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KPIT Q3 FY26 Earnings Results

KPIT is a global technology company with software solutions that will help mobility leapfrog towards autonomous, clean, smart and connected future. With 13000+ Automobelievers across the globe, specializing in embedded software, AI & Digital solutions, KPIT enables customers accelerate implementation of next generation mobility technologies . With development centers in Europe, USA, Japan, China, Thailand and India 

Q3 FY26 Earnings Results

  • Revenue from Operations: ₹1,617.46 cr, +9.4% YoY, +1.9% QoQ, reflecting continued growth in mobility software services.
  • EBITDA / Operating Profit: Operating profit ₹57.49 cr, +93% YoY, indicating operating leverage despite broader margin pressures.
  • PBT: ₹181.04 cr, -29% YoY due to higher costs and one-off impacts.
  • PAT: ₹133.30 cr, -28.7% YoY (decline driven by a one-time statutory impact from new labour codes ₹59.71 cr).
  • EPS (Diluted): ₹4.87 (vs ₹6.83 in Q3 FY25), reflecting profitability contraction.
  • Other key metrics: TCV (Total Contract Value) wins of USD 202 mn in the quarter, underscoring strong demand pipeline; revenue growth increasingly coming from Off-Highway and Powertrain domains in mobility segments.

Management Commentary & Strategic Decisions

  • Kishor Patil (Co-Founder, CEO & MD) remarked on deeper client partnerships with OEMs seeking end-to-end outcomes and AI-infused mobility solutions, signalling a strategic pivot toward higher-value engineering services and solution offerings.
  • Management highlighted increased traction in trucks and off-highway sub-verticals and integration of Caresoft Group and NDream as key drivers for future growth.
  • Board actions: Approved an interim dividend of ₹2.25 per share for FY26, reflecting confidence in cash flows despite profit headwinds.
  • Strategic emphasis is on transitioning from software-defined vehicles (SDV) to AI-defined mobility platforms, enhancing fixed-price contracts, improving per-person revenue, and strengthening global delivery teams.

Q2 FY26 Earnings Results

  • Revenue from Operations: ₹1,587.71 cr, +7.9% YoY, +~3.2% QoQ, steady topline growth across regions.
  • EBITDA / Operating Margin: 21.1% margin with 8% YoY revenue growth; EBITDA stable.
  • PAT: ₹169.09 cr, -17.0% YoY, impacted by higher staff and operating expenses.
  • EPS: ₹6.22.
  • Other key metrics: Revenue growth led by UK & Europe and Rest of World regions, with new deal wins totaling USD 232 mn and workforce expansion underpinning future delivery capacity.

Management Commentary Q2

  • KPIT’s leadership pointed to strategic investments and acquisitions (e.g., Caresoft, increased NDream stake) bolstering its capabilities in automotive engineering and software, positioning for sustained growth beyond FY26.
  • Management emphasised confidence in a strong H2 and promising FY27, supported by expanding client engagements and deepening the solutions portfolio.
  • Commentary noted continued emphasis on AI-infused mobility technologies, domain expertise expansion, and enhancing delivery outcomes as key long-term strategic priorities.

To view the company’s previous earnings and latest concall transcripts, click here  to visit the Alphastreet India news channel.

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