Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

Creating Wealth through Alpha and Compounding

Yellowstone Equity

Providing unbiased and independent research on Indian equities to global institutions and individual investors


-------------
Regulatory Disclosure: 
Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Research Analyst Contact Details:
Address: A-412, Shilp Aaron, Sindhu Bhavan Road, Ahmedabad, Gujarat - 380059
Email: services@yellowstoneequity.com
Mobile: +91-7575