capability through structured learning, leadership development, and internal talent mobility.

We continued to invest in next-generation skills, including technology, data, and regulatory capabilities, while building a strong leadership pipeline through targeted development and succession planning. This was complemented by digital-first human resource practices and analytics, enhancing workforce agility and decision-making. Our emphasis on a collaborative, inclusive, and high-engagement culture, supported by strong employee experience and diversity initiatives, has strengthened retention and productivity. Together, these initiatives position KFintech with a scalable, agile, and future-ready talent engine to sustain long-term growth and competitive advantage.

As of March 31, 2026, our company employed 6,944 full-time staff.

For more information, please refer to our People Policy on pages 94.

INTERNAL CONTROLS

KFintech maintains a strong, enterprise-wide internal control environment designed to ensure disciplined execution, operational integrity, and governance across all business lines globally. Our internal audit function, led by the Chief Internal Auditor, undertakes continuous and independent evaluations of processes, systems, and controls to ensure alignment with internal policies, regulatory expectations, and global best practices.

We have established a comprehensive financial reporting framework, supported by robust internal controls, enabling timely, accurate, and transparent reporting of financial performance and key metrics in compliance with all applicable statutory and regulatory requirements. Our internal audit program, conducted by Ernst & Young LLP, follows a structured assurance plan approved by the Audit Committee. The Audit

Committee plays a central role in reviewing audit outcomes and strengthening control effectiveness, while the Board provides strategic oversight to ensure timely resolution of issues and proactive risk mitigation across the organisation.

CAUTIONARY STATEMENT

This release may contain forward-looking statements based on current expectations, projections, and beliefs regarding future developments and their potential impact on KFin Technologies Limited. These statements are subject to various risks and uncertainties and should not be construed as assurances of future performance.

Actual outcomes may differ materially due to a range of factors beyond the Companys control. KFin Technologies Limited assumes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.