KPIT Technologies announced its financial results for the second quarter of fiscal year 2027. The company reported a year-on-year growth of 6.5% in rupee terms, with a 0.5% quarter-on-quarter growth in constant currency. Key growth drivers included the off-highway and commercial vehicles segment, which saw a 27% year-on-year increase. EBITDA margins improved to 17.8%. The company also highlighted progress in its AI-native product development and new adjacencies like Energytech and Deep tech.
KPIT Technologies Reports Q2 FY27 Results
KPIT Technologies has announced its financial performance for the second quarter of Fiscal Year 2027, concluding on September 30, 2026. The company reported a 6.5% year-on-year growth in revenue in rupee terms, with a 1% quarter-on-quarter increase. In constant currency (CC) terms, the growth was 0.5% quarter-on-quarter and 0.2% year-on-year, which was in line with expectations.
Segment Performance Highlights
The off-highway and Commercial vehicles segment emerged as a significant growth driver, expanding by 27% year-on-year and 17.6% quarter-on-quarter. Conversely, the passenger car segment experienced a decline of 8% year-on-year and 4% sequentially, attributed to the impact from two top accounts. The company noted that its Products business showed robust growth, up 5% quarter-on-quarter and 25% year-on-year.
Profitability and Investments
Profitability saw an improvement, with EBITDA growing from 17.2% to 17.8%, a 60 basis point increase. This was partly due to a higher contribution from the Products business. The company continues to invest in technology and R&D, with investments increasing by a couple of million dollars during the quarter. Net cash stood at approximately INR 6.2 billion, impacted by a dividend payment of INR 1.4 billion and an acquisition payment for Cymotive.
Strategic Focus and Outlook
KPIT Technologies emphasized its strategic focus on AI-native solutions and its ‘Beacon’ product. The company is also exploring new adjacencies in Energytech and Deep tech. Management expressed confidence in the midterm growth prospects, anticipating a gradual recovery and growth from the impacted segments in the coming quarters. The company aims to build on its strengths in the evolving automotive software landscape, including software-defined vehicles (SDV) and AI-defined vehicles (AIDV).
Key Financial Metrics Summary
- Revenue Growth (YoY, Rupee): 6.5%
- Revenue Growth (QoQ, CC): 0.5%
- Off-highway & Commercial Vehicles Growth (YoY): 27%
- EBITDA Margin: 17.8% (up from 17.2%)
- Net Cash: ~INR 6.2 billion
Source: BSE
