Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Kfin Technologies Limited (NSE: KFINTECH) Q4 2026 Earnings Call dated Apr. 30, 2026
Corporate Participants:
Vivek Narayan Mathur — Chief Financial Officer
Venkata Satya Naga Sreekanth Nadella — Managing Director and Chief Executive Officer
Analysts:
Devesh Agarwal — Analyst
Karthik Chellappa — Analyst
Unidentified Participant
Abhijit Dey — Analyst
Unidentified Participant
Unidentified Participant
Dipanjan Ghosh — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the KFN Tech Q4FY26 earnings conference call hosted by IFL Capital Services Limited. As a reminder, all participant lines will be in the lesson only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Vedant Agarwal from IFL Capital Services Ltd. Thank you. And over to you sir.
Devesh Agarwal — Analyst
Thank you so much, Akra. Good morning everyone and welcome to the 4Q FY26 earnings conference call of KPN Technologies Limited. Today, from the company we have with us Mr. Srikanth Nadella, MD and CEO Mr. Vivek Mathur, Hotel Director and CFO. And Mr. Amit Murarka, CFO, International Business and Head of Investor Relations and Business Acquisition. I would now hand over the call to Vivek for his opening remarks. Thereafter Srikanth will share the key developments in the quarter. And after that we’ll open the floor for Q and A session.
Thank you. And over to you, Vivek.
Vivek Narayan Mathur — Chief Financial Officer
Thank you, Vedanta. I would request Srikanth to give his opening remarks and then I will cover the financial section.
Venkata Satya Naga Sreekanth Nadella — Managing Director and Chief Executive Officer
Excellent. Thank you. Thanks a lot Vedant for organizing this and for all the attendees. Very good morning. Warm welcome to our Q4 results. You’ve seen the data. What I would do is over the next 15 odd minutes walk you through in terms of how the quarter had gone by. By and large you are now familiar with the numbers. Hopefully we’ll spend a little bit of time in terms of how we see the upcoming year and then we’ll speak about the financials and then a bit of Q and A. You have the presentation with you.
We kept the content familiar for you so that you don’t have to spend too much time explaining as to what else. But by and large a lot of metrics that we have been tracking to consistently for over the past three years. Since we went public, we’ve been in the uptick. We continue to be the single largest investor solution provider in India for mutual funds in the form of the number of asset management companies we manage by aum. Of course we are second contender. Now that is a reflection in terms of how our clients grow.
Our performance is probably more attributed to the number of clients we win. So to that extent we continue to have high win ratio. Into the last year we won four new asset management mandates and we have several more to come into the coming month to two. In terms of the AUM itself we continue to have a market share expansion in the overall aum. While there has been a little bit of dip on the equity side of it. I’ll explain to you in terms of why and then what we see in terms of remediation or the turnaround as to when could potentially happen.
We continue to be one of the largest registrar in the form of the number of polios and consequently the number of investors we manage not just in India. Globally we should be amongst the top five and given much of the drive had been over the past five to six years, it all goes very well in terms of our market share expansion. So that’s on the mutual funds and we’ll kind of deep dive more in terms of the growth percentages, the vectors, the basis of so on and so forth. Issuer Solutions has been continually seeing quarter after quarter our market share expanding.
At this point in time we track to a little about 52% on the Nifty companies buy market share. In terms of market cap by folios it is about 45% and by the count it is slightly lower. But in terms of the net new client addition we’ve been having the highest in the industry. We crossed 10,500 total bobcat fly until as of 31st March. We aim to cross aim to get to close to 11,500 into this upcoming year both in terms of the listed unlisted and as well as our new focus to expand into the SME markets as well.
In addition to being the single largest region with provider as well as a bond market provider. Lastly, these two are mature businesses, the mutual funds and the issue solutions. And I know we’ve been guiding our entire community in terms of what are the new growth drivers. Assuming a base case scenario of anywhere between 15 to 18 or 19% growth on the mature businesses, how do we then get past 20%? If you see our last five years CAGR in terms of top line growth, we’ve been crossing 20% on a CAGR basis and we will have a quarter or two here and there but by and large we’ve been comfortable in accomplishing our own internal targets of 30% plus top line growth.
International business of course is one of the biggest bet. You are familiar with the fact that we have acquired a central solutions in the month of October. The quarter that had gone by had been an excellent performance by the inorganic acquisition as well as K Fintech’s own. I will discuss the financial numbers in a little while from now. We have added close to 499 clients overall. In terms of the fund managers and by funds themselves, it is substantively higher to be anywhere around 900, 950 thereabouts, pensions, smaller business.
But as I have explained in the previous quarter, it’s a turnaround quarter in terms of us having broken even and we continue to outpace the industry by a factor of three. The overall pension subscribers in the industry have grown about 11% for the full year. Including the last quarter we have grown little over 34%. That basically explains in terms of the superior technology solutions and the market share we are taking away from the current market leader and keeping a very distant third, fairly distant.
If I may, 16 alternate investment funds marking a 38% plus market share in the alternate investment funds continue to grow at a reasonable clip both in terms of the count of the assets as well as on the AUM. Bearing in mind that a bulk of the AIFs we manage are Cat 3 funds which have a direct public market movement from a secondary market standpoint in terms of the stock prices. Times like this, when we have pressure in the markets overall, clearly as much an impact there is on the mutual funds, there has been a certain amount of impact on the IAPs, but then again it’s a matter of time.
The markets could turn around and when that happens we should see a significant uptick. So in that context, I guess it’s been a fairly stable performance, especially in the top line growth, we’ve dropped a little over 23% year on year on the overall top line and that includes ascent of course. And even excluding ascent, we’ve grown around 11% thereabouts. EBITDA growth is about 5% and margins have compressed one would expect it to given we have added nearly on an annualized basis. We lowered $22 million of international revenue with little to no margin given the very early stage of the entity, but growing at 30 35% top line growth as I’ve explained in the previous quarter as well, as we consolidate and drive the synergies in terms of both cost optimization as well as driving big size or bigger sized clients will help us to drive the efficiencies.
For example, SN has won about five contracts, five funds which have little over $100 million in AUM. And that marks a rather quick turnaround in terms of the ability for the entity to bid for larger deals on the back of a stronger balance sheet and a public listed company strength and the technological capabilities that Cape Fintech is able to offer a full year growth of over 19%. You will see that the core path has grown on an annual basis at 6% but declined marginally. Or rather we have a flat path growth in the quarter.
