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KPKPITTECH

KPIT Technologies Q4 FY26 results (Jan–Mar 2026) and concall

Information Technology · Concall AI · Call held 13 May 2026

Company page: KPIT Technologies share price, financials & guidance record

Source transcript

Management summary

KPIT Technologies reported a strong Q4 FY26 with 1.9% QoQ constant currency growth and healthy EBITDA margins of 20.6%. The company secured $349 million in deal wins and expanded its client base, particularly in the trucks and off-highway segments. Despite headwinds like program delays and AI-led cannibalization, management expressed confidence in achieving sustainable double-digit growth and expanding margins in the medium term, driven by a strategic shift towards solutions, products, and new geographies.

Highlights

  • Strong Q4 FY26 performance with 1.9% QoQ constant currency (USD) growth and 5.8% QoQ INR growth.

  • Closed $349 million worth of increments (deal wins) during the quarter, indicating a satisfactory pipeline.

  • Maintained healthy EBITDA margins at 20.8% for FY26 and 20.6% for Q4, despite significant technology investments (>5% of revenue).

  • Achieved 18% YoY growth in the Trucks and Off-highway segment for FY26, with 11.6% growth in Q4.

  • Successfully added 13 new clients, including 4 truck OEMs and 6 off-highway OEMs, expanding client base beyond traditional T25.

  • Significant progress in shifting to fixed-price/outcome-based models, with over 80% of new contracts being fixed price and a target of 75%+ overall.

Concerns

  • Overall, FY26 was a 'muted growth year' with near-term revenue moderation.

  • AI-led transformation caused near-term cannibalization in some areas.

  • Lower than expected growth in middleware and autonomous driving due to delays in new architecture programs.

  • Program cancellations and delays in a few accounts, including Honda's new platform programs, which had an impact, and a large SDV program causing a 'big drop' in revenue for H1 FY27 (estimated 3-4% of Q4 revenue).

  • Trucking industry experienced a slump in North America and Europe for the last nine months.

  • Drop in Tier 1 revenues, though not a focus area for KPIT.

Key financials

2 periods

Headline

  • Revenue Growth (CC USD)
    1.9%
    QoQ +1.9%
  • Revenue Growth (INR)
    12%
    YoY +12% QoQ +5.8%
  • EBITDA Margin (FY)
    20.8%
  • Cash at Quarter End
    9.6 Bncurrency not stated
  • DSO
    47 days

Q4

  • EBITDA Margin
    20.6%

What they filed

Q4 FY26: revenue up 12.0%, net profit down 33.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26
Revenue1,471 1,478 1,528 1,539 1,588 +8%1,617 +9%1,711 +12%
EBITDA297 306 323 295 298 +0%311 +2%317 −2%
Net profit204 187 245 172 169 −17%133 −29%163 −33%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Trucks and Off-highway
    18% YoY Growth (FY26)11.6% QoQ Growth (Q4 FY26)
  • Cloud-based Connected Services
    — Q4 Growth Driver
  • Pass Car Business
    75% Share of Total Business

Order book

high confidence

Inflow this quarter

$349 Mn

Composition

  • Products and Solutions (service line) 21%

Pipeline

deal pipeline tcv

Pipeline continues to be satisfactory, with 21% already in products and solutions.

Cancellations & deferrals

  • cancelled: Honda cancelled all their new platform programs, impacting KPIT.
  • cancelled: Program cancellation and delays in a few accounts challenged near-term growth.
  • ending program: One of two largest SDV programs ending, causing a 3-4% revenue drop in Q1 FY27.
Pipeline continues to be satisfactory, with a significant portion already in products and solutions, indicating a strategic pivot.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Investment in Technology 5 %
    • Investment in R&D 5 %
    Kishor Patil: "Most of the companies have less than 1% investment into technology We have done more than 3% for many years. We have upped the investments more than 5%." and "Continued investment in R&D, 5%, which I said, which is on top of this."
  • Dividend ₹5.25/share (final) Payout ratio 33%
    Kishor Patil: "dividend payout after dividend payout, it is 9.6 billion cash at the quarter end, and we have the final dividend, which is 5.25 per share. DSO stood at 47 days. Dividend is about 33% Kind of a payout"
  • M&A Caresoft Acquisition · Integrated

    To address OEM pain point of cost reduction, beyond software, focusing on vehicle engineering and software benchmarking.

    Kishor Patil: "The vehicle engineering, this, I wanted to bring it out. This is a different part of the acquisition we did in the Caresoft You know, last year. That actually we doubled down on that, beyond software, the reason is We wanted to make sure that we are in a position to address one of the key point of pain for our OEMs, which is cost reduction"
  • M&A Helm.ai Investment · Ongoing

    To build expertise in after-sales integration and solutions.

    Kishor Patil: "We made one investment into another company in California, right, Helm last year. I mean, it's a small investment, but the idea is actually to build this kind of expertise."
  • M&A Cymotive Acquisition · Integrated

    To gain a cybersecurity solution for vehicles, a proactive strategic investment across the red chip to cloud stack.

    Kishor Patil: "And recent is the cybersecurity Cymotive. Again, it's a... we believe that what was important to us is having a cybersecurity solution in the vehicle which is being used, multiple vehicles, millions of vehicles."
  • M&A Strategic External Investments Investment · Ongoing · Consideration ₹[object Object] (undisclosed)

    To become the most preferred partner by investing in technology beyond internal R&D.

    Kishor Patil: "We have made strategic external investment of$ 400 million in M&AS, and I will tell you later how it actually stacks, create the full stack story, and how the technology investment is. So this is beyond the 5% I talk about This is... so if you really... these are not included into the investments we have made into technology, and that makes us really the most preferred partner"
  • M&A Hero Motors Partnership · Signed

    To gain firsthand experience in micromobility in India.

    Sachin Tikekar: "We signed a partnership with Hero Motors recently, and that's our great way of really getting a firsthand feel for what does this look like and how we can take it to others in India and beyond."
  • Liquidity Cash $9.6 Bn
    Kishor Patil: "it is 9.6 billion cash at the quarter end"

Guidance & targets

Revenue Growth

  • Solutions and Products Revenue Growth Revenue Growth · over the period · High confidence 30%+

    From 20-25% today

    Kishor Patil: "We believe this growth, we expect to be 30% on this, even though it's a small part, as we said, initially we start with 20 25%. We'll grow with 30% plus growth rate in these solutions and products"

    — Kishor Patil

Profitability

  • EBITDA Margin Profitability · FY27 · High confidence 20.5-21.2%
    Kishor Patil: "it will drive profitability EBITDA 20.5 to 21.2 post increasing investment in Al solutions and products competency development and new markets."

    — Kishor Patil

  • EBITDA Margin Profitability · medium term · High confidence 22-24%
    Kishor Patil: "So we expect the EBITDA to be between 22% to 24% from where we are today."

    — Kishor Patil

Revenue Composition

  • Solution and Product Revenue Share Revenue Composition · in 3 years · High confidence 60%

    From 15% (FY26) today

    Kishor Patil: "the revenue part, which is in FY26, which is 85% of our, this 15% is solution and product, which will move to 60% in 3 years."

    — Kishor Patil

Client Mining

  • Wallet Share (Top 25 clients) Client Mining · this year (FY27) · High confidence 15-20%

    From 10-12% (FY26) today

    Sachin Tikekar: "overall wallet share of KPIT among our top 25 clients is about 10% as of last year. That we grew by 10% to 12% year-on-year Now, the goal for this year is whether we can push that up to more than 15 to 20%."

    — Sachin Tikekar

Contract Type

  • Fixed Price/Outcome-Based Contracts (Overall) Contract Type · next quarter · High confidence 75%+
    Sachin Tikekar: "converting four of our largest clients in that model in this quarter, and we'll take the next four in the next quarter. And that will pretty much take us north of 75% overall, in terms of having outcome-based and fixed price"

    — Sachin Tikekar

Revenue

  • Solutions and Products Revenue Revenue · in 3 years · High confidence $550-600 million

    From $110 million (current) today

    Soumitra Chatterjee: "We are targeting around 550 to 600 million from the solutions and products. And we are currently at about 110 odd million. Roughly, we will grow 30% this year, but for the next two years or next three years, in that case, the number will have to grow up 3 to 4X is the understanding correct?" Kishor Patil: "Yeah, absolutely. I think there are two things to it... we believe that's a very reasonable number."

    — Soumitra Chatterjee (analyst) & Kishor Patil

ESG

  • Carbon Footprint Reduction ESG · by 2030 · High confidence 40%+
    Sachin Tikekar: "there is an important milestone that we will hit in 2030, which is reducing our own carbon footprint by more than 40%."

    — Sachin Tikekar

  • Net-Zero Organization ESG · by 2050 · High confidence Net-zero
    Sachin Tikekar: "we are committed to being a net- zero organization by 2050."

    — Sachin Tikekar

Market context

  • Annualized Sustainable Revenue Growth Revenue Growth · future · Medium confidence Double-digit
    Kishor Patil: "We have opportunity for annualized sustainable double-digit growth."

    — Kishor Patil

What to watch in Q1 FY27

Q1 FY27 Revenue Impact from SDV Program

next quarter
Current Estimated 3-4% drop in Q1 FY27 revenue relative to Q4 FY26
Target Actual Q1 FY27 revenue and commentary on the impact of the large SDV program ending

Why it matters

This is a confirmed near-term headwind that will directly affect Q1 FY27 financial performance.

Kishor Patil: "this was a big program, this is a big drop for us for the first half of the year, and that will be a significant part for us, so you know the calculations, right? If it is a 4%, what, the 3 to 4% if you look at our quarter revenue."

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Risks & concerns

  • Program cancellations and delays

    high

    Program cancellations (e.g., Honda's new platform programs) and delays in a few accounts challenged near-term growth, with one large SDV program causing a 3-4% revenue drop in Q1 FY27.

    Management acknowledged

  • AI-led transformation causing cannibalization

    medium

    AI-led transformation is leading to near-term cannibalization in some areas, though long-term opportunity is larger.

    Management acknowledged

  • Delayed new architecture programs

    medium

    Many new architecture programs have been delayed, leading to lower than expected growth in middleware and autonomous driving.

    Management acknowledged

  • Trucking industry slump

    medium

    The trucking industry in North America and Europe has been in a slump for the last nine months, impacting growth in that segment.

    Management acknowledged

  • Geopolitical conflicts and EV policy changes

    medium

    Tariff and geopolitical conflicts, EV policy changes in US and Europe, and supply chain disruptions are creating market uncertainty.

    Management acknowledged

  • Competition from Chinese software stack providers

    medium

    Chinese specialists with high R&D investments and global ambitions pose a potential threat in the software stack domain.

    Analyst acknowledged

  • Japanese OEMs losing market share/struggling to adapt

    medium

    Japanese OEMs like Nissan and Honda are in trouble, and Toyota could face issues if it doesn't adapt to new market realities, creating both risk and opportunity for KPIT.

    Analyst acknowledged

  • Client cost rationalization impacting R&D spend

    medium

    OEMs are focused on rationalizing costs and creating funds for future programs, which could impact R&D spend, though KPIT aims to provide cost-effective solutions.

    Analyst acknowledged

Q&A highlights

7 direct
Impact of Program Cancellations/Delays on FY27 Growth Direct
Kishor Patil: "this was a big program, this is a big drop for us for the first half of the year, and that will be a significant part for us, so you know the calculations, right? If it is a 4%, what, the 3 to 4% if you look at our quarter revenue.

Management confirmed a significant revenue impact (3-4% of Q4 revenue) in H1 FY27 due to a large program ending, clarifying a key near-term headwind.

Asked by Chandramouli Muthiah

Drivers of 22-24% EBITDA Margin Target Direct
Kishor Patil: "The products typically the gross margins will be much higher. The solutions, also the margins will be higher because we will have our own I would say we call it PTS. We have the assets, reusable assets, along with the Al infused solutions. We will be in a position to really improve our margins substantially.

Management detailed the strategic levers for margin expansion, emphasizing higher-margin products/solutions, fixed-price models, and internal AI for efficiency, providing clarity on future profitability drivers.

Asked by Chandramouli Muthiah

India & China Revenue Contribution Direct
Kishor Patil: "Right now, we are about 4% of our revenues are from India and they will increase substantially." and "We would not like to talk about that, but it is similar to India

Management quantified India's current revenue share at 4% and indicated China's share is similar, highlighting these as key growth geographies with substantial future potential.

Asked by Vimal Gohil

Japanese OEMs' Strategy & KPIT's Opportunity Direct
Sachin Tikekar: "Toyota... They're still the biggest... most backward Right? So that says something about it. So they do have a little bit of a runway. You know, before they start to lose market share in the bigger markets. I'm talking about globally, it's about India, generally speaking. So, now, I think there is an opportunity For us to help someone like Toyota rapidly get on to the SDV journey, and also get into multiple powertrains

Management provided a nuanced view of Japanese OEMs' challenges and KPIT's strategic opportunity to assist them in SDV and powertrain transitions, especially for those lagging in new tech adoption.

Asked by Hiren Ved

Chinese Competition in Solutions/Products Partial
Sachin Tikekar: "software stack is concerned, that's where the exposure could be Yes, potential threat, but I think we're going to take them head on. And that's why, you know, Anup presented the V-Cycle and the solutions that we are building. We think that they are a lot more robust, and they are actually localized in different markets where Chinese have not don't have the same kind of experience.

Analyst raised a concern about Chinese ER&D specialists, and management acknowledged the potential threat from Chinese software stacks while asserting KPIT's differentiation through robust, localized solutions and integration expertise.

Asked by Vimal Gohil

Solutions & Products Revenue Target (3-4x growth) Direct
Soumitra Chatterjee: "We are targeting around 550 to 600 million from the solutions and products. And we are currently at about 110 odd million. Roughly, we will grow 30% this year, but for the next two years or next three years, in that case, the number will have to grow up 3 to 4X is the understanding correct?" Kishor Patil: "Yeah, absolutely... we believe that's a very reasonable number.

Management confirmed an ambitious target of $550-600 million in solutions and products revenue within 3 years, representing a 3-4x growth from the current $110 million, signaling a significant strategic pivot and growth driver.

Asked by Soumitra Chatterjee

Cymotive Acquisition & Cariad Impact Direct
Kishor Patil: "I think on the Cariad side, I think it is the same cost issue. They've moved their strategies to move to India most of the work. They're already into multi-million vehicles, they find it a great Win-win because KPIT is their trusted partner.

Management clarified the rationale behind the Cymotive acquisition (cybersecurity expertise) and its strategic importance, especially in the context of Cariad's challenges and KPIT's role as a trusted partner.

Asked by Moez Chandani

European Assets for Sale & Mechanical Engineering Focus Direct
Kishor Patil: "I think You look at their performance, most of these companies are struggling both in terms of revenue and this, having so many employees in that part of the world with the less than 35 hours a week With that kind of a cost is a liability... disruptions which are coming and the kind of products and solutions we are bringing, they're far superior to what these companies have.

Management explained why they are not interested in struggling European assets, emphasizing their focus on superior products/solutions and the strategic importance of mechanical engineering (via Caresoft) for cost reduction and manufacturing efficiency.

Asked by Kawaljeet Saluja

3 min read 7 chapters

Detailed narrative

Q4 FY26 Performance and FY26 Overview

KPIT Technologies reported a 'muted growth year' overall but concluded Q4 FY26 with a strong performance, achieving 1.9% QoQ constant currency growth in USD and 5.8% QoQ growth in INR. For the full fiscal year, revenue grew 12% in INR.

The company maintained robust profitability with an EBITDA margin of 20.8% for FY26 and 20.6% for Q4, despite significant investments in technology and R&D exceeding 5% of revenue. Deal wins for the quarter totaled $349 million, contributing to a satisfactory pipeline.

Strategic Pivot to Solutions and Products

KPIT is undergoing a strategic pivot towards solutions and products, which currently constitute 21% of its pipeline and are targeted to reach 60% of revenue in the next three years. Management expects these offerings to drive over 30% YoY revenue growth.

This shift is also intended to enhance profitability, with products and AI-infused solutions yielding higher gross margins and contributing to an EBITDA margin target of 22-24% in the medium term. The company aims for $550-600 million in solutions and products revenue within three years, a 3-4x increase from the current $110 million.

Market Trends and Headwinds

The company acknowledged several market headwinds, including near-term cannibalization from AI-led transformation, delayed new architecture programs impacting middleware and autonomous driving growth, and program cancellations/delays in key accounts (e.g., Honda's new platform programs). The trucking industry also experienced a 9-month slump in North America and Europe.

Geopolitical conflicts, EV policy changes, and supply chain disruptions continue to create an uncertain environment, though management anticipates a pickup in the truck business in H2 2026.

Geographic and Segment Expansion

KPIT is actively expanding its geographic footprint and diversifying its segment mix. India currently contributes about 4% of revenue, with China being similar, and both are targeted for substantial growth, potentially becoming top markets in the next 10 years. The company successfully added 13 new clients, including 4 truck OEMs and 6 off-highway OEMs, and is reviving its focus on micromobility, particularly in India, with a new partnership with Hero Motors.

The T25 client strategy is evolving into a 'T40' to balance revenue across passenger car, trucks, and off-highway segments.

Technology Moat and AI Strategy

KPIT emphasizes its technology moat, built on deep expertise in automotive software integration and AI. The 'Beacon' product, an AI-first development for automotive mobility intelligence, is central to addressing large-scale, complex problems for OEMs. The company is investing heavily in AI, with 5% of revenue dedicated to R&D, and is building core technology, core stacks, and fostering an ecosystem of complementary partners.

This includes strategic investments in companies like Helm.ai for after-sales and the acquisition of Cymotive for cybersecurity solutions.

Client Engagement and Business Model Transformation

The company is deepening engagement with its top 25 clients, aiming to increase wallet share from 10-12% (FY26) to 15-20% (FY27). A significant shift is underway towards fixed-price and outcome-based contracts, with over 80% of new contracts already in this model.

KPIT plans to convert four more large clients to this model next quarter, targeting over 75% of overall contracts to be outcome-based. This approach helps clients achieve faster, cheaper, and more reliable production programs while improving KPIT's margins and ownership.

Capital Allocation and ESG Commitments

KPIT maintains a strong cash position with $9.6 billion at quarter-end. The company declared a final dividend of Rs 5.25 per share, representing a 33% payout ratio. Capital allocation prioritizes strategic investments in technology and R&D, with over 5% of revenue dedicated to these areas, including a $400 million strategic external investment in M&As.

On the ESG front, KPIT is committed to reducing its carbon footprint by over 40% by 2030 and achieving net-zero emissions by 2050, aligning its business model with sustainability goals.

Summary of a publicly available earnings call transcript; see how call summaries are prepared. Not investment advice.