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Informist, Monday, Nov. 10, 2025

By Shakshi Jain

MUMBAI – KPIT Technologies Ltd. Monday reported weaker than expected earnings for the September quarter as the company's total expenses rose faster than its revenue in the three-month period. Its top line for the quarter, however, beat the Street's expectation by a small margin. 

The company's performance in Jul-Sept was better than in the trailing quarter, both in terms of top line and bottom line.

The technology company, which provides engineering research and development services to automotive companies, reported a consolidated net profit of INR 1.69 billion for the September quarter, down 1.6% on quarter. Analysts had expected the company to report a bottom line of INR 1.95 billion. On a year-on-year basis, the company's consolidated net profit was down 17% in Jul-Sept.

The company's consolidated revenue in the reporting quarter rose just over 3% sequentially and almost 8% on year to INR 15.88 billion. This was higher than analysts' consensus estimate of INR 15.67 billion.  

Total expenses of the company rose 3.4% sequentially and almost 10% on year to INR 13.58 billion in the September quarter. This was led by a near 12% sequential rise in other expenses at INR 2.71 billion. Employee benefits expense increased marginally on quarter during the three months ended Sept. 30 to INR 9.78 billion. Depreciation and amortisation expense rose amost 19% sequetially to INR 747 million and finance costs jumped over 35% on quarter to INR 163 million.

Revenue from Americas fell over 3% sequentially in the September quarter to INR 4.42 billion, while the contribution from the Rest of the World segment rose marginally during the three months to INR 8.02 billion. The UK and Europe markets took the lead in the September with a near 14% sequential rise in revenue contribution to the top line of the company at INR 8.28 billion.

For Apr-Sept, the company's consolidated net profit fell over 16% on year to INR 3.4 billion, while its revenue from operations rose over 10% to INR 31.26 billion.  

Sales in the passenger cars vertical declined 1.3% on quarter in Jul-Sept to $143.57 million, the company said in a presentation to investors. Revenue of the architecture and middlware consulting vertical fell almost 13% sequentially to $31.22 million in the quarter under review.

Meanwhile, sales in the feature development and integration vertical grew 3.9% on quarter to $109.9 million in the reporting quarter. Revenue from the commercial vehicles and off-highway category grew 19.3% sequentially to $31.40 million and that from the cloud-based connected services vertical grew 10% on quarter to $39.73 million.

In dollar terms, the company's revenue in the September quarter totalled $181 million, up from $178 million in the trailing three-month period.

In constant currency terms, KPIT Technologies' consolidated revenue rose 0.3% sequentially and 0.4% on year in Jul-Sept. Within this, the engineering solutions business of Caresoft Global accounted for 2.5% sequential growth, the company said, adding that it did not include contribution from the Italy arm of the recently acquired company. 

KPIT Technologies closed deals worth $232 million in the quarter under review. "Despite ongoing global uncertainties, we are seeing signs of renewed optimism in the mobility ecosystem...We are confident about a better H2 and a promising FY27," company Chief Executive Officer and Managing Director Kishor Patil said.

The company's total headcount stood at 12,879 as on Sept. 30, up from 12,545 a quarter ago but down from 13,087 a year ago.

MARGIN MOVEMENT

KPIT Technologies' consolidated earnings before interest, tax, depreciation, and amortisation aggregated to INR 3.35 billion in the September quarter, up from INR 3.24 billion in the trailing quarter. 

KPIT Technologies' consolidated earnings before interest and tax, or EBIT, in the reporting quarter stood at INR 2.60 billion, down from INR 2.61 billion in the June quarter. Its EBIT margin contracted 60 basis points sequentially in the September quarter to 16.4%.

KPIT Technologies incurred additional expenses related the Caresoft aqusition in the September quarter – INR 43 million in depreciation and amortisation cost, INR 47 million in finance cost on deferred consideration, and INR 60 million in a one-time associate loss.

Shares of the company rose over 3% on the National Stock Exchange to an intraday high of INR 1209.50 after the company announced its results. At 1444 IST, its shares were at INR 1,197.60, up 3.9% from the previous close.  End

US$1 = INR 88.69

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

Edited by Avishek Dutta

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