And the core of course is in some sense adjusted for a one time exceptional item of the labor code driven inflation that we have accrued in the context of the payroll. Adjusted for that we’ve had a flat path. Q4 especially we had two headwinds. One a significant mark to market erosion in the case of mutual funds as has impacted and that is the data is out there for everyone to see in terms of the total market write downs. But to a decent extent, to some extent at least it was partially offset by continuing net positive flows into the industry.
Issuer Solutions have seen probably a little bit more dent primarily on the back of two points. One is a continual mass of the retail investors meant that the retail folios have further come down in the case of Issuer Solutions as well as the fact that in the previous year we have had demerger of a large listed company which had given a small bump up in the historical revenue for that quarter, which we did not have that. So in some sense there’s a slight base effect impact. But we believe that both these will get neutralized from this quarter onwards.
Overall our AUM has grown in line with the industry at about 21% but that of course did not necessarily translate into the revenues as they grow only about a little over 11%. Reasons we all know part of that was the pricing discounts that were given in the month of April 2025 and obviously the base effect of that would get over by this by the month of the 31st of March. So clearly that was one of the reasons why the overall AUM did not necessarily translate into the revenue. But there has been another two important factors.
One is massive market erosion which has a larger impact at EBITDA and a PAT level because what goes from top line for us directly goes from bottom line, especially if it is to be associated with mark to market. Third one is there has been a significant expansion in the passives. I would still think without necessarily being 100% sure of it in terms of if it’s a definitive trend or not, the metal ETFs thanks to the tremendous rise of silver and gold as we all know into the Q2, Q3 Q4 had meant that the asset mix for us for equity has come down by 200 basis points into the last two quarters.
We have in the month of April very early trends point to reversal of that which means that the share of ETFs is coming down and hopefully the share of the actively managed funds will go up which will drive the yield and revenue corresponding to that. We continue to win AMC mandates. We have more to announce into the coming months as we await. Whilst we have heard informal communications, we await for these clearance for us to be able to announce the same. We have 4 out of the 10 top 10 fastest growing AMCs by AUM with us and I guess all of that will continue to augur very well.
We do believe that in another quarter to two we might just end up having five out of the top ten AMCs to be serviced by KPM Technologies Issue Solutions I briefly spoke about it. We have added about 740 odd clientele market share expansion from last quarter to now by little about 80 basis points. We have continued to invest our efforts to orchestrate transitions. We have transitioned successfully Punjab national bank which has a very large retail folio base and SNS as well and many more to come hopefully in the coming times.
More importantly we are awaiting the launch of several large IPOs into the coming quarters. We are all obviously awaiting the Geo IP as well as several large ones. Many of those hopefully should happen into the coming quarter to two. That well put assure solutions in a much better state than what we have seen in the previous year. Many primary issuance has been withheld in the context of where the market is. Of course it is still anybody’s guess in terms of which way the markets go. It is possible that it will all be hunky tory in a few weeks from now or it could be worse but we have assumed a fairly conservative estimate as we are moving into the the coming year in terms of where we believe we will end up with high level numbers which we will speak about in a while from now from our alternate investment fund standpoint continue the similar expansion.
The AUM has grown about 19% revenue larger than that despite the fact that there had been a mark to market erosion even in this case given much of the funds we manage are Cat 3 funds and obviously where there is an adverse impact and we still have a quarter with a little over 20% growth and margins still holding below 37% will mean that as the markets turn around. We should go back to much brighter days into the coming quarters. By and large our solutions on technology data wealth have found strong resonance in the context of us winning our international mandate in Philippines.
Several more into the pipeline and not to mention a very successful completion of our largest contract in international with the Philippines largest bank, third fund accounting. And that proof of concept basically now leads into the execution phase which has pretty much started now. And with that included, we are looking at a pretty robust international revenue. The organic revenue to grow a little over 60% plus into this year and the overall international revenue to be a little over 70% including that of the SN, so to speak national pension system.
I’d like to believe that it will continue to expand in the same trend that we have seen in the past two years. We have excellent partnerships with all the PFMs, the POPs and just as importantly with the regulator. We have created the country’s first gig economy pension platform. We have created the country’s first health related insurance, unpledged driven, I guess, withdrawal of the funds for any person needing to undergo surgery, so on and so forth by liquidating part of nps. So these are some very unique and important technological solutions which are going to drive pensions into very fast growth in the coming year.
And it also obviously always very well that we have moved away from pricing at a brand level but into a basis point which is akin to that of our mutual fund business. So as the corpus of the AUM increases, we will partake in the gains and not necessarily be limited to the count of increase of the pensioners in the country itself. We have, you know, in terms of the overall industry, I’ll just quickly cover, you know, performance. But most basically about Casey Tech. Despite what could be considered as a very challenging year, I think, you know, we have continued to see a strong performance by the overall industry.
The mutual fund industry has still grown 21% and we expect, you know, a similar growth into this year as well. On the back of a potential or a possible turnaround in the market which we have not packed a whole lot. But given the velocity of the netflow, continues to be strong and resilient and given our clients have been growing at a very fast clip, we should continue to see a reasonably robust performance this year as well. The equity AUM, as I said, is a little bit of bother in terms of the market share coming down a little bit, but that is largely relegated two important factors from our assessment.
One is many of our clients have been very optimistic about passives. Consequently much of the passive fund movement. Mobilization in the industry has happened with our clients. That obviously has a downstream impact on the yield. But then again, as I said, this is probably capitalizing on the near term trends of the metal ETFs and we could see already in early April or for this month as of yesterday that there’s been a reversal of the second one. Just in terms of the configuration of the funds itself, I think our clients seem to have lesser hybrid funds as compared to the clients of the top competitor.
And if you saw the growth of the past three quarters in mutual funds, there’s been a good amount of growth that has come through into the hybrid funds. I’m sure it is a trend that our clients have seen it and probably they would launch a lot more hybrid funds and then probably fall back into the market share that we won’t. A lot more on the equity side as well. Sip inflows continues to be strong. We hold little over 37% of the market share in that space and continuing to grow. The number of DMAT accounts of course is more related to the issue of solutions.
