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Informist, Thursday, Jan. 29, 2026

 

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--KPIT Tech to pay INR 2.25 per share interim dividend 
--KPIT Tech appoints Anup Sable as COO with immediate effect 
--KPIT Tech interim dividend record date is Wednesday 
--KPIT Tech Oct-Dec consol net profit INR 1.33 bln 
--Analysts saw KPIT Tech Oct-Dec consol net profit at INR 1.94 bln 
--KPIT Tech Oct-Dec consol revenue INR 16.17 bln 
--Analysts saw KPIT Tech Oct-Dec consol revenue at INR 16.21 bln 
--KPIT Tech Q3 one-time cost due to impact of labour codes INR 597.12 mln 
--KPIT Tech Oct-Dec consol net profit INR 1.33 bln vs INR 1.69 bln qtr ago 
--KPIT Tech Oct-Dec consol revenue INR 16.17 bln vs INR 15.88 bln qtr ago 
--KPIT Tech Apr-Dec consol net profit INR 4.74 bln vs INR 5.95 bln year ago 
--KPIT Tech Apr-Dec consol revenue INR 47.44 bln vs INR 43.14 bln year ago 
--KPIT Tech Oct-Dec UK, Europe revenue INR 8.68 bln vs INR 8.28 bln qtr ago 
--KPIT Tech Oct-Dec Americas revenue INR 4.38 bln vs INR 4.42 bln qtr ago 
--KPIT Tech Q3 Rest of the World revenue INR 7.42 bln vs INR 8.02 bln qtr ago 
--KPIT Tech Oct-Dec profit excluding exceptional cost INR 1.93 bln 
--KPIT Tech Oct-Dec consol EBITDA INR 3.33 bln vs INR 3.35 bln qtr ago 
--KPIT Tech Oct-Dec consol EBIT INR 2.52 bln vs INR 2.60 bln qtr ago 
--KPIT Tech Oct-Dec EBIT margin 15.6% vs 16.4% quarter ago 
--KPIT Tech Oct-Dec consol sales up 1.5% on qtr in constant currency terms 
--KPIT Tech Oct-Dec consol sales growth flat on yr in constant currency terms 
--KPIT Tech: Steady deal wins to result in better growth in FY27 against FY26 
--KPIT Tech Q3 contract value of new engagements won $202 mln vs $232 mln QoQ 
--KPIT Tech Oct-Dec passenger cars vertical sales $141.79 mln, down 1.2% QoQ 
--KPIT Tech Oct-Dec CV vertical sales $34.71 mln, up 10.5% QoQ 
--KPIT Tech Q3 feature development, integration sales $110.6 mln, up 0.6% QoQ 
--KPIT Tech Oct-Dec total headcount 12,724 vs 12,879 qtr ago 
--KPIT Tech:Focus on deeply penetrating new geographies including India, China 
--KPIT Tech: Expanding into mobility segments and adjacencies 
 

 

By Shakshi Jain

 

MUMBAI – KPIT Technologies Ltd. Thursday reported a double-digit sequential fall in its consolidated bottom line for the December quarter due to a one-time cost arising from changes in wage regulations, prompted by the new labour codes. Further, the company's total expenses rose faster than the top line on a sequential basis for the reporting quarter, adding to the pressure on profitability. The sequential decline in KPIT Technologies' bottom line for the December quarter was higher than in the trailing quarter but lower than in the June quarter.

 

Meanwhile, the company's consolidated top line rose marginally on a sequential basis in the quarter under review. It was, however, slower than the sequential top line growth registered in the trailing quarter.

 

Both KPIT Technologies' consolidated net profit as well as revenue from operations for the December quarter missed the Street's expectations.

 

KPIT Technologies' consolidated top line for the December quarter rose nearly 2% sequentially and over 9% on year to INR 16.17 billion. This was slightly below the INR 16.21 billion expected by the Street.

