KPIT Tech Q2 Profit Down 17%, Revenue Up 8%

New Delhi, Nov 10 (PTI) Auto industry-focused KPIT Technologies reported a 17 per cent decline in its net profit to Rs 169.08 crore for the September-ended quarter, hit by losses in joint ventures and associated companies.

The Pune-headquartered company had posted a profit of Rs 203.7 crore in the year-ago period, according to a regulatory filing.

The company's revenue from operations increased by 7.9 per cent to Rs 1,587.71 crore in Q2 FY26, as compared to Rs 1,471.41 crore in Q2 FY25.

On a quarter-on-quarter basis, profit declined by 1.6 per cent while revenue rose by 3.18 per cent.

KPIT reported a net profit decline, mainly due to losses absorbed from “minority investments” in product and solutions companies, which are currently in investment phases and exhibit quarterly profit variability. Excluding these losses, the company's net profit stands higher at Rs 191.8 crore for the quarter, according to company CFO Priya Hardikar.

“We are investing in product companies. We do see growth coming from those companies in the times to come. Because they are product and solutions companies, their quarterly rhythm is not linear. In this current quarter, we see a dip in their profits, and therefore, our share to pick up those losses has been high. But operationally, our profits have increased,” she noted during the company's earnings call.

The company's TCV (total contract value) for new deals won during the quarter under review stood at USD 232 million.

KPIT Technologies added 334 employees during the quarter, bringing its total staff count to 12,879.

Kishor Patil, Co-founder, CEO and MD of KPIT, expressed optimism about the second half of FY26 and 2027, citing a strong pipeline in Europe driven by OEMs seeking global service partners with innovative capabilities and a preference for Indian suppliers.

He also noted anticipated growth returning in some US accounts, particularly in off-highway commercial vehicle segments, supported by KPIT's recent acquisition of CareSoft Engineering Solutions.

Additionally, Patil said the company expects meaningful contributions from markets in India and China in the coming year. The management highlighted continued investments in strategic areas such as AI-infused mobility solutions, digital cockpit technologies, autonomous driving, and cybersecurity to enhance client offerings and competitive differentiation.

The integration of Caresoft Global's Engineering Solutions is anticipated to contribute fully in the next quarter. KPIT Technologies had acquired Caresoft Global's Engineering Solutions business for a total consideration of up to USD 191 million in May this year.