Again, despite being challenging year 17% year on year growth is not a small number which already has a very high base of little over 25 crore or DMAT holders within the country. But that has not necessarily translated into investments into the secondary market by the investors. There has been a net erosion of close to almost 2 million folios in this year. And in spite and despite of it, we have shown good growth, decent growth I would say in corporate registry only, and only because we managed to win a substantial number of IPO mandates into the previous year which has contributed to that which otherwise would have been a negative in terms of the full year ocean that has happened into the previous year.
And with the retail investors coming back, it could just very well be a scenario where we have a substantial net new client additions and substantial net new folio additions which would drive the growth into the higher 20% numbers, though we have backed it a little over 15% for the coming year. Overall domestic mutual fund a little bit of color in terms of the market share which I’ve already spoken about 33 odd percent close to the overall market share. So we’re continuing to expand as you could see the trend from FY22 to FY26 consistently from 30.3% to 32.5%.
There’s been a market share expansion, even if it is a little slower into the coming quarter. But this is how cyclical it is of the industries certain AMCs do very well for a period of 3, 4, 5 years and then you will see a different set of AMCs performing very, very well into the subsequent cycle and it could just very well be our clients into the coming year. 2 But of course that’s not necessarily in our hands. We still believe that winning the mandates is important. Providing technological edge for our clients to grow faster is all that we have in our controllables and the rest is something that is dependent on how clients perform overall.
I guess given that our market share had been pretty resilient even during this time, we believe that as the industry grows, we’ll continue to grow alongside or slightly higher than the industry into the coming quarters and years. By and large, most metrics range positive whether it is net flows, whether it is SIP in terms of the inflows that are happening. The transaction volume continues to see fairly large growth in terms of the ticket size coming down, especially in the context of Jodi, SIP and a lot of other initiatives started by our regulator and AMPI with a view to drive financial inclusion in our country.
On the International Investor Solutions clearly our present acquisition you will see a significant and a dramatic expansion of the net new clients. What used to be 75 in the previous year now is little around 500 clients. And even if you exclude the inorganic to the pure organic client expansion has been quite substantial from 76, 110. The combination of both your RTA as well as fund accounting. In the last three quarters we have announced large deal wins in the gfs. So it’s not just the count, but what you’re now seeing is the wins of large deals.
And it is with that confidence that we are looking at about a 60% plus growth in the GFS into the upcoming year and obviously mark to market still will continue to play a certain amount of role in it. And with any luck it can be much higher than that should the markets turn around with macros improving. Overall, in terms of the international portfolio itself, if you see slide number 13, it has a very diversified mix which offers the hedge in terms of in years like this where the markets have been fairly tipping, the coverage is across.
Hedge funds, public market funds, digital assets, private equity, so on and so forth. It is possible that at any given point in time some of these asset classes can have a hit, for example Additional currency funds. It is also possible that the same can significantly outperform and I guess in some sense overcompensate for the slowness of the others. Geographically too we are very well diversified now. 18 countries as we all know, in terms of the revenue contribution outside of India, Malaysia, Singapore, Cayman Islands and Hong Kong are our larger geographies.
Middle east was expanding quite rapidly, but obviously with all that’s happening in the last couple of months, it’s a wait and watch. But what would nevertheless will happen is even if there is a downstream impact on the GCC side of it, much of those funds would be redomiciled into Singapore or Cayman or wherever. And the good part about us diversifying the way we have is that it doesn’t matter where it gets redomicile or migrates into because we have a presence in all those geographies which will mean that we will have very little to no impact at all even if funds were to move sort of, so to speak, on the issue of solutions, you know, we believe that the trend will continue to expand in terms of both the number of the clients and portfolios and the market capitalization.
Given there’s been a significant renewed push at our end. We have, you know, also leadership additions, you know, in this particular line of business to be able to, you know, capture times like this where I guess the resilience and the financial strength of Visa vis other competitors in this space, especially on issued solutions, we have a formidable strength which you will start seeing in the form of the net new client wins as well as driving higher revenue and margins in this business. Aif, as you can see, there’s been a substantial improvement in terms of the number of funds, 593 moving up to 741.
So it marks a little over a threefold increase in as many years. And I hope the trend will continue both in terms of new fund launches and our continued win rate across domestic, international and in the Gibbs City as well. The AUM itself slightly tepid in growth from the previous year, just about 19%. But again, just like in the case of domestic mutual funds, as I said, given much of what we do is capture funds, there has been an impact here as well. In terms of the AUM growth. It couldn’t have been more than 20% in a bad year like this.
NPS have already spoken, wouldn’t deliver much on that. I’ll spend a little bit of time on the how do we see the upcoming year? Right. I mean we are looking in spite and despite of what’s happening in the market and the global uncertainties we have, we believe that we have a reasonable line of visibility to get to about 23 to 24% top line growth into the coming year. Now this isn’t necessarily A guidance. But as much as I guess our bottom up predictions internally. Now, these unlike in the past years, we will have to recalculate course correct nearly every month from here on.
Given everything that’s happening in the market EBITDA we expect it to be around 16 to 17% and apparently around 10% growth is what we expect to see into the coming year. Now, as I said, this is a conservative base case. Should the macros improve and if there is a quick turnaround, in some sense, even with a little bit of positive news, late March, early April, we already saw the markets to perform much better. If I look at April for us, we have seen a 2.5% thereabouts increase month over month.
And that itself should give us heart in terms of if the macros were to dramatically improve, we can see a very, very substantive tailwind significantly enhancing both the revenue and the patent that I just spoke about. Even the standalone, the 27% I was talking about, 24% I was talking about is broadly consolidated version. Even organically, we believe we have line of visibility to grow close to about 15% and little over 11%. Now, the margin compression this year was obviously large on account of two important factors.
One obviously is the consolidation of accounts with asset, which we all knew that there was going to be a downstream drag into the overall margin. The second one of course was a substantive mark to market erosion that happened in Q4 in conjunction with a reasonable drop in the issue of solutions because of the retail investors moving out now, all of these factors no longer will be applicable. Now given the mark to market movement has seen uptake, retail participation has improved in the month of April and should this trend continue, we should have a much better quarter ahead of us.
Given this, the focus had been more in terms of controllables in terms of effective cost management and tightening the belt in terms of the discretionary spend. We believe that we have enough levers as I’ve always been maintaining, that if we see a protracted downtrend, you know we will definitely control the tap. I still do not believe that we are in that region of having a definitive view that there is a protracted downturn given the volatility. But we definitely have ensured that we have at least all new projects are going to be scrutinized with a greater detail of approval mechanism.
