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Informist, Wednesday, Jul. 29, 2026

 

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--KPIT Tech appoints Anant Talaulicar as chairman for one year 
--KPIT Tech appoints Omkar Panse as chief technology officer 
--KPIT Tech Apr-Jun consol net profit INR 1.17 bln 
--Analysts saw KPIT Tech Apr-Jun consol net profit at INR 1.62 bln 
--KPIT Tech Apr-Jun consol revenue INR 16.75 bln 
--Analysts saw KPIT Tech Apr-Jun consol revenue at INR 16.86 bln 
--KPIT Tech Apr-Jun consol net profit INR 1.17 bln vs INR 1.63 bln qtr ago 
--KPIT Tech Apr-Jun consol revenue INR 16.75 bln vs INR 17.11 bln qtr ago 
--KPIT Tech Q1 consol UK, Europe revenue INR 8.84 bln vs INR 8.86 bln qtr ago
--KPIT Tech Q1 consol Americas revenue INR 5.14 bln vs INR 4.57 bln qtr ago 
--KPIT Q1 consol Rest of World sales INR 7.89 bln vs INR 8.79 bln qtr ago 
--KPIT Tech Apr-Jun revenue down 3.6% on qtr in constant currency 
--KPIT Tech Apr-Jun revenue up 0.1% on year in constant currency 
--KPIT Tech Q1 contract value of new engagements won $257 mln 
--KPIT Tech Apr-Jun consol EBIT margin 12.3% vs 15.9% qtr ago 
--KPIT Tech Apr-Jun consol EBITDA margin 17.2% vs 20.6% qtr ago 
--KPIT Tech Apr-Jun consol EBIT INR 2.05 bln vs INR 2.71 bln qtr ago 
--KPIT Tech: Expect EBITDA margin to improve QoQ every quarter going forward 
--KPIT Tech MD: Few of our largest clients continue to face pressures 
--KPIT Tech joint MD: Expanding presence in high-growth client accounts 
--KPIT Tech joint MD: Accelerating momentum in trucks, off-highway segments 
--KPIT Tech Apr-Jun passenger cars vertical sales $138.07 mln, down 2.4% QoQ 
--KPIT Tech Apr-Jun CV vertical sales $33.99 mln, down 12.2% QoQ 
--KPIT Tech Q1 feature development, integration sales $102.98 mln, dn 4% QoQ 
--KPIT Tech Apr-Jun revenue from US $53.93 mln, up 10.5% on qtr 
--KPIT Tech Apr-Jun revenue from Europe $87.83 mln, up 1.2% on qtr 
--KPIT Tech Q1 revenue from Japan, Korea, China $28 mln, down 25% on qtr 
--KPIT Tech: Auto cos in Q1 hit due to competition from China, US tariffs 
--KPIT Tech headcount 12,303 on Jun 30 vs 12,520 qtr ago 
--KPIT Tech CEO: Well positioned for stronger growth in Oct-Mar, beyond 
--KPIT Tech Q1 value of new engagements won $257 mln vs $349 mln qtr ago 

 

By Arya S. Biju

 

MUMBAI – A slowdown in revenue from its major geographies amid sudden actions by some original equipment manufacturers dragged down KPIT Technologies Ltd.'s overall top line for the June quarter. Lower revenue coupled with higher employee benefit expense and a foreign exchange loss of INR 162.77 million weighed on the company's bottom line for the quarter. 

 

After staging a recovery in the trailing quarter, the company's consolidated net profit reverted to its southward journey, declining 28% sequentially to INR 1.17 billion in the June quarter. This was way below the INR 1.62 billion net profit estimated by the Street. On a year-on-year basis, its net profit fell 32%. 

 

The engineering research and development services provider's consolidated revenue for the June quarter declined 2% sequentially to INR 16.75 billion. This was also below the INR 16.86 billion estimated by the Street. The company's revenue fell on a sequential basis for the first time in 23 quarters. However, on a year-on-year basis, the company's revenue grew nearly 9%. 

 

In dollar terms, the company's revenue for the quarter declined 4.4% sequentially and 0.6% on year to $176.8 million. This was below the $178.9 million estimated by the Street. The on-year fall in dollar revenue was, however, slower than the 1?cline the company had guided in June following sudden actions by some European original equipment manufacturers, triggered by an adverse business outlook. In constant currency terms, its revenue declined 3.6% sequentially but grew 0.1% on year. 

