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Informist, Wednesday, May 6, 2026

NEW DELHI/MUMBAI – KPIT Technologies Ltd.'s earnings before interest and tax margin for 2026-27 (Apr-Mar) is likely to range from 15.6% to about 16%, the company's management said in a post-earnings virtual press conference Wednesday. The earnings before interest, tax, depreciation, and amortisation margin is likely to reach 22–24% by FY29, the management said.

"...The difference between EBITDA and EBIT will improve basically because some of these acquisitions over three years, the depreciation will come down," company co-founder, Chief Executive Officer, and Managing Director Kishor Patil said.

Earlier in the day, the company disclosed plans to acquire a 100% stake in Israeli cybersecurity firm Cymotive Technologies Ltd., starting with an investment of $10 million in preference capital, which will be converted into a 26% stake once the purchase is executed by mid-June. The total consideration payable by KPIT Tech to Cymotive is expected to be between $60 million and $120 million, including the $10 million for the initial stake.

"We expect that FY27, this Cymotive as a financial performance will not be consolidated and, therefore, those numbers will not be added," Chief Financial Officer Priyamvada Hardikar said.

For the March quarter, KPIT Technologies reported a consolidated net profit of INR 1.63 billion, up over 22% on quarter. Its top line grew nearly 6% sequentially in the three months to INR 17.11 billion. The company's EBITDA margin was largely unchanged sequentially in the reporting quarter at 20.6%, while the EBIT margin expanded by 30 basis points to 15.9%.  

As per the management, the company incurred higher finance costs in the fourth quarter, largely due to a term loan taken in October to finance its acquisitions. The decrease in the fair market value of its investments was due to the changes in foreign exchange rates and because N-Dream AG turned into a step-down subsidiary from an associate company earlier.

For the double-digit year-on-year decline in revenues from the architecture and middleware consulting segment in Jan-Mar, the management blamed postponement or cancellation of new programmes by passenger car companies under rising cost pressure. "...Some of these programmes will come back for maybe 2030-2031. So we expect this to pick up in the next year or so."

In a presentation to investors, KPIT technologies said two of the largest software-defined vehicle programmes, that the company is engaged in, will come to an end in the first half of the ongoing financial year. "The exact time and the way it will ramp down is still a little fluid, but it would have a significant impact in the first part of the year. But at the same time, we have won, as you have seen, many deals and the engagement is strong... this will be the portion to offset substantially part of these drops and of course, will lead to certain growth in the due course," the management said.

The company officials stressed that KPIT Technologies has acquired new clients, not only in the passenger cars segment, but also in the trucks and off-highway categories. "Initial engagements have started with them and we believe that as we go deeper into FY27, we will see more business coming from them."

The technology company won two large deals in the March quarter, reporting aggregate new engagements worth $349 million for the three months, up 73% sequentially. 

Overall, KPIT technologies remains bullish on its growth prospects despite the possibility of deal ramp-downs, deferrals, or cancellations due to geopolitical challenges and macroeconomic uncertainties. On the automotive market in Europe, the management said the original equipment manufacturers continue to struggle there and that is likely to continue in FY27. However, the company expects growth coming its way from the market in the ongoing financial year.

On Wednesday, shares of the company closed over 3% lower at INR 748.60 on the National Stock Exchange.   End

US$1 = INR 94.61

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

Reported by Shakshi Jain and Arya S. Biju

Edited by Deepshikha Bhardwaj

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