Cost management in the form of payroll, non payroll is something that has been been significantly enhanced. And despite that, with a little bit of tailwinds in the form of top line, that gives us as well as additional levers we have in the cost optimization. Hopefully we will be in a position to beat the numbers that I just spoke about into the coming year as well. So that’s broadly from us broad summary I think good top line growth agreeable I guess bottom line growth if you especially adjust for the one time exceptional item of the labor code driven cost inflation which is non recurring in nature.
Now we’ve taken heart from significant market share expansion and our goal to reduce the dependency on the domestic mutual funds to be below 50% at this point in time. We are 58% to be specific and there is a 3% value added solution driven revenue that we get from the MF clients. So if you exclude that which is purely tech revenue it is 58% and we said that we will get 250% over a five year period. We believe that we will be able to beat that sooner than we had anticipated. Given we are looking at a little over 70% plus growth in the international business into this year with the other businesses growing much much faster than the two businesses we should be able to have a much more diversified revenue and hence much better managed risk profile as a business that we have today.
I’ll take a pause, I’ll hand it over to Vivek to quickly consolidate the financial highlights and then we’ll take the questions.
Vivek Narayan Mathur — Chief Financial Officer
Thank you. Srikant on the financial performance, let me start with revenue. The overall revenue grew in the year at about 19.3% and for the same quarter versus last year, you know it has grown by about 23%. If you look at excluding ascent it has grown for the same quarter versus last year by 4.6%. And if you look at, you know sequentially, sequentially there is a degrowth in terms of the overall revenue by 6.3% and excluding ascent about 8 and a half percent. That’s mainly because of mark to market correction that happened in the second half of the year because of the geopolitical situation and movement of asset mix towards metals such as gold and silver and you know, whatever was perceived as mark to market gains through coming through mark to market movement in the overall AM growth was little offset by mark to market losses on the equity side.
So that resulted in a subdued performance. And also in the issue solutions business the corporate actions were tepid because of the geopolitical situation in the last quarter and also there was an exodus of retail clients from the participation in the equity market. So that also resulted in lower number of folios giving US income in Q4. So I will give you A flavor of how the revenue looks like at the end in Q4 on an overall revenue mix. Domestic mutual fund gives 61% of the revenue. Issuer solution now gives 10% of the revenue.
AIF private wealth management PMS gives 4.5% of revenue. GFS gives 4.5%. Ascent contributes 15% of revenue. NPS, Revile, Hexagram are just about one and a half each in terms of the revenue contribution. So that’s the breakup of revenue. If you look at, you know, expenses, the expenses because of Ascent have gone up. In terms of the overall expenses looking like, you know, the employee expenses, including Ascent have gone up by 30%. But if you exclude Ascent, it has gone up only by 13%. And the EBITDA margins, therefore, you know, if you look at for the whole year they have gone up slightly in terms of 5.1% growth growth and sequentially 15.2% down for the reasons I explained because of the integration and mark to market impact and lesser action on the issuer solutions and similar impact because of mark to market on eif.
But if you look at excluding Ascent, you know our margins were almost 42% in the quarter and for the whole year excluding ascent was 43.5%. Including ascent, we have maintained 40.7% EBITDA margin which is the guidance we have been giving. Although in the quarter it was 37%. Because of the reasons I explained that our range of 40 to 45% is something which we have maintained for the year. And as Srikanth talked about, we are working on various cost optimization initiatives and to improve productivity, leveraging technology investment and AI which is coming to play, which will help us in terms of sustaining these difficult times.
If the mark to market continues to behave in this volatile manner, we also expect the mix of AUM to change as metals have corrected and retail investors continue to maintain a robust sip. We do expect equity to come back. But irrespective of that, we are preparing ourselves to create the operating leverage by working on the cost optimization initiatives. So the core PAT for the whole year went up by 6.2% at 353 crores including ascent and the increase was 8.1% for the year without Ascent. For the same quarter last year versus this year there is a growth of 3.8%.
And if you look at PAT margins, We are at 27.1% on a consolidated basis. Without Ascent we were at almost 30% margin which is the guidance of 27 to 30% that we have been giving and we have maintained that if you look at the overall diluted EPS, it’s currently at 19.81 with Ascend and without Ascend it is 20.16. We are happy to take questions now.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star. And two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Kartik Chelappa from Indus Capital. Please go ahead.
Karthik Chellappa
Yeah, thank you for the opportunity. Good morning team. Two questions from my slide. The first one is just taking a cue from the comment that was made on the asset mix. As far as the domestic MF business is concerned, if we were to assume that the metal mix is more or less stabilized to possibly even declining, and if that were to be the case for FY27, can we say that our original expectation of domestic MF yields being down, let’s say about 4 to 5% year on year on a steady state basis, will that still hold true?
Or are there any other variables that we should be keeping in mind? That’s my first question.
Venkata Satya Naga Sreekanth Nadella
Good morning, Karthik, this is Srikanth. I’ll take that question. So the number that I spoke in terms of what our projections for the upcoming year assumes, continuation of similar asset mix as we have ended with the previous year. Though as I said, I do not necessarily believe that asset mix will be with ETFs almost at 23%. I believe the mix will be more in favor of actively managed funds this year. But in the base case of the numbers that I’ve said, you know, we considered the continuation of ETFs to be around the same number.
Karthik Chellappa
Excellent. And just to clarify, Srikant, your original guidance which you just shared right now was at a consolidated level you expected a revenue growth of about 22, 23% and an EBITDA growth of 16 17%. Right? At a consolidated level,
Venkata Satya Naga Sreekanth Nadella
That’s correct, Karthik. You know, it’s more. More to. More towards 24 to 25% top line and yes, EBITDA around 60.
Karthik Chellappa
Okay, excellent. My second question is as far as the issue of solutions is concerned, if I were to just look at this quarter in absolute terms itself, both the revenue and the segment profits are acted down. Now you did allude to some factors which are transient. But if I were to exclude those and look at it on a steady state basis. What is the expectation as far as the revenue growth for this particular segment is concerned? Because what I see is I do see that portfolios are weak, but they are still reasonably old and so are the transactions.
But it looks like it’s the realizations which have actually taken a bigger hit driving the decline. So I was asking the question more in context of that.
