KPIT Technologies (KPITTECH) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue grew 9.4% year-over-year, with constant currency growth at 1.5%, led by Off-Highway, Powertrain, and Diagnostics segments.

• EBITDA increased 6.8% YoY, with net profit at ₹1,334 million, impacted by a one-time statutory wage code expense of ₹597 million.

• Organic growth was slightly negative, with Europe and off-highway commercial segments contributing to growth.

• Transitioning business model from services to solutions, with a focus on AI, strategic partnerships, and leadership additions.

• Strong deal wins of $202 million, including strategic partnerships and expansion into new markets.

Financial highlights

• Consolidated revenue from operations for Q3 FY26 was ₹16,174.59 million, up from ₹14,779.58 million in Q3 FY25.

• Net profit for Q3 FY26 was ₹1,334.10 million, down from ₹1,869.70 million in Q3 FY25, due to a one-time wage code impact.

• EBITDA margin stood at 20.6%, with EBIT margin at 15.6% and PAT margin at 8.2%.

• Net cash at quarter end was ₹9.0 billion after payouts for Caresoft and N-Dream acquisitions.

• Interim dividend of ₹2.25 per share declared for FY 2025-26.

Outlook and guidance

• Q4 expected to deliver the highest growth and improved profitability for the year.

• FY27 growth anticipated to be higher than FY26, with continued investments in solutions, AI, and expansion into new geographies.

• Transition to solutions-led business and AI adoption expected to drive higher quality growth and margins.