 

Shares of KPIT Tech rose as much as 10?ter the June quarter earnings announcement. At 1412 IST, the stock came slightly off highs and traded 6.5% higher at INR 641.55 on the National Stock Exchange. 

 

The company's total expenses for the reporting quarter grew 1% sequentially to INR 15.09 billion. This was mainly on the back of a 1.3% sequential rise in its employee benefits expenses to INR 10.60 billion and a near 3% rise in its other expenses to INR 3.26 billion. The company's other expenses for the quarter included a foreign exchange loss of INR 162.77 million.

 

The company's consolidated earnings before interest, tax, depreciation, and amortisation for the June quarter declined 18.5% sequentially to INR 2.88 billion. Its EBITDA margin for the quarter contracted by 340 basis points to 17.2% from 20.6% in the trailing quarter. "Q1FY27 EBITDA margins impacted due to revenue reduction. Hereafter margins will improve successively every quarter, aided by revenue mix and growth and AI (artificial intelligence) led productivity gains," the company said in a post-earnings investor presentation. 

 

The technology services company's earnings before interest and tax for the reporting quarter declined more than 24% sequentially to INR 2.05 billion. Its EBIT margin for the June quarter contracted 360 bps to 12.3% from 15.9% in the trailing quarter. 

 

"The Q1FY27 performance has been slightly ahead of the outlook we shared at the end of the quarter," Kishor Patil, co-founder, chief executive officer and managing director of the company said in the presentation. "While a few of our largest clients continue to face pressures, the strategy we have pursued to diversify our growth across clients, geographies, mobility segments and offerings is beginning to demonstrate its resilience."

 

Further, the company highlighted that AI-led products and solutions have become a common thread across its portfolio, and it is seeing good traction across AI defined mobility, vehicle engineering, digital cockpit, autonomous technologies and aftersales. "We believe our focused investments, differentiated capabilities and trusted client relationships position us well to return to stronger growth in H2FY27 and beyond," Patil said. "We have successfully navigated similar industry cycles before and remain confident in our strategy, execution and long-term direction," he added. 

 

During the June quarter, the company also saw an increase in loss from its joint venture, Qorix, due to revenue postponement, it said in the presentation without giving further details. The share of loss from Qorix was INR 140 million during the reporting quarter. 

 

 

SEGMENTS AND GEOGRAPHIES

Revenue from the company's operations in the UK and Europe, its largest geography, declined slightly on quarter to INR 8.84 billion. Revenue from its rest of the world segment declined over 10% sequentially to INR 7.89 billion. Revenue from its operations in Americas, on other hand, rose over 12% sequentially to INR 5.14 billion. 

 

Revenue from the company's operations in the US grew 10.5% sequentially to $53.93 million in the June quarter. Sales from its Europe business grew 1.2% sequentially to $87.83 million. Revenue from the company's operations in Japan, Korea, and China declined 25% on quarter to $28 million and those from South-East Asia, India, West Asia, and Africa declined 41.1% on quarter to $7 million.

 

KPIT Tech's sales from its passenger cars segment declined 2.4% sequentially to $138.07 million and those from the commercial vehicles segment declined 12.2% on quarter to $33.99 million. Sales from its feature development and integration business declined nearly 4% sequentially to $102.98 million. Revenue from its architecture and middleware consulting and cloud-based connected services businesses declined 0.6% and 8.3% to $32.08 million and $41.71 million, respectively. 

 

"Passenger Car OEMs (original equipment manufacturers) across Germany, France, the UK and Japan have announced some strict measures to control costs to tackle the current business pressures faced by them," the company said in the presentation. Further, automotive players were impacted due to chinese competition, US tariffs and falling profitability during the quarter, it added. 

   

DEAL, OPERATIONAL METRICS

During the quarter ended June, KPIT Tech secured new engagements with total contract value of $257 million. This was higher than the total contract value of $200 million–$250 million estimated by the Street but was lower than the $349 million reported in the trailing quarter.

 

Revenue contribution from time and material-based contracts declined 2.6% sequentially and those from fixed price-based contracts fell 5.2% during the June quarter. Its strategic client revenue share declined 1.3% sequentially. The company lost 217 employees during the reporting quarter, taking its total employee headcount to 12,303 as of Jun. 30. 

 

Along with the quarterly earnings, the company announced appointment of Anant Talaulicar as chairman of its board for one year. It also appointed Omkar Panse as chief technology officer, effective immediately.  End

 

US$1 = INR 95.6475

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

 

Edited by Akul Nishant Akhoury

 

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