KPIT Technologies Reports 17% Decline in Q2 Profit to Rs 169 Crore Amid Revenue Growth

KPIT Technologies, a company focused on the automotive sector, reported a 17% drop in net profit to Rs 169.08 crore for the quarter ending in September. This decline was attributed to losses from joint ventures and associated companies. In the same period last year, the Pune-based firm had recorded a profit of Rs 203.7 crore, as per regulatory filings.

The company's revenue from operations rose by 7.9% to Rs 1,587.71 crore in Q2 FY26, compared to Rs 1,471.41 crore in Q2 FY25. On a quarterly basis, profit fell by 1.6%, while revenue increased by 3.18%. KPIT's net profit decline was largely due to losses from "minority investments" in product and solutions companies that are still in their investment phases, leading to quarterly profit fluctuations.

Investment and Growth Prospects

Priya Hardikar, KPIT's CFO, stated that without these losses, the net profit would have been Rs 191.8 crore for the quarter. "We are investing in product companies. We do see growth coming from those companies in the times to come. Because they are product and solutions companies, their quarterly rhythm is not linear. In this current quarter, we see a dip in their profits, and therefore, our share to pick up those losses has been high. But operationally, our profits have increased," she explained during an earnings call.

The total contract value (TCV) for new deals secured during this period reached USD 232 million. Additionally, KPIT Technologies expanded its workforce by adding 334 employees during the quarter, bringing the total number of staff to 12,879.

Future Outlook and Strategic Investments

Kishor Patil, Co-founder, CEO and MD of KPIT Technologies, expressed optimism about the latter half of FY26 and into 2027. He highlighted a robust pipeline in Europe driven by OEMs seeking global service partners with innovative capabilities and a preference for Indian suppliers.

Patil also mentioned expected growth in some US accounts, particularly in off-highway commercial vehicle segments. This growth is supported by KPIT’s recent acquisition of CareSoft Engineering Solutions. Furthermore, he noted that significant contributions are anticipated from markets in India and China next year.

The management emphasised ongoing investments in strategic areas such as AI-infused mobility solutions, digital cockpit technologies, autonomous driving, and cybersecurity to enhance client offerings and competitive differentiation.

Acquisition Impact

The integration of Caresoft Global’s Engineering Solutions is expected to contribute fully in the upcoming quarter. KPIT Technologies had acquired Caresoft Globals Engineering Solutions business for a total consideration of up to USD 191 million in May this year.

KPIT Technologies continues to focus on strategic investments that align with its long-term growth vision while navigating short-term challenges due to fluctuating profits from minority investments.

With inputs from PTI