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Informist, Thursday, May 7, 2026

 

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--KPIT Tech: Deal pipeline remains satisfactory, signings highlight of Q4 
--CONTEXT:Comments by KPIT Tech's management in post-earnings analyst concall 
--KPIT Tech:AI-led transformation may lead to some near-term cannibalisation 
--KPIT Tech MD: Expect integration programme opportunities to come in 2 yrs 
--KPIT Tech MD: See micromobility, new mkts as big part of business by 2032 
--KPIT Tech: See headroom for growth in exisitng accounts 
--KPIT Tech:Much of growth in last 4 yrs was from vehicle software offerings 
--KPIT Tech: Will convert 4 clients to new pricing model in Q1, 4 more in Q2 
--KPIT Tech:See more stability in passenger car portfolio with 3 new clients 
--KPIT Tech: 3 new OEM clients more resilient to geopolitical, macro issues 
--KPIT Tech MD:Expect truck segment players to open up to software journey H2 
--KPIT Tech MD: Only scanning, sensing deeptech for now 
--KPIT Tech MD: Determined to expand margin in medium term 
--KPIT Tech: Internal goal to achieve sustainability targets before 2040 
--KPIT Tech: Expect 30% YoY sales growth in products, solutions in FY27 
--KPIT Tech:See over 50% revenue from solutions, products in the medium term 
--KPIT Tech: See scope for increasing gross margin via products, solutions 
--KPIT Tech: Impact of West Asia war not coming up in client talks currently 
--KPIT Tech: Revenue from China similar to that from India 
--KPIT Tech:See passenger car segment remaining core for co, OEM spend rising 
--KPIT Tech: Don't see any more programmes coming to abrupt end near term 
 

 

By Shakshi Jain and Astha Oriel

 

NEW DELHI – KPIT Technologies Ltd. expects its products and solutions to contribute more than 50% of revenue by 2028-29 (Apr-Mar), with category growth pegged at 30% year-on-year in the current financial year, the management said in a post-earnings meeting with analysts Thursday. The company also sees scope to increase its gross margin in the segment, Co-Founder, Chief Executive Officer, and Managing Director Kishor Patil said.

 

"Pipeline continues to be satisfactory, products and solutions contributing about 21% to the total pipeline," the company said in a presentation to investors. Overall, the company is determined to expand its operating margin to 22-24% by FY29.

 

Much of the company's growth came from vehicle software offerings in the past four years and the passenger car segment is expected to remain its primary breadwinner in the coming times, with spending by original equipment manufacturers seen rising, the management said. At the same time, the company expects micromobility and new geographies to become a larger part of its business by FY32. KPIT Technologies also anticipates greater software integration opportunities in the next two years, the management said. 

 

"We are not giving up on passenger cars. It's our bread and butter. It will continue to remain our bread and butter going forward. However, as the size of our company grows, we also need to expand our horizons in a very strategic manner. That's exactly what we are doing by looking at trucks and off-highway," Co-Founder and Joint Managing Director Sachin Tikekar said.

 

Tikekar believes players in the truck segment will open up their wallets and embark on the software-defined journey in the second half of FY27. The company has added four truck manufacturers and six off-highway players across four different countries to its list of clients. It has also added three new passenger car manufacturers, which in Tikekar's view are far more resilient to the dramatic changes taking place in the segment. "They are feeling less of the pressure as compared to some of the others," he said. "So, I think that makes the passcar (passenger car) portfolio a lot more stable for us."

 

On a broader level, the impact of the West Asia war is not coming up in the company's conversations with its clients, as per the management. While two of the largest software-defined vehicle programmes that the company is engaged in are coming to an end in the first half of FY27, the management does not anticipate any more programmes to come to an abrupt end in the near future. The loss of revenue due to the ramp-down in these two programmes will be largely compensated by growth in newly acquired accounts, the management said, adding that it sees headroom for expansion in existing accounts.

 

KPIT Technologies is in the midst of a transition to a new pricing model with its clients. "There is a substantial shift from time and material to fixed price... the reason to get to fixed price was, unless it's fixed price or outcome-based, we cannot really apply our solutions, especially that are infused by AI (artificial intelligence), in order to be of value," the management said. 

 

The company is converting four of its largest clients to the new model in the ongoing quarter with the next four scheduled for the September quarter. In terms of challenges, the management said AI-led transformation opportunities may cannibalise revenues in some areas in the near term, but it sees better prospects for itself with these solutions in the long term. In the deeptech space, the company is only "sensing and scanning" the probabilities currently and it is not on the company's immediate horizon, the management said.

 

On a query tied to the company's revenues from China, the management declined to provide a figure but said the contribution is similar to that from India.

 

Among other areas, the company said its internal goal is to achieve the sustainability targets before 2040. The company aims to reach net-zero carbon emissions by 2050.

 

For the March quarter, KPIT Technologies reported a consolidated net profit of INR 1.63 billion, up over 22% on quarter. Its top line rose nearly 6% sequentially to INR 17.11 billion. Thursday, its shares ended 3.5% lower from Wednesday at INR 722.65 on the National Stock Exchange.  End

 

Edited by Saji George Titus and Rajeev Pai

 

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