KPIT Technologies Limited
KPIT is a global technology company with software solutions that will help mobility leapfrog towards autonomous, clean, smart and connected future. With 13000+ Automobelievers across the globe, specializing in embedded software, AI & Digital solutions, KPIT enables customers accelerate implementation of next generation mobility technologies . With development centers in Europe, USA, Japan, China, Thailand and India.
Business segments:
1) Feature Development & Integration (62%): Electrification, AD-ADAS, Body Electronics and VED.
2) Architecture & Middleware Consulting (19%): Middleware and AUTOSAR.
3) Cloud-Based Connected Services (19%): Intelligent Cockpit, Digital Connected Solutions and Diagnostics.
Shareholding Pattern:
Financial Summary:
| Particulars | Mar-21 | Mar-22 | Mar-23 | Mar-24 | Mar-25 |
| Sales – | 2,036 | 2,432 | 3,365 | 4,872 | 5,842 |
| Sales Growth | -5.59% | 19.48% | 38.34% | 44.77% | 19.93% |
| Expenses + | 1,729 | 1,981 | 2,732 | 3,881 | 4,613 |
| Operating Profit | 307 | 451 | 633 | 991 | 1,230 |
| OPM % | 15% | 19% | 19% | 20% | 21% |
| Other Income + | 21 | 32 | 43 | 60 | 170 |
| Net Profit + | 147 | 276 | 387 | 599 | 840 |
| EPS in Rs | 5.33 | 10 | 13.9 | 21.69 | 30.63 |
| Dividend Payout % | 28% | 31% | 29% | 31% | 28% |
Synopsis of Financials:
Financial and operating highlights (Q3 FY26)
- Revenue growth: +9.4% YoY in INR, +3% YoY in USD
- Profitability: EBITDA +6.8% (after absorbing “partial increments”).
- PAT: Net profit excluding the one-time Labour Code impact is INR 1.53bn vs INR 1.53bn last quarter.
Final Outlook:
KPIT is a fast-growing IT company focused only on the automobile and mobility sector. The company has shown strong revenue and profit growth over the last few years, and margins are improving. Recently, growth has slowed slightly due to global auto industry uncertainty and transition towards solution-based projects. However, the company’s long-term opportunity in electric and smart vehicles remains strong. Financial position is healthy and debt is low.
Recent Performance (Q3 FY26 – Simple View)
- Revenue growth: +9.4% YoY (INR terms)
- Growth in USD terms is lower (around 3%)
- Profit remained stable even after salary increases
- Company invested in acquisitions (Caresoft, N-Dream)
- Cash available: around ₹900 Cr (approx.) after acquisitions
Management said:
- Q4 growth will be better than Q3
- FY27 growth will be higher than FY26
- But they are cautious due to transition toward solution-based and AI work
Final Verdict: HOLD
KPIT is a strong long-term growth company, especially in EV and mobility software.
But near-term growth is moderate and valuations may already reflect future growth.
👉 HOLD for long-term potential.