Venkata Satya Naga Sreekanth Nadella
Sure, Karthik, so I get what you’re saying. So the folios may look decent in terms of growth, but that was largely because of superior performance in terms of new wins. So the new wins have added little over two and a half three million folios. But the fact remains that all the existing clientele we lost over 1.7 million folios. And that is largely in the context of retail investors not showing a lot of active interest in the secondary market given the mark to market write downs over the past quarter or two.
Now that will change. I mean this is a seasonal business markets will go up and down, but retail investors will come back the moment they see here. But why do you still see the drop in the revenue numbers? And as there are two big reasons, right? I mean three big reasons. One is the polio reduction, as I told you. Second is the corporate actions traditionally Q2, Q3, Q4 are the corporate actions. Quarters in India Q2, Q3 more stronger than Q4 traditionally. But given again significant headwinds that the entire economy, especially at financials level is facing.
The corporate actions declared by the corporate India have been far and few right now. So that has impacted our revenues into Q4. And there is one third item which is smaller impact, but nevertheless an impact which is that we had orchestrated a very large demerger in the Q4 of FY25 which had a one time episodical bump up in revenue which did not obviously have it. So that means there was a slightly higher base in the previous year. Now that said, every year we should see some mergers, demergers.
Some of the demergers that were to have happened in the month of March have now been pushed to May. So which means that there is going to be a little bit of lag in revenue, but that will come in the upcoming quarter, more or less. Right? So those are the three reasons. A little bit of polio erosion, corporate actions being extremely low into the Q4 which will change as the corporate profits of the country grow. And in general, once I guess there is a little bit of certainty coming back, then the companies will be more confident in declaring dividends and so on and so forth, which was not the case because everybody was in our cash conservation mode into the previous quarter.
Karthik Chellappa
Excellent. Perfect. That’s all from my side. Thank you very much and wish the team all the very best.
Venkata Satya Naga Sreekanth Nadella
Thank you, Karthik.
Operator
Thank you. The next question is from the line of Rajit Agarwal from Nilgiri Advisors llp. Please go ahead.
Unidentified Participant
Hi. A very good morning. Just to start off with a few clarifications. Now the number of new clients added in ascent is about 62. I mean that’s like 20% of what they had last quarter. So that’s a big number. Right. And what really changed in this quarter and do you expect the run rate to carry forward?
Venkata Satya Naga Sreekanth Nadella
Absolutely. Right. I mean the. So again, just to put things into context, you know, Ascent started about five years back. Today they have, you know, the numbers are up north of close to 800, 850 odd funds and they’re increasing by the rate. So until and unless we are adding, you know, 70, 80, 100 funds every year, we wouldn’t be getting this far. So to that extent I would expect the trend to be even faster into the coming quarters and years. The same issues we face in India are being faced everywhere in the world as well.
Right? I mean, so to that extent, despite a fairly distressed financial markets across the globe and fundraising activities activity being a little tepid and the same is the case with investment activities downstream. I think this amount of growth actually is slightly benign compared to our expectations. But I do believe that as the turnaround happens, we should see numbers higher than 60 that you saw in this quarter.
Unidentified Participant
That’s wonderful. But at the same time, when we are talking about the ebitda outlook for FY27, it doesn’t, it doesn’t seem to factor in much of an operating leverage that we were hoping to kind of see from this quarter or the next couple of quarters. So how do we look at the expense side of Ascent?
Venkata Satya Naga Sreekanth Nadella
See, I think if you see the, if you split the EBITDA numbers for the standalone cave and I’m kind of, when I say standard, of course we have other subsidiaries also part of it, including etc. But excluding ascent, our EBITDA margins this year too had been pretty strong, close to about 43. We are expecting that number to go up into the coming year. What we have been saying is cape in standalone in the past three years, we’ve always maintained we will be able to return 40 to 40% EBITDA numbers. Now, even after acquiring asset and consolidating Ascent’s numbers, we are still looking at the same 40%.
Now that obviously would not have been possible until and unless there has been significant productivity driven efficiency gains that are coming through. For a business that has a significant growth potential, starting new geographies, getting into new asset classes, significant business development expenditure for us to win new mandates, so on and so forth, one would expect that expenditure will have a downstream drag. So what truly is happening is a lot of productivity gains driven cost optimization is funneling and fueling the growth.
Like you mentioned, if you are winning these many number of mandates, that has to come largely in the form of significant BD spend. So if you are looking at a fairly mature business, if you just take a look at only India business without having to try to be growing global and launching new businesses like, well, so on and so forth, you would see a significantly higher leverage than what you’re seeing here. I guess what I’m saying is the productivity is fueling the growth. Till such time we have a huge growth, visibility, market share gains, we will continue to do it.
And so long as the margins as we have been maintaining around 40 to 45%, hopefully more closer to 45 than to 40, I’d like to believe this is a good strategy for us to fuel growth rather than just conserving the cash, using the productivity back into it.
Abhijit Dey
Got it. That’s very helpful, sir.
Unidentified Participant
And just a quick clarification on the numbers. And now I’m picking the numbers from the slides that you have shared on Consolidated Financial Summary excluding and including Ascent. So if you look at the EBITDA of Ascent and PBT and Pat. So the difference between EBITDA and PBT seems to have gone up for Ascent in this quarter and similarly between PBT and Pat. So why is that happening if you can, you know, quickly? I mean, is the depreciation somehow increased on Ascent and are we paying tax in Ascent despite net negative profit before tax?
Vivek Narayan Mathur
Yeah, I’ll take this question. This is Vivek Master. So there is, you know, an amortization of the assets that we acquired from Ascent, you know, including the client contracts and the brand valuation which was done, which is getting amortized over a period of time. And that is where you see the gap and that is something which will remain consistent because it will be written off over a period of time. And this will actually sustain in terms of as the business grows and Asyn continues to grow that business and start creating operating leverage.
That’s why, to answer your question as to why we are not seeing operating Leverage, it doesn’t come in one quarter or one year. It’s a process which you will see in coming quarters. And when we acquired, we gave the guidance that you will have to be with us for two, three years to see the impact of growth and operating leverage. And we are working on it. You see a good growth in terms of the revenue growth of Ascend and the new acquisitions that they are doing in terms of number of funds and number of clients which over a period of time should.
Sorry to interrupt.
Operator
So your voice is streaking.
Vivek Narayan Mathur
Can you hear me now?
