KPITTECHNSENovember 17, 2025

KPIT Technologies Limited

8,846words
137turns
15analyst exchanges
6executives
Management on call
Kishor Patil
CO-FOUNDER, CHIEF EXECUTIVE OFFICER AND MANAGING DIRECTOR
Sachin Tikekar
PRESIDENT & JOINT MANAGING DIRECTOR
Anup Sable
CHIEF TECHNOLOGY OFFICER & BOARD MEMBER
Priyamvada Hardikar
CHIEF FINANCIAL OFFICER
Sunil Phansalkar
VP (CF&G) &HEAD INVESTOR RELATIONS
Rahul Jain
DOLAT CAPITAL MARKETS LIMITED
Key numbers — 28 extracted
4.4%
rter 2 results for FY '26. As you might have seen, the overall year-on-year dollar revenue grew 4.4% and constant currency revenue grew by 0.4%. Quarter-on-quarter growth has been 1.8% in dollar ter
0.4%
ave seen, the overall year-on-year dollar revenue grew 4.4% and constant currency revenue grew by 0.4%. Quarter-on-quarter growth has been 1.8% in dollar terms and 0.3% in terms of constant currency
1.8%
evenue grew 4.4% and constant currency revenue grew by 0.4%. Quarter-on-quarter growth has been 1.8% in dollar terms and 0.3% in terms of constant currency. In Organic terms , there has been a degro
0.3%
nstant currency revenue grew by 0.4%. Quarter-on-quarter growth has been 1.8% in dollar terms and 0.3% in terms of constant currency. In Organic terms , there has been a degrowth of 0.8% in dollar t
0.8%
lar terms and 0.3% in terms of constant currency. In Organic terms , there has been a degrowth of 0.8% in dollar terms and negative 2.3% in constant currency terms. The EBITDA margin stood at 21.1%.
2.3%
stant currency. In Organic terms , there has been a degrowth of 0.8% in dollar terms and negative 2.3% in constant currency terms. The EBITDA margin stood at 21.1%. To give some co
21.1%
f 0.8% in dollar terms and negative 2.3% in constant currency terms. The EBITDA margin stood at 21.1%. To give some color to the growth, I wanted to take some time and explain to
65 million
So, I would take a moment to explain that. See, I want to bring that out that there has been a $65 million reduction in the revenue over time for us. And it has two compositions. One is roughly about $4
45 million
n reduction in the revenue over time for us. And it has two compositions. One is roughly about $45 million, which is basically when the customers deprioritize their spend from the old programs or move to
20 million
e part where the companies actually reduce their overall spend on engineering. Another roughly $20 million kind of revenue got cannibalized, mainly because we came out with a different solution and provid
18%
lient and take full ownership. This kind of revenue we have more than doubled in the last year to 18% of our overall revenues. And that has also helped us improve profitability. And that is why we
21%
d we are very confident that what we have talked about, that we will be in a position to maintain 21% EBITDA for the full year.. That would be considering the fact that we will be giving increments,
Advertisement
Guidance — 20 items
Kishor Patil
opening
“And we are very confident that what we have talked about, that we will be in a position to maintain 21% EBITDA for the full year..”
Kishor Patil
opening
“That would be considering the fact that we will be giving increments, some in next quarter and some in the quarter after.”
Kishor Patil
opening
“So, after giving that, I think we will be in a position to maintain our EBITDA margins at 21% for the whole year.”
Kishor Patil
opening
“And wherever we believe that such competencies cannot be achieved by a certain set of people, we are making sure that all our people, including project management as well as the front-ending people, are technical and get trained well on these competencies.”
Kishor Patil
opening
“So, next quarter, we will again see some revenues.”
Kishor Patil
opening
“And because of that, there will be certain delay in the realization of this revenue in some of these areas.”
Kishor Patil
opening
“But all of this will largely come down significantly in next quarter and the quarter after.”
Kishor Patil
opening
“We believe that in the Quarter 3, we will be in a position to have a flattish to positive organic constant currency growth and while absorbing the expenses like increments, etc., we will be still around the similar EBITDA margins.”
Kishor Patil
opening
“In terms of Quarter 4, we do believe that there will be a meaningful growth, which will be coming in.”
Kishor Patil
opening
“And we believe that it will be mainly on account of the areas which I mentioned earlier.”
