KPIT Technologies (KPITTECH) Q1 25/26 earnings summary

Executive summary

• Q1FY26 revenue grew to ₹15,387.61 million, up from ₹13,646.30 million in Q1FY25, with 12.8% YoY growth in INR and 8% in USD; EBITDA margin stable at 21% and $241 million in new deal wins, mainly in powertrain and connected segments.

• Net profit for Q1FY26 was ₹1,718.99 million, impacted by the absence of prior one-time income and currency changes, and down 17.2% QoQ.

• Fixed-price projects increased to 62.5% of revenue, supporting a more efficient business model.

• Management expects growth momentum in H2 FY26, driven by large deal wins, T25 clients, and expansion in India and China.

• The Board approved the acquisition of Caresoft Entities to enhance offerings in automotive benchmarking and cost reduction.

Financial highlights

• Q1FY26 consolidated total income was ₹15,547.21 million, with EBITDA at ₹3,239 million and EBIT margin at 17.0%.

• PAT margin was 11.2%, and net cash position increased to ₹16,220 million; DSO at 45 days.

• 20 consecutive quarters of revenue and EBITDA growth.

• Other income was negative ₹81 million due to forex losses.

• Headcount at 12,545, with productivity gains from higher fixed-price project share.

Outlook and guidance

• H1 expected to remain uncertain, with growth momentum anticipated in H2 FY26 as macro and tariff uncertainties settle.

• Growth in India and China expected to become meaningful over the next two years, with new programs ramping up from Q3.

• No specific multi-year revenue guidance provided until market conditions stabilize.

• The Caresoft acquisition is expected to augment growth in the Trucks and Off-highway segment and accelerate entry into the China market.