Operator
Yeah, this is good. Please proceed, sir. Thanks.
Vivek Narayan Mathur
Yeah, yeah, that’s it. So as we, as we grow assigned business, the operating leverage will kick in to offset the impact of the amortization and depreciation of intangibles.
Unidentified Participant
Understood. And is there a currency benefit in the top line of asset? The top line growth of asset.
Vivek Narayan Mathur
So actual top line growth is 5%, but in INR you will see about 8% growth. That sequential.
Unidentified Participant
Right, right. Sequential. We are talking about. Yes. Okay. Thank you, sir. Thank you.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to two per participant. Should you have a follow up question, please rejoin the queue. The next question is from the line of Jatar Ksha from Union Mutual Fund. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Operator
Yes, you are.
Unidentified Participant
Thank you. Sir, just one question. Any thoughts you have on the Dr. Changes? I’m sorry to interrupt.
Operator
Can you please use your handset mode?
Unidentified Participant
Hello?
Operator
Yeah. Please proceed, sir. Thank you.
Unidentified Participant
Just one question. How are you reading the changes in the TR norms effective this year and going forward? How are you anticipating, you know, the changes that will be passed on from the large ms? Because most of them have been talking about managing the margins going forward. That would be helpful.
Venkata Satya Naga Sreekanth Nadella
Sure. Thank you. As we have given our narrative the previous quarter, bulk of our contracts have been negotiated in the previous year. We have one each for this year and into the upcoming year. The negotiated contracts also take into account the TR driven reduction that the clients have been facing. And given that there is no net new impact that we have. But at the same time, please do bear in mind that the AMC results that you have seen in the past three, four days, five days, they’re all operating with EBITDA margins up north of 60, 65%.
So clearly there is no yield pressure, margin pressure for the asset management companies. And that’s largely because, you know, registrars have been single handedly been, you know, reducing the cost to serve, which is operations, is one of the biggest costs. And against a 60 basis points average yield, you know, our yield is just about 3%. I mean so that 3 basis points that translates to less than 5% of the total biggest operating cost managed by us and reducing it, you know, year after year. So we have already, you know, passed on much of the benefits that go through into the previous year.
And there is going to be no additional discussions on this topic from here.
Unidentified Participant
Thank you sir.
Operator
Thank you. The next question is from the line of Supratim Latta from Jefferies. Please go ahead.
Unidentified Participant
Hi, thanks a lot for the opportunity. I had three questions starting with the first one. You know, based on your guidance of 24, 25% growth, 16, 17% EBITDA growth, it seems like you are building in for an EBITDA margin of somewhere around 38, 39% in FY27 including ascent. Now previously you had indicated that, you know, after Ascent integration, also the market you will hold on to a margin of somewhere around 40% at the EBITDA level. So just wanted to understand, you know, as you know, is there some new development that has happened because of which you have, you know, you move that guidance.
And secondly, just wanted to understand what all is included in the guidance. Does the, you know, it seems like the guidance includes an ETF AUM share of 23, 24%. Does it also include the fact that, you know, the cost growth will remain as is? So just wanted to understand, you know, on the cost and aum, what, what are you assuming that’s the second. And lastly on the Ascent side there are based on your release, it seems like you have gotten 600 plus US dollar AUM funds this quarter. Assuming that you know, you get somewhere around 10 basis point, 8 to 10 basis point, that should add some around 4, 5% to your revenues.
Just wanted to understand is that math correct? And when does this revenue start kicking in? Does it kick in over two, three years or does it start kicking in from FY27 itself? So if you could give us some color on these three things, that would be very helpful. Thank you.
Venkata Satya Naga Sreekanth Nadella
Thank you. Suprathen. So I’ll address a few and I’ll request to address a few of these in terms of. So first of all, it’s not necessarily a guidance. As I said, you know, we do not give formal guidances to the street in our projections. You know, basically your math is right. I think, you know, you are looking at close to 39 odd percent. We have estimated with a Decent sense of conservatism, you know, coming from the hindsight of what happened in the past 2, 3/4 in the markets. As you know, we are in a business which has a very, very strong connect to the market and we cannot.
And even the range that we give, obviously slightly broader than what you may like or even what I would like to give. But it’s largely because of the vagaries that we have a dependence on the markets and hence our business cannot be looked at quarter to quarter, month to month as a business. On a compounding year to year basis, we continue to look at 20% top line growth margins around 40 to 45%. You may have a transient quarter or two where there may be a drip, or you will also see quarters where the numbers have gone to 48%, 50% thereabouts, but eventually averaging down to that, we still have a very strong visibility to 40% every time to this year.
Right. If you work the math backwards, it’s close to 39%. But of course, you know, the numbers that we spoke was at the time of SNTEC position, which is probably the last workshop that we had, was sometime a year back. And obviously the world was a better, very different place at that point in time. And we said even at that point in time we’ll still try to maintain 40 to 45. And with the world being dramatically different today, we are still saying that we have the confidence to get that far. So I guess in some sense that speaks about the resilience of the business as well as our own capabilities to manage the cost in bad years or tipped years or years when there will be completely sideways movement.
One must also understand that our business growth in non mutual fund and issuer solutions, which is a mature business, comes at a slightly lower margin, which you’re all aware because these are all brand new businesses built over the last three, four, five years and they do not necessarily at a business unit level contribute to the same margins as our mature businesses do. So if you see years like this when issuer solutions and mutual funds slowed down a bit because of the market vagaries, but our top line growth still dramatically at 24%.
That means that these going to come with revenue coming from businesses which are not contributing to the same margin level and hence you will see a certain amount of margin pressures. But despite all that we are still optimistic to get to 40 and slightly above that. But the math that you said would be somewhere around 39 in terms of the number that I told you, those are drop order of magnitude not exactly precise numbers. We are still aiming to cross 40% into this year. So was the first on the guidance, I mean on the EBITDA numbers and happy to take down if you want and double click on that on the Ascent Fund Solutions on the new funds at $100 million, the revenue will obviously each of these contracts are in different regions for different clients and the start date for each of these is not exactly the same.
One contract has already started late last quarter itself, in fact, third week of March thereabouts. So you will be able to see full year’s revenue for that. Of the remaining five, three will be starting later part of this quarter and the remaining into the Q2. Now, these are obviously the deals that have already been signed. We still have a pretty steady pipeline of many more such $100 million fund deals which we are hoping to consolidate and track into the coming quarter to two. So what you’re talking about is the ones that we have already signed, obviously through the year we’ll sign more.