Risks & concerns — 6 flagged
I just want to understand when growth slows, when growth slows down or costs go up, how do you manage to keep the profitability stable and are there any smart ways you are building into your system like delivery design or automation or any other kind of things that will help you stay efficient without cutting any corners or taking any pressure?
— Sucrit D. Patil
And as you have seen that we are probably one of the only companies who have been in a position to manage this kind of margins in this uncertain world.
— Kishor Patil
US, there is some marginal decline, but obviously I am assuming there will be some Caresoft delta there.
— Nitin
I would be cautious right now, but I will give you more color on this by end of Q4 only, By that time, I think some of the uncertainties would be less.
— Kishor Patil
And do you see a change in the timelines of, say, what they were initially planning before this slowdown, the electrification timeline or the timelines of how a particular product development would take place?
— Ankur Pant
So, if it is just to get it correct, a decline in the EV concentration would not impact your revenues to a larger extent.
— Sushovan
Advertisement
Q&A — 15 exchanges
Q
Good evening to the team. I have two questions. My first question is to Mr. Patil. As more tech players enter the software space, what is KPIT doing to build a strong edge not just through client wins or platform launches, but something deeper like a way of working or thinking that grows over time? And makes it hard for your competitors to copy yours? Thank you.
Kishor Patil
I think the point you mentioned, I think we believe that there are 2 -3 points that I have. One is that we knew about software defined vehicles, which a lot of people use the word but KPIT has been pioneering that and has the largest number of programs. I still believe it is a meaningful part where clients have multiple years to get there. Not only that, it has become more important because of the introduction of AI and multiple technologies specifically in autonomous area. And with some of these investments, we believe that we will be in a position to maintain our leadership. The second area
Q
Yes. Hi. Good evening. Thank you for the opportunity. So, you gave a very detailed color on the revenue impact. Just wanted your thought process on how do you see this, when do you see this reprioritization sort of impact sort of reducing? I understand, because of obviously all these trade tariffs and all of that it would have meaningfully changed priorities. Do you think a lot of the impact has already happened and we should start seeing that come off? How should we think about it broadly? How are you thinking?
Kishor Patil
Yes. So, thanks, Nitin. I think one thing I have that from next quarter we will start seeing marginal growth on constant currency terms and in Q4 there will be meaningful growth. I do believe that there will be a certain cannibalization which may continue to happen next year as well. But I think our revenue growth based on the solutions will be higher than that. That is how I would put it. Because it is not about just reduction of the spend by the client, which may, if you ask me, may really get more stabilized in next couple of quarters. But the AI-led solutions which we are ourselves bringin
Q
Hi, thank you. So, first question is, Kishor, you did speak that the client conversations are moving in a positive direction. But when you think about the pace of recovery over the next quarter, how should we think? Because 3Q could be flattish. 4Q itself could be like a very good growth quarter. But does that growth momentum continue going into next year or will it be more like a gradual recovery we should expect over the next 12 months?
Kishor Patil
I would be cautious right now, but I will give you more color on this by end of Q4 only, By that time, I think some of the uncertainties would be less. I would see that it will be a meaningful growth, but it would not be like a hockey stick recovery in the year. Okay, got it. The second question is on this large deal engagement with European OEM. Any color in terms of what could be the size of this engagement? When does it start to run? When does it reach peak revenues? So, we have started working on the projects. I have mentioned in the current wins also there is some part of it and naturally
Q
Hi, good evening. Sir, my first question is on our initiatives on the sodium ion technology with Trentar. So, how is it going on, sir? And also on the hydrogen cell side, what are the latest updates? So, we are seeing like various things are happening in these areas, particularly the staff are getting shifted and hiring are being done. So, I just wanted to understand, where are we at present? And when can we expect these areas to start contributing to our top line in a material basis? So, that is my first question.
Kishor Patil
See, basically, when we talked about the battery and sodium-ion, we have licensed them. If you remember, the buyer investment will be substantial. In phases, they will reach up to 250 million, not in the first phase, but in phases over the next two to three years. That is the investment they will make. So, the meaningful production will start after two years. And that is when we start getting the royalties. I think I had explained that when we made that investment. I would say that the hydrogen and some of these are at early stages. We do have certain pilots and those kinds of projects may com
Q
Hi, good evening and thank you for taking my questions. My question is just around the share of profit and loss from associates. So, you did explain that there are some onetime expenses there, which has caused the number to be higher than normal. So, the usual share of loss from associates we see is around Rs. 4-Rs. 5 crores per quarter. This quarter seems to be close to Rs. 23 crores. So, I just want to understand if you could size out for that, how much of that is one-off and onetime and then how much of that sort of what would be the potential sustainable run rate could be there going forwa
Kishor Patil
I think we have mentioned that that the one-time is about Rs. 6 crores. And this time there were no major revenues in the Qorix books, which got postponed to the next quarter to some extent. The revenues there are cyclical in nature. See, one thing I want to tell you that the investments which we are making in some of these companies, I think this will really move us from services to solutions to products. And in that transformation, while we believe that we have been in a position to do a good job, there are certain investments in the initial phases and the revenues can be small, I would say,
Q
Yes, thank you for the opportunity, sir. Just wanted to check on or double down on the plans for China. Any movement there? When could we possibly see some small, even a small contribution from there in terms of our revenues? That is point number one. The second point is a question in terms of the industry in general, we have seen General Motors do away with Android and Apple CarPlay in their infotainment system and move towards their own platform, which is called Ultify. Do you see some of these OEMs moving towards a similar trend? This is, of course, because of privacy concerns, data securit
Kishor Patil
So, let me just answer the first question on China. I think we are making good progress. And as I mentioned, we are looking at China in 2-3 ways. One is really learning from them and investing into technologies proactively, which you are seeing. That is exactly what we are doing. The second thing is engaging with the clients, which are global clients in China and third is Chinese clients in China . We are seeing progress in all these three and we believe small revenues will occur in quarter 4. On the technology side, I would request Anup, our CTO to take it. Yes, the question about like GM has
Q
Hi. Thanks for taking my question. My first question is on the deal. Give me some clarification, so your three-digit multimillion-dollar deal, is that included in this quarter's TCV?
Sunil Phansalkar
Ankur, as we said, only a very small portion of it is included in the deal wins that were mentioned in this quarter. New engagements under this will keep happening in the coming quarters. So, a very small portion is included in this quarter. Sure. And when do we expect the ramp-up of this deal? So, as we said earlier, we have already started working on it and we'll have ramp-ups coming up in the next quarter and the following quarter. Okay. And my third question is, on the trajectory that we have highlighted for 2H, we expect a spike in revenues in 4Q. Is that coming on the back of an improvem
Q
Thanks for the opportunity. Sir the first question, generally, if I look at the TCV which we disclosed, the second half is generally heavier in terms of TCV wins for KPIT versus first half. Do you believe the same trend may continue this year or do you believe because of macro decision making delays can lead to a normalized trend over all four quarters rather than second half heavy than the first half?
Kishor Patil
I do not know. I mean, if you are asking me what will be the deal wins next quarter, I cannot answer it directly. But I can only say that what we have, the total wins and the pipeline is pretty strong. Our focus is on conversion and whatever we have won now to really get into implementation. Okay. And sir, the explanation which you gave on $65 million revenue leakage, can you correlate with which period it was in terms of last year, this year, how, what is that definition? So, first, it was not leakage. It was basically what the client stopped spending. That was the large part of it, which was
Q
Yes. Hi. I just wanted to ask about the KSAR Classic and KSAR Adaptive. Also your product platforms that are there that are modular or customizable. How are they scaling from client to client?
Anup Sable
Both the products have been moved as an IP to Qorix. So, Qorix is now managing these products and product sales to our customers right now. So, we are not really accounting them in our KPIT revenues or costs at the moment.. Qorix roadmap is about supporting the two current products which are KSAR Adaptive and KSAR Classic. KSAR Classic has been there for quite some time. KSAR Adaptive is for the service-oriented architecture and adaptive version of Autosar. There is also a third product that Qorix is introducing, which is called the Performance Stack, which is a more optimized version of KSAR
Q
Yes.. Thank you for the opportunity. I have two questions. First, you have clearly demonstrated progress on profitability led by what you call the solution as well as the AI effort and productivity. Given the current context where growth is likely soft, can you elaborate how you plan or what is our strategy to reinvest these efficiency benefits? Do we see continued margin expansion? Or you would think to prioritize in adjacencies, investments that you have been highlighting to us?
Kishor Patil
I think we would do both. Of course, the current organization and the front end as well as the practices are all geared for the current business and the expanded business into off-highway and commercial. So, we have the organization, we have the focus and we have the clients. So, we will double down on that. Just looking at the future expansion plans we have, we are looking at the adjacencies where either we can leverage our existing clients because, for example, some of the areas I mentioned like defense, some of our clients are expanding into that. Or the technologies which we have are getti
Q
Hi. Thanks for the opportunity. I hope my voice is audible.
Kishor Patil
Yes, we can hear you. Yes. So, the question is, if you look at the fixed price project which has significantly increased by 800 basis points from 56.7% to 64.8%. Do you see that? I mean, when we look at some of your peers also who are moving to the fixed price project, we see that it improves the profitability and productivity, but it has an impact on the cash flow. Do you envisage going forward if this contribution keeps on increasing, it may have an adverse impact on cash flows? If you could possibly just slide on that, that would be helpful. I have another question, but I will wait for this
Q
Hello.
Management
Q
Yes. Thanks for the opportunity. Just one thing I wanted to check. So, Mercedes recently rolled out their first SDV vehicle on MB.OS platform, and they are talking about rolling it out across their entire sort of models. So, does KPIT have any role to play in that sort of an opportunity? Or we are working on, let us say, SDV 2.0 for these OEMs?
Kishor Patil
I would not comment on a client-specific thing, but we are engaged with Mercedes. We made that announcement sometime back. Okay. Second thing, so you spoke about commercial vehicles will be driven in US, but about passenger vehicles, will the growth be consistent across all three regions? Or are there any contrast to that? I think I answered this question a few times. I think Europe followed by Asia, followed by US in passenger cars. Okay. And last thing on the interest expenses have been going up since last two quarters. So, how should we think about the interest expenses going forward? Priya
Q
Yes. Thank you for the opportunity. I wanted to ask question on the cannibalization part. Can you share an example of what kind of solution are you providing, which is leading to cannibalization? And what is the billing model for these solutions?
Kishor Patil
These are typically places where there are multiple people, parties engaged including where we come out with a full solution, including other infrastructure, mainly AI-driven solutions. Also, the related infrastructure or ecosystem we need for that kind of a solution. So, especially where, as I mentioned to you, , if I can take one example, its is in the validation area where companies typically in the past, have been doing testing or doing it in pockets. And they are not in a position to get the required impact. There we came up with more efficient, holistic, full solution and we have been in
Q
Thank you. Thank you, everyone, for joining the call and have a great evening ahead. Bye-bye.
Management
Speaking time
Kishor Patil
47
Moderator
17
Nitin
7
Ankur Pant
7
Chandramauli
5
Vimal Jamnadas
5
Sushovan
5
Karan
5
Sucrit D. Patil
4
Aman Soni
4
Advertisement
Opening remarks
Rahul Jain
Thank you, Shifa. Good evening, everyone. On behalf of Dolat Capital, I would like to thank KPIT Technologies Limited for giving us the opportunity to host this earnings call. And now, I would like to hand the conference over to Mr. Sunil Phansalkar, who is Vice President (CF&G), and Head of IR at KPIT, to do the management introductions. Over to you, Sunil.
Sunil Phansalkar
Thank you, Rahul. A very warm welcome to everybody on the Q2 FY '26 post- Earnings Conference Call of KPIT Technologies Limited. I hope you all had a great Diwali and have a great year ahead. On the call today, we have Mr. Kishor Patil – Co-Founder, CEO, and MD. We have Mr. Sachin Tikekar – President and Joint MD. We have Mr. Anup Sable – CTO and Board Member, Priyamvada Hardikar – CFO, and Sunil from IR. So, as we always do, we will have the opening remarks made by Mr. Kishor Patil, and then we will have the floor open for your questions. Thank you once again for joining. A very warm welcome to you. And I will hand this over to Mr. Kishor Patil.
Kishor Patil
Good evening, everyone. Very happy to take you through the Quarter 2 results for FY '26. As you might have seen, the overall year-on-year dollar revenue grew 4.4% and constant currency revenue grew by 0.4%. Quarter-on-quarter growth has been 1.8% in dollar terms and 0.3% in terms of constant currency. In Organic terms , there has been a degrowth of 0.8% in dollar terms and negative 2.3% in constant currency terms. The EBITDA margin stood at 21.1%. To give some color to the growth, I wanted to take some time and explain to you something because there have been some questions about the wins we continue to have. Actually, this has been an issue in the industry also as to why the wins have not reflected in growth. So, I would take a moment to explain that. See, I want to bring that out that there has been a $65 million reduction in the revenue over time for us. And it has two compositions. One is roughly about $45 million, which is basically when the customers deprioritize their spend from
Advertisement
← All transcriptsKPITTECH stock page →