 

KPIT Technologies' consolidated net profit for the December quarter fell over 21% sequentially and nearly 29% on year to INR 1.33 billion. This was due to a one-time cost of INR 597.12 million on account of implementation of the new labour codes. In the absensce of this exceptional item, the company's net profit for the quarter would have been INR 1.93 billion, the change in tax notwithstanding. Analysts had pegged the company's net profit for the quarter at INR 1.94 billion.  

 

The new labour codes manadate that basic pay, dearness allowance, and retaining allowance must account for at least 50% of an employee's total cost to the company. As a result, payouts tied to statutory contributions such as gratuity and leave-related benefits are set to increase for companies. KPIT Technologies reported an incremental impact of INR 481.98 million on gratuity and of INR 115.14 million tied to long-term compensated absences in its December-quarter financials.

 

SEGMENTS, GEOGRAPHIES

KPIT Technologies' consolidated revenue in constant currency terms grew 1.5% sequentially but was largely flat year-on-year in Oct-Dec, the company said in a presentation to investors. The recently acquired cloud-gaming firm N-Dream and the Caresoft business accounted for 3.4% of the sequential revenue growth in the December quarter, the company said.

 

"We see increased traction in trucks and off-highway sub-verticals as we integrate Caresoft operations," the company's co-founder and Joint Managing Director Sachin Tikekar said.

 

KPIT Technologies reported a total contract value of $202 million for new engagements won during the December quarter, slightly lower than the $232 million worth of engagement reported for the trailing quarter. 

 

The company said that steady deal wins would result in better growth in FY27 compared to FY26. It added that the transformative engagements won by the company would contribute to high-quality revenue growth in the medium term.

 

In terms of segments, revenue from the Americas declined marginally in the December quarter to INR 4.38 billion from INR 4.42 billion in the trailing quarter. Sales in the 'rest of the world' segment recorded a sequential decline of 7.6% to INR 7.42 billion in Oct-Dec. Meanwhile, in the UK and Europe segment, revenue grew 4.8% sequentially to INR 8.68 billion in the quarter under review.  

 

As per the break-up for the different verticals, revenues from the passenger cars category declined 1.2% sequentially to $141.79 million in the December quarter. Sales in the feature development and integration vertical grew 0.6% sequentially to $110.56 million in Oct-Dec, while those in the commercial vehicles category rose 10.5% on quarter to $34.71 million. Revenues from the architecture and middleware consulting vertical declined 2.3% sequentially to the $30.49 million and those from the cloud-based connected services vertical grew 1.3% on quarter to $40.26 million in the reporting quarter.

 

The company said it is transforming through expansion into mobility segments and adjacencies, and penetrating deeply in newer geographies such as India and China.

 

For the first nine months of FY26, KPIT Technologies' consolidated net profit fell over 20% on year to INR 4.74 billion, while its revenue from operations rose almost 10% to INR 47.44 billion.

 

OPERATIONAL MOVEMENT

KPIT Technologies' consolidated earnings before interest, tax, depreciation, and amortisation for the December quarter totalled INR 3.33 billion, down slightly from INR 3.35 billion in the trailing quarter. The company's consolidated earnings before interest and tax for the reporting quarter added up to INR 2.52 billion, down from INR 2.60 billion in the September quarter. KPIT Technologies' EBIT margin for Oct-Dec contracted sequentially by 80 basis points to 15.6%.

 

The company's total headcount in Oct-Dec fell to 12,724 from 12,879 in the September quarter.  

 

In a separate filing, KPIT Technologies declared interim dividend of INR 2.25 per share for FY26. The company also said Anup Sable has been appointed the chief operating officer of the company with immediate effect. 

 

Further, KPIT Technologies has transferred 26% shareholding in N-Dream AG to its wholly-owned subsidiary KPIT Technologies (UK) Ltd. "to bring in parity in KPIT group organisation structure." The overall group's 90% shareholding in N-Dream remains unchanged.

 

Shares of the company Thursday closed 5.7% lower at INR 1,042.80 on the National Stock Exchange.  End

 

US$1 = INR 91.95

 

Edited by Avishek Dutta

 

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