And the timing of the launch obviously depends on a lot of things. I mean, you’re already proficient about these markets, so should the market look benign for fundraise to happen, as well as for downstream investments, I’m sure the funds will launch sooner than later. It is also possible that if the macros were to materially be jeopardize, then despite winning a contract, we might just have to defer the revenue because the client has yet to launch the fund. But we have factored, I think, certain amount of revenue from all of these six funds.
So the precise numbers we won’t be able to diverge. But then it’s fair to say that about three and a half to four contracts worth of revenue would have been fully baked into this year. And it is possible that it can go all the way up to six if they launch soon enough. And should we win more deals, which we are hopeful to, that number can go up even further from here. The other question, sorry, the third one was on the cost. My apologies, I could not get to note that down. Vivek, if you have, could you answer that please?
Vivek Narayan Mathur
Sure. Srikanth. So in terms of the, you know, the cost optimization initiatives that we are taking, you will see that we are trying to protect 40% margin because, you know, Ascent adding almost 15% of the total revenue margins, which are just about 5, 6% will go up to early teens. Still, there is a lot of gap between Core K Fintech margins and Ascent margins. And that operating leverage will come over a period of time. Therefore, we are tightening our belt within K Fintech to create that operating leverage to protect 40% margin.
On your point on ascent bips, it is actually not 10bps. Ascent is in the range of 6 to 7 bips and that is what you should factor if you are modeling anything. But you know, suffice to say that, you know, Ascent will continue to win larger clients, more clients and 25, 30% revenue growth for them is a good growth in an international market in a competitive environment. We are working with them in terms of creating operating leverage and giving them, you know, enablement and capability to command premium in the market by developing solutions, you know, like, you know, simulation for wealth managers or you know, for fund managers and LPGP reporting, which we have been talking about that, you know, Hexagram team and SM team are working together.
So we are working religiously in terms of creating that unique advantage and you will see the results of that in times to come.
Unidentified Participant
I’m
Operator
Sorry to interrupt. Mr. Dutta, we are not able to hear you. Your voice is cracking. No, still the same. Please use your handset mode and try to speak something.
Unidentified Participant
I’ll join the queue later.
Operator
Yeah, thank you. The next question is from the line of Deepanjan Ghosh from Citi. Please go ahead.
Dipanjan Ghosh
Hi, good evening everyone. Just few questions from my side. First, if I look at your presentation and you have broken up the revenue into various streams. If I look at the alternatives, private wealth and PMS revenue, whether I look at quarter on quarter or I look at year on year, there seems to have been a meaningful drop and conjunction with that. Also the OPE revenues which you specify, if I look at sequentially there has been a decent drop. Even yoy it looks flattish to down and I’m just talking about 4Q perspective so just wanted to get some color on what’s really going on out here.
Second, in terms of your assent and new client sense, could you give some color? I mean would this be like small long shot funds, HFTs or these would be like large fund structures, like one you had historically maybe in the last 18 to 24 months. So just want to get some color on the clientele proposition. And the reason I asked this is because if I go back in time and look at absence yields at one point it used to be like eight, nine bibs. Now you’re down to like six, six and a half. So what’s really going on out here?
Venkata Satya Naga Sreekanth Nadella
Let me address the second question first and then we can talk about the other things. I think the yield, you know, is Obviously a factor of, as I said, you know, multiple things. Part of that is pricing, part of that is asset mix. Right? I mean, in years where you have, you know, for example, crypto in the digital currency funds is one of the bigger basket of the total fund solution that we ascend as. Now cryptos, for example, have seen fluctuations up and down and to set an extent, that may either offset the growth of the yield of a more stable asset or it can significantly enhance depending upon which way some of these move.
So given that the asset mix drives a very important factor in terms of the overall yield, it is possible that intra quarter or inter quarter within the same year you will see these numbers. But ascent was always around 7. I do not believe it was ever at 9 basis points thereabout. So with a plus or minus 50 basis points, you should see that movement which can work in your favor or against you, depending upon which asset class is performing in which manner. On the alternatives front, I am sorry, I’m sure can tell me where exactly you’re looking at.
I probably missed that point. So if you were looking at your presentation
Dipanjan Ghosh
In 4Q26, I see the alternatives, private wealth and PMS revenues at 16 crore. In third quarter it was 20.7 crores. In the fourth quarter of last year it was 18.3 crores. Quoting from your presentation,
Venkata Satya Naga Sreekanth Nadella
That is slide number 22. Yeah, so I’ll take that. So basically the alternatives, private wealth and pms, there are three components, as you can clearly see, right? Aif, the wealth and the pms. AIFS is the larger part of it. And you know, there, that is where you saw our continued market share expansion as well as the net new fund addition, nearly 24, 25% AUM increase and equal number of, you know, equal increase in the form of the overall number of funds itself, both the AUM as well as on the fund.
So AIF is kosher. Private wealth and PMS was where there was a little bit of an impact. Again largely on account of, you know, mark to market. Right. I mean you have funds which are, all of these are directly linked to the markets. And there’s been a reduction, as you saw, from Q1 to Q2 to Q3 to Q4, which with each quarter there has been a markdown in the valuation of the underlying stocks and therefore the total aum. Also in the case of wealth, we have won six large contracts into the early part of the year.
And wealth is more a platform play in some cases, especially when you go to the large wealth managers. But if you are Dealing with a new age wealth manager. It is a full service model, much like how we do it in asset management space. So it is our platform, our people, we charge basis points on the outcome. So the deals we have won into the early part of the year were platform deals, which meant that there was a slight uptick in the revenue for that quarter. Some of the other deals into the Q3, Q4 could not be materialized again because almost all entities have been on weight and watch and cash conservation model.
We do believe that many of those deals that have been withheld foreclosure will get rectified in this quarter.
Dipanjan Ghosh
Got it. Thanks for explanation and all the best.
Venkata Satya Naga Sreekanth Nadella
Thank you.
Operator
Thank you. The next question is from the line of Abhijit Sakre from Kotech Securities. Please go ahead.
