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Informist, Monday, Nov. 10, 2025

By Shakshi Jain

NEW DELHI – KPIT Technologies Ltd. is expected to report a low single-digit sequential growth in its top line for the September quarter, driven by contribution from the recently acquired gaming firm N-Dream AG and the engineering solutions business of Caresoft Global. The organic revenue of the company is expected to have declined sequentially in the reporting quarter due to soft demand in the mobility segment globally.

The operating margin of the company is expected to remain flat on a sequential basis for the September quarter. Analysts expect the decline in revenue growth to be offset by tight control over discretionary costs for the reporting quarter. Further, the depreciation of the rupee against the dollar is expected to support operating margins for Jul-Sept.

The technology company, which provides engineering research and development services to automotive companies, is expected to post 2% sequential growth in its top line for the September quarter at INR 15.67 billion, according to the average of estimates from 10 brokerages. This would also mean 7% growth in revenue on a year-on-year basis. The highest estimate for revenue is INR 15.88 billion from ICICI Securities Ltd. and the lowest is INR 15.37 billion from Elara Securities Pvt. Ltd. 

The company's consolidated bottom line for the reporting quarter is expected to rise 13% sequentially but may fall 4.5% on year to INR 1.95 billion. The highest estimate for net profit is INR 2.05 billion by Motilal Oswal Financial Services Ltd. and the lowest is INR 1.79 billion by ICICI Securities.

Weak global demand for automotive sector products has resulted in delays in starting new projects and a ramp down in some existing projects, brokerages said. Further, deal closure cycles are elongated and the pace of ramp up of existing deals is slowing, ICICI Securities said.

Kotak Securities Ltd. expects a 2.4% sequential decline in the company's September quarter organic revenue due to low demand and slower-than-expected ramp up of deals. "Weakness in Asia and Americas would drive revenue decline, primarily in the PV (passenger vehicle) segment," the brokerage said.

Brokerages estimate the company's two recent acquisitions will contribute $4.5 million to $5.0 million in revenue for the September quarter.

"TCV (total contract value) has been above the US $200 mn (million) mark for the past 6 consecutive quarters and we expect this trend to continue as it wins deals across the US and Europe," Nirmal Bang Equities Pvt. Ltd. said in a report. Meanwhile, Equirus Securities Pvt. Ltd. expects September quarter deal wins will be lower, given slower decision-making by clients. In the June quarter, the company had bagged new deals worth $241 million.

In constant currency terms, analysts see the company reporting a marginal sequential growth in revenue for the reporting quarter.

The company's earnings before interest and tax, or EBIT, margin is expected to contract 47 basis points sequentially for the reporting quarter to 16.53%, according to the average of estimates from seven brokerages. "We expect 30 bps EBIT margin decline, primarily due to acquisition-related amortisation charge," Kotak Securities said.

KPIT Technologies is expected to report INR 3.18 billion in earnings before interest, tax, depreciation, and amortisation for the September quarter, according to the average of estimates from five brokerages. The highest estimate for EBITDA is INR 3.33 billion by Equirus Securities and the lowest is INR 2.7 billion by Prabhudas Lilladher Pvt. Ltd.

Brokerage Prabhudas Lilladher said it expects the company's EBITDA to remain flat for the reporting quarter due to the benefit of the depreciation of the rupee against the dollar and deferment of wage hikes to the December quarter. For the June quarter, the company had reported a consolidated EBITDA of INR 3.24 billion and an EBITDA margin of 21%.

KPIT Technologies had reported a consolidated net profit of INR 1.72 billion for the June quarter on revenues of INR 15.39 billion. In the year-ago quarter, the company's consolidated net profit was INR 2.04 billion on revenues of INR 14.71 billion.

KPIT Technologies will announce its September quarter results Monday. Investors will watch out for the company management's commentary on deal pipeline and conversion timelines for large engagements, decision-making by clients, especially for large deals, and the impact of curbs on exports of rare earth metals by China. "We will wait to hear more about the JSW Motors collaboration as the execution on this is expected to begin from 3Q (Oct-Dec)," brokerage Nirmal Bang said. KPIT Technologies and JSW MG Motor India Pvt. Ltd. had formed a strategic partnership to build the software and digital backbone for a new energy vehicles portfolio. 

At 1220 IST, shares of KPIT Technologies traded at INR 1,171.90 on the National Stock Exchange, up 1.6% from the previous close. The stock is down 7.6% since the company reported its results for the June quarter on Jul.30. 

Among the 14 research recommendations on the stock available with Informist, nine have a "buy" rating on KPIT Technologies while three have a "hold" rating, and two have a "sell" recommendation. The average target price of the "buy" recommendations is INR 1,627 and that of the "hold" calls is INR 1,320.

Following are the Jul-Sept earnings estimates for KPIT Technologies from 10 brokerages in descending order of the estimate of net profit in INR million:

End

US$1 = INR 88.68

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Tanima Banerjee

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