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Informist, Wednesday, Jul. 29, 2026

By Shakshi Jain and Adhithya Aji

NEW DELHI/MUMBAI – KPIT Technologies Ltd. expects a return to meaningful sequential revenue growth alongside reasonable margins from the March quarter of 2026-27 (Apr-Mar), the management told analysts in a post-earnings conference call Wednesday.

This comes after the engineering research and development services provider's consolidated revenue for the June quarter declined 2% sequentially to INR 16.75 billion. The consolidated net profit declined 28% sequentially to INR 1.17 billion. Its consolidated earnings before interest, tax, depreciation, and amortisation margin contracted by 340 basis points sequentially to 17.2% and the EBIT margin shrank by 360 bps to 12.3% for the three months.

This was primarily due to a pause in two large accounts, comprising a Japanese and a European original equiment manufacturer, who undertook substantial cuts in their spending to control costs, the management told journalists in a virtual conference shortly before the call with analysts. The sales drop impact of this pause was partially offset by growth in other accounts, it had explained. The company expects stability to return in these two accounts in the second half of the ongoing financial year.

Overall, challenges for the global automotive sector have multiplied due to geopolitical issues, Managing Director and Chief Executive Officer Kishor Patil said. "The last one, which was the war, which was probably the most unexpected by many companies, it also had a significant impact in terms of their supply chain and the cost, input cost. With all this, specifically for European players have been the most impacted, both because they had impact in China market as well as the Chinese competition getting into their own market, which is in Europe," he added. 

The primary clientele of KPIT Technologies includes some of the top global passenger and commercial vehicle manufacturers.  

Sales in Europe will continue to experience some weakness in the ongoing quarter, as per the management. However, category-wise, the commercial vehicle segment is expected to return to growth from this quarter itself. In the June quarter, 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.

KPIT Tech is now targeting broad-based growth through a multipronged strategy, which includes increasing wallet share from existing clients, engaging with new clients, and enhancing focus on its products and solutions. The global partner to the automotive and Mobility ecosystem is also exploring opportunities in the micro mobility and the deep tech industries, the management said.

"...I have also said that we will be very patient with China, but we will continue to grow and invest in China," Patil said in the call, adding that KPIT Tech hopes to land meaningful engagement with at least one original equipment manufacturer in the region. He said the company has also found reasonable traction for its products and solutions in China.

Patil explained that volumes of the automotive industry have taken a beating in China and companies there understand that profitable growth now lies outside of the region, which is where KPIT Tech comes across as favourable partner. "But as important is, as you know, many global OEMs are having, forming partnerships in China. We believe that that also we can leverage significantly going forward," Patil later added.

On annual salary increments amid a slump in sales, Patil said the company will roll out wage hikes in stages. "We will give it to some of the younger grades soon and the senior people will get it over the future."

Wednesday, shares of the company ended over 6% higher at INR 638.75 on the National Stock Exchange.  End

Edited by Akul Nishant Akhoury

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