Abhijit Dey
Good morning. My first question is if you could just broadly indicate what were the EBITDA margins in the fourth quarter. And secondly related question is, you know, the point around the depreciation or the amortization of intangibles, you know, how do we think about the impact coming from there into FY27 and FY28 as well? And secondly, there was also a labor code impact that came in in the fourth quarter. Whereas what we’ve seen across most of the other companies and sectors is that everything was absorbed in the third quarter itself.
So some clarification there would be helpful.
Vivek Narayan Mathur
Sure.
Venkata Satya Naga Sreekanth Nadella
Would you want to cover that?
Vivek Narayan Mathur
Yeah, I’ll take that. So the SN Q4 margin was 8%. And you know, what was the second question on the amortization that we have done? The amortization actually in in Singapore is valuation of the client contracts and brand against the goodwill that you pay and you get it externally valued, which is amortized over a period of, you know, 10 years. And that is something which is around 6 crores, which is having an impact on the PAT Consolidated PAT when you merge Cafe in Singapore Ascent with K intent on the labor code, one time impact, 12.6 for the whole year, which will not be there from FY27 onward.
This was one time impact.
Abhijit Dey
Okay. Yeah. And then like when we think about FY28 as a year and then the, the delta between the EBITDA growth and the PAD growth, would you expect some convergence in the year 2028 between the two numbers
Vivek Narayan Mathur
In terms of EBITDA and PAD? So yeah. So for example,
Abhijit Dey
F27 we are sort of indicating like a heightened EBITDA growth and a PAD growth of like low double digits or so
Vivek Narayan Mathur
That differential
Abhijit Dey
Between the two numbers. How do we think about it from an FY28 perspective.
Vivek Narayan Mathur
Yeah, it will narrow down. It will go in almost similar range because you would have, if you look at FY28 over FY27, it would have been normalized.
Abhijit Dey
Understood. Okay, that will be all, thank you.
Venkata Satya Naga Sreekanth Nadella
Also, I think what you would see is the trajectory of the acquisitions margins improving from the time we started discussing, at which point in time it was a negative territory by the time we acquired and to where we are today and has already started contributing into the positive territory and at a pad equity level as well. And the synergy plan that we have, which basically optimizes cost, which we already spoke about, whether it is technology, real estate, people, shared service functions, so on and so forth, those plans have been drawn out and have been put in place.
So the effect and the impact of all of these, you know, you will start seeing the higher margin contribution, you know, and that obviously will reduce, I guess, the gap between revenue growth and EBITDA growth is coming.
Abhijit Dey
If I may just one more question. At the time of the asset acquisition, I think the broader direction of thinking on the margin was that in about three to five years, by the time the transaction closes, the margin would reach somewhere, you know, upwards of 35%. That understanding still stays. Right. I think that’s not changed over the last couple of quarters.
Venkata Satya Naga Sreekanth Nadella
Absolutely. In fact, when we said what we said, that was obviously based outside in perspective of based on the due diligence information. Now, obviously we work together now we are even more confident than what we said at that point in time. In fact, we’ll try to move the number even beyond that.
Abhijit Dey
Okay, that’s helpful. Thank you.
Operator
Thank you. The next question is from the line of Uday Pai from INVAS Tech. Please go ahead.
Vivek Narayan Mathur
Yeah, thank you for the opportunity. Just a couple of things. So we had launched a KRA business last two, last quarter, or it went live in the last quarter. Any update on that? Also, any update on the Aladdin platform integration that we had done? So any color on both these sites is something I was looking for. Thank you.
Venkata Satya Naga Sreekanth Nadella
Thank you there. I’ll take that. So the KRA platform, as you rightly said, went live late Q3, in fact, early Q4. So obviously it’s in the early stages of business growth. We are extremely thrilled that in a very short period of time we have closed contracts with a little over 25 asset management companies, large brokers, and have been chosen by AMFI to be the preferred partner in the objective of identifying the unclaimed assets that are lying in the the country. This is an initiative from the Finance Ministry.
Given there is a significant quantum of money that is held up in unclaimed money and then we are not able to track and trace. So our technology has been proven to be best in class and hence to be chosen. So you will start seeing the growth in the business from here on. But that said, I think whilst our overall contracts have been very strong and within what we have signed, there has also been some industry shifts, I think which I have already alluded to back in the day where it is possible that the overall Kiari revenue itself may have a little bit of impact across the industry in the context of the initiative that there will be a singular POS point of sale ID that is going to be leveraged for securing and fetching the KYCs, which effectively will then mean that a decent part of KRA revenue which comes in the form of fetch costs probably will go away.
Now it is not yet operationalized but that’s under discussion. So expect. But that happens, you know, obviously there will impact on the overall KRA industry and not specifically to kfit. But if that were not to happen, I guess, you know, we will see, you know, reasonably robust growth into the KRA business into the coming year. As for Aladdin, you know the status has slightly moved ahead from what I spoken last time, which is about the integration. Right. This is exceptionally complex and a very large integration.
We need to bear in mind that we are talking about the world’s largest risk management platform on which close to 30, $40 trillion worth of stuff gets orchestrated. Integration with downstream systems. Bear in mind we are more a fund accountant in this conversation. Our platform is Empower. The front office system is Alargan, so that needs to be integrated with this and training needs to be imparted. Business development lifecycle has to kick in to win the clients so it will take a little bit more time.
We need to stay patient. But what we have been gaining through this process is a phenomenal understanding in terms of how large international platforms behave, what goes into it, what drives their growth, what helps them to sell, how do they manage their internal operations on and so forth. All of that is invaluable and an experience that can’t be quantified in numbers here. But that’s something that will definitely reflect in our overall international expansion. But the direct integration as well as into the business development activity should start in a couple of quarters from now.
Vivek Narayan Mathur
Sure sir. Thank you. That’s it from my side.
Operator
Thank you. That was the last question for today. I now hand the conference over to the management for closing comments.
Vivek Narayan Mathur
Thank you everyone for attending the conference. I just want to reiterate what Srikanth mentioned, that we continue to work towards creating operating leverage. We are taking a hard look at all of our costs and, you know, in terms of enablement of whatever investments we have done in technology to leverage that, and working closely with ESSENT to gain more market share and create that operating leverage in the international business. You will continue to see, quarter after quarter, the results of our integration with ESSENT as they play out in terms of improving both the top line and the bottom line.
Thank you so much for attending today. Thank you.
Operator
Thank you very much on behalf of IFL Capital Services limited that concludes this conference. Thank you all for joining us today. And you may now disconnect your lines.