General Atlantic may sell 10–15% stake in KFin Technologies via block deals

Private equity firm General Atlantic may sell a 10–15% stake in financial services platform KFin Technologies Ltd through block deals, sources told CNBC-TV18. The block deals are expected to take place at a 5–8% discount to the current market price (CMP).

From Q3FY24 to Q1FY26, General Atlantic sold a 26% stake in KFin Technologies. At present, the investor holds a 22.9% stake in the company. When approached, General Atlantic told CNBC-TV18, “We don’t comment on market speculation." KFin Technologies is yet to respond to CNBC-TV18’s query on the matter.

First Quarter Results

Revenue for the quarter fell 3% from the previous quarter to ₹274.5 crore, which was marginally lower than the CNBC-TV18 poll expectations of ₹282 crore. Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the period fell 7% year-on-year to ₹113.8 crore, which was in line with expectations of ₹114.7 crore.

Also Read: KFin Tech maintains FY26 growth guidance despite weak Q1 performance

EBITDA margin for the quarter stood at 41.5% from 43.25% in the previous quarter, although they were better than the expectations of 40.7%. Within segments, the domestic mutual fund business saw growth of 3% from the March quarter. However, the issuer solutions and international solutions business saw a decline of 22% and 11% respectively, in June.

All three business segments saw a decline in margins, with the international solutions business margins narrowing by 1,581 basis points. Margins of issuer solutions and domestic mutual fund business narrowed by 885 basis points and 431 basis points, respectively.

Shares of Kfin Technologies Ltd ended at ₹1,093.20, down by ₹56.20, or 4.89%, on the BSE.

Also Read: General Atlantic likely to offload 6% stake in KFin Technologies via block deals