KPIT Technologies reported a 9.4% year-over-year revenue growth in rupee terms for Q3 FY26, with US dollar growth at 3%. The company is pivoting towards solutions-based offerings with a focus on AI to enhance growth and market share. Investments in AI and strategic acquisitions are ongoing to support this transition. The company anticipates improved performance in Q4 and higher growth in FY27.
Financial Performance
KPIT Technologies announced its Q3 FY26 financial results, featuring:
- 9.4% year-over-year revenue growth in rupee terms.
- 3% growth in US dollar terms.
- Constant currency growth of 1.5%.
- EBITDA growth of 6.8%.
- Net profit (excluding one-time Labor Code impact): ₹1.53 billion.
Strategic Shift to Solutions
The company is transitioning towards becoming a solutions-driven organization, leveraging AI and advanced technologies to meet evolving OEM needs. This strategy includes:
- Increasing fixed price revenue mix: 66% versus 59% last year.
- Focus on AI with projects in production programs.
- Partnerships with Microsoft and leading CRM companies for agentic solutions.
Key Growth Drivers and Outlook
KPIT sees positive discussions across key geographies including USA, Europe, India, and China. Specific areas of focus include:
- Digital cockpit solutions.
- Cyber security for connected vehicles.
- Navigation and autopilot systems in China.
Future Expectations
- Improved growth in Q4 FY26, expected to be the highest quarterly growth of the fiscal year.
- Profitability improvement despite ongoing investments.
- Anticipation of higher growth in FY27 compared to FY26.
Source: BSE
