KPIT Technologies (KPITTECH) Q2 25/26 earnings summary

Executive summary

• Q2FY26 consolidated revenue grew 7.9% year-over-year and 1.8% sequentially, reaching ₹15,877.11 million, with EBITDA margin at 21.1%.

• Net profit attributable to owners was ₹1,690.87 million, down from ₹2,037.45 million in Q2 FY25, impacted by one-time items, though operational profit remained stable.

• Strategic acquisitions, including Caresoft, OXI SRL Italy, and investments in Helm.ai, are strengthening next-gen mobility capabilities and expanding market reach.

• Robust deal wins, including a $232M TCV and a large European OEM partnership, support medium-term growth.

• Workforce saw a net addition, with 800 added via Caresoft and a reduction of 500 due to talent realignment.

Financial highlights

• Q2FY26 revenue: ₹15,877M, up from ₹14,714M in Q2FY25; total income for the quarter was ₹16,112.90 million.

• EBITDA margin at 21.1%, up from 20.8% year-over-year; EBIT margin at 16.4%; PAT margin at 10.6%.

• Net cash at ₹10,364M after payouts for acquisitions and dividends; cash and cash equivalents at ₹9,272.56 million as of 30 September 2025.

• DSO at 49 days, up from 43 days last quarter, mainly due to acquisitions.

• Other expenses and depreciation increased due to consolidation of Caresoft.

Outlook and guidance

• Management expects flattish to positive constant currency growth in Q3 and meaningful growth in Q4, driven by new deals and improved client sentiment.

• EBITDA margin is expected to remain around 21% despite salary increments.

• Medium-term growth prospects are positive, with investments in new verticals and expansion into China and India.

• Large multi-year, multi-domain deal with a European OEM will ramp up in coming quarters.