Did KPIT Technologies' Q2 Net Profit Drop by 17% to Rs 169 Crore?
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Synopsis
KPIT Technologies has reported a significant 17% YoY decrease in net profit for Q2 FY26, totaling Rs 169.08 crore. However, revenue from operations rose by 8%, driven by strong demand in Europe. Explore the company’s strategic partnerships and investments aimed at leading the software-defined vehicle transformation amidst global uncertainties.
Key Takeaways
- 17% YoY decline in net profit to Rs 169.08 crore.
- Total expenses rose over 9% YoY to Rs 1,358 crore.
- Revenue from operations increased by 8% YoY to Rs 1,587.7 crore.
- Strong demand from European markets offset declines in the Americas.
- Strategic investments to enhance capabilities in software-defined vehicles.
Mumbai, Nov 10 (NationPress) KPIT Technologies has announced a 17% year-on-year (YoY) drop in its consolidated net profit for the second quarter of the current fiscal year (Q2 FY26), totaling Rs 169.08 crore.
The software development firm, which specializes in integrated services for the automotive and mobility sectors, recorded a net profit of Rs 203.7 crore in the same quarter last year (Q2 FY25). There was also a sequential decline of over 28% from Rs 171.89 crore in Q1 FY26.
This profit reduction was primarily due to increased expenditures, with the company’s total costs rising more than 9% YoY to Rs 1,358 crore from Rs 1,235.9 crore.
Conversely, revenue from operations grew to Rs 1,587.7 crore, reflecting an 8% YoY increase from Rs 1,471.4 crore and a 3.1% quarter-on-quarter (QoQ) rise from Rs 1,538.7 crore.
This growth was fueled by strong demand from European markets, even as there was a slight downturn in the American segment.
Revenue from the UK and Europe surged 13.6% sequentially to Rs 828.3 crore, compensating for the decline in the Americas, where revenue dipped to Rs 442.4 crore from Rs 456.9 crore in the previous quarter.
The company's operational performance has seen an improvement, with EBITDA margin enhancing to 21.1% and EBIT margin at 16.4% for the quarter.
As stated in its exchange filing, KPIT has secured a new total contract value exceeding Rs 1,940 crore, which encompasses a major multi-year partnership with a prominent European automotive manufacturer to facilitate the transition to software-defined vehicles (SDV).
“In spite of ongoing global uncertainties, we are witnessing signs of renewed optimism within the mobility ecosystem. Our strategic investments, including the acquisition of Caresoft Engineering Solutions Business in Q2 and an increased stake in NDream alongside our investment in helm.ai in Q3, are fortifying our foundation and expanding our capabilities,” remarked Kishor Patil, Co-founder, CEO, and MD of KPIT.
With the industry moving towards software-defined vehicles, KPIT’s emphasis on next-generation technologies, AI-driven solutions, and strong client partnerships positions the company to lead this transformation, he added.
Point of View
KPIT Technologies faces challenges reflected in its latest earnings report. Despite a decrease in net profit, the growth in revenue signals resilience and adaptability. The company's focus on strategic partnerships indicates a proactive approach to navigating market uncertainties, essential for maintaining competitiveness in the automotive sector.
NationPress
12/11/2025
Frequently Asked Questions
What caused the decline in KPIT Technologies' Q2 net profit?
The decline was primarily due to increased expenses, with total costs rising over 9% year-on-year.
How did revenue from operations perform in Q2?
Revenue from operations increased to Rs 1,587.7 crore, marking an 8% growth year-on-year.
What regions contributed to KPIT's revenue growth?
The UK and Europe contributed significantly, with revenue rising 13.6% sequentially.
What strategic investments has KPIT made recently?
KPIT has secured a new contract value exceeding Rs 1,940 crore and invested in various partnerships to strengthen its market position.
What is the company's focus moving forward?
KPIT is focusing on next-generation technologies and AI-driven solutions to lead in the software-defined vehicle space.
