KPIT Technologies
KPIT Technologies
Information Technology F&OKey Fundamentals
SmallcapComputer Software & ConsultingInformation TechnologyTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
3- Company has delivered good profit growth of 36.8% CAGR over last 5 years
- Company has a good return on equity (ROE) track record: 3 Years ROE 27.1%
- Company has been maintaining a healthy dividend payout of 30.0%
Weaknesses
1- Promoter holding has decreased over last quarter: -0.82%
Growth Rate
AI Analysis — Bull vs Bear
KPIT Technologies, a mid-cap IT services company focused on automotive and mobility engineering, trades at a market cap of ₹15,052 Cr with a PE of 26x. The company has delivered strong 5-year profit CAGR of ~37% and maintained a 3-year ROE of 27%, but recent performance shows deceleration with TTM profit declining 23% and the stock correcting 56% over the past year.
- Strong 5-year compounded profit growth of 37% CAGR demonstrates sustained earnings power in the automotive engineering niche
- 3-year ROE of 27% and 5-year ROE of 26% indicate consistently high capital efficiency well above IT sector averages
- 5-year compounded sales CAGR of 26% reflects robust top-line expansion driven by global automotive software demand
- Healthy dividend payout ratio of 30% with a current dividend yield of 1.36%, signaling shareholder-friendly capital allocation
- PE of 26x is significantly compressed from historical highs following the 56% stock correction in the past year, offering a lower entry multiple relative to the company's own history
- TTM revenue growth of 10% shows the business continues to grow even during the current deceleration phase
- Price-to-book of 4.26x, while not cheap in absolute terms, is modest for a company generating 21%+ ROE, suggesting returns on equity still exceed cost of capital
- 5-year stock CAGR of 11% despite a severe recent drawdown indicates the long-term wealth creation track record remains intact
- TTM compounded profit has declined 23%, a sharp reversal from the 5-year CAGR of 37%, indicating significant earnings deceleration or margin compression
- Stock has fallen 56% over the past 1 year, reflecting a severe loss of market confidence and potential de-rating of the growth premium
- 3-year stock CAGR of -22% suggests the correction is not a short-term blip but a sustained multi-year de-rating trend
- Promoter holding decreased by 0.82% in the last quarter, which may signal reduced insider confidence at current levels
- Last year ROE dropped to 21% from the 3-year average of 27%, a 6 percentage point decline suggesting deteriorating profitability
- Sales growth has decelerated from 24% (3-year CAGR) to 10% TTM, more than halving, raising questions about demand sustainability in the auto engineering vertical
- Debt-to-equity and ROCE data are unavailable, limiting visibility into the company's leverage position and overall capital efficiency
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Net profit down 19% in FY26 Aug 18
FY26 consolidated net profit fell 19.34% to ₹674.94 crore from ₹836.80 crore, with EPS dropping to ₹23.43 from ₹30.93. Gross profit margin stood at 20.81% and net profit margin at 10.45%.
- Q1 FY27 earnings decline sharply Aug 18
June 2026 quarter net profit fell 22.57% QoQ to ₹130.46 crore, while revenue dipped 2.1% QoQ to ₹1,674.99 crore. EPS for the quarter was ₹4.30.
- Global auto slowdown hurts outlook Aug 18
Nirmal Bang maintains Hold with ₹672 target, citing pressure from global automotive slowdown, supply chain issues, and competitive intensity from Chinese OEMs impacting KPIT's revenue and margins.
- Stock falls 2.14% to ₹596.80 Aug 18
Shares declined 2.14% on Aug 12 amid bearish sentiment. The stock trades at ₹591 per Nirmal Bang's report, implying 13.7% upside to their ₹672 target.
- ₹1.23 Cr NCLT delay penalty Aug 27
KPIT Technologies and Birlasoft were fined ₹1.23 crore by the Collector of Stamps for a four-day delay in lodging the NCLT order for their composite scheme of arrangement.
- ₹5.25 final dividend approved Aug 31
Shareholders approved a final dividend of ₹5.25 per share at the AGM on August 31, 2026, in addition to an interim dividend of ₹2.25 per share paid in February 2026, totaling ₹7.50 for FY26.
- FY26 revenue grows 10.48% Aug 18
Consolidated revenue rose 10.48% YoY to ₹6,454.93 crore in FY26 from ₹5,842.35 crore, with a healthy debt-to-equity ratio of 0.13 and return on networth of 17.99%.
- Analyst meetings scheduled Sep 21-22 Sep 11
KPIT Technologies has scheduled back-to-back analyst and investor meetings on September 21 and 22 for direct engagement with the investment community.
- Director pay clarification to IiAS Aug 21
KPIT responded to proxy advisor IiAS's recommendation against reappointing Chinmay Pandit, detailing capped remuneration structures and SEBI compliance.
TL;DR: KPIT Technologies is navigating a difficult period with FY26 net profit down 19% and Q1 FY27 showing further QoQ deterioration in both revenue and earnings, driven by global automotive sector headwinds and Chinese OEM competition. On the positive side, topline growth of 10.48% continues, the balance sheet remains clean at 0.13x debt-to-equity, and the company returned ₹7.50 per share in total dividends for FY26. The trend is deteriorating on profitability despite steady revenue growth, and near-term outlook hinges on whether global OEM spending recovers.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,098 | 1,199 | 1,257 | 1,318 | 1,365 | 1,471 | 1,478 | 1,528 | 1,539 | 1,588 | 1,617 | 1,711 | 1,675 |
| Expenses | 884 | 959 | 998 | 1,045 | 1,077 | 1,174 | 1,172 | 1,205 | 1,244 | 1,290 | 1,306 | 1,394 | 1,418 |
| Operating Profit | 214 | 240 | 259 | 272 | 288 | 297 | 306 | 323 | 295 | 298 | 311 | 317 | 257 |
| OPM % | 19% | 20% | 21% | 21% | 21% | 20% | 21% | 21% | 19% | 19% | 19% | 18% | 15% |
| Other Income | 22 | 9 | 19 | 17 | 54 | 52 | 19 | 60 | 16 | 24 | -26 | 12 | 8 |
| Interest | 14 | 14 | 16 | 12 | 13 | 10 | 10 | 9 | 12 | 16 | 23 | 22 | 23 |
| Depreciation | 45 | 48 | 50 | 53 | 53 | 56 | 58 | 58 | 63 | 75 | 81 | 82 | 83 |
| PBT | 177 | 188 | 212 | 224 | 277 | 283 | 257 | 316 | 236 | 231 | 181 | 225 | 160 |
| Tax % | 24% | 25% | 26% | 26% | 26% | 28% | 27% | 23% | 27% | 27% | 26% | 27% | 27% |
| Net Profit | 134 | 141 | 157 | 166 | 204 | 204 | 187 | 245 | 172 | 169 | 133 | 163 | 116 |
| EPS in Rs | 4.89 | 5.14 | 5.67 | 6 | 7.45 | 7.43 | 6.82 | 8.93 | 6.27 | 6.17 | 4.86 | 5.95 | 4.27 |
Profit & Loss
| Particulars | Mar 2018 3m | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 0 | 641 | 2,156 | 2,036 | 2,432 | 3,365 | 4,872 | 5,842 | 6,455 | 6,591 |
| Expenses | 0 | 550 | 1,866 | 1,729 | 1,994 | 2,732 | 3,881 | 4,613 | 5,235 | 5,408 |
| Operating Profit | 0 | 92 | 290 | 307 | 439 | 633 | 991 | 1,230 | 1,220 | 1,183 |
| OPM % | — | 14% | 13% | 15% | 18% | 19% | 20% | 21% | 19% | 18% |
| Other Income | 0 | 1 | 19 | 21 | 45 | 43 | 60 | 170 | 26 | 18 |
| Interest | 0 | 7 | 20 | 17 | 19 | 32 | 55 | 42 | 74 | 85 |
| Depreciation | 0 | 19 | 108 | 133 | 120 | 146 | 196 | 225 | 301 | 320 |
| PBT | 0 | 67 | 181 | 178 | 345 | 497 | 800 | 1,133 | 872 | 797 |
| Tax % | 0% | 18% | 18% | 17% | 20% | 22% | 25% | 26% | 27% | — |
| Net Profit | 0 | 55 | 148 | 147 | 276 | 387 | 599 | 840 | 637 | 582 |
| EPS in Rs | -27 | 1.98 | 5.38 | 5.33 | 10 | 13.9 | 21.69 | 30.63 | 23.25 | 21.25 |
| Div. Payout % | 0% | 37% | 18% | 28% | 31% | 29% | 31% | 28% | 32% | — |
Balance Sheet
| Particulars | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 0.1 | 268 | 269 | 269 | 270 | 270 | 271 | 272 | 272 |
| Reserves | 0 | 691 | 780 | 938 | 1,040 | 1,381 | 1,875 | 2,640 | 3,269 |
| Borrowings | 0 | 132 | 204 | 230 | 227 | 287 | 329 | 345 | 838 |
| Other Liabilities | 0 | 582 | 384 | 531 | 799 | 1,402 | 1,624 | 1,707 | 2,742 |
| Total Liabilities | 0 | 1,674 | 1,637 | 1,968 | 2,336 | 3,341 | 4,098 | 4,964 | 7,121 |
| Fixed Assets | 0 | 420 | 526 | 577 | 641 | 1,684 | 1,915 | 1,972 | 3,985 |
| CWIP | 0 | 1 | 5 | 12 | 0 | 33 | 58 | 10 | 6 |
| Investments | 0 | 50 | 9 | 127 | 129 | 64 | 94 | 432 | 172 |
| Other Assets | 0 | 1,204 | 1,096 | 1,251 | 1,566 | 1,559 | 2,030 | 2,551 | 2,958 |
| Total Assets | 0 | 1,674 | 1,637 | 1,968 | 2,336 | 3,341 | 4,098 | 4,964 | 7,121 |
Cash Flow
| Particulars | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Operating | 0 | 151 | 389 | 628 | 475 | 462 | 1,002 | 1,390 | 1,195 |
| Investing | 0 | 16 | -136 | -503 | -292 | -167 | -561 | -567 | -1,188 |
| Financing | 0 | 34 | -177 | -115 | -127 | -183 | -240 | -342 | 89 |
| Net Cash Flow | 0 | 201 | 75 | 10 | 56 | 112 | 201 | 480 | 95 |
| Free Cash Flow | 0 | 125 | 321 | 568 | 406 | 335 | 847 | 1,262 | 1,056 |
| CFO/OP | 4 | 185 | 163 | 215 | 129 | 89 | 115 | 130 | 115 |
Ratios
| Particulars | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | — | 337 | 76 | 55 | 56 | 64 | 56 | 56 | 61 |
| Cash Conversion Cycle | — | 337 | 76 | 55 | 56 | 64 | 56 | 56 | 61 |
| Working Capital Days | — | 182 | 29 | -11 | -29 | -28 | -26 | -32 | -74 |
| ROCE % | — | 20% | 18% | 14% | 24% | 30% | 38% | 40% | 26% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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70 extracted metrics + investor summaries across FY08–FY27.
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Company Information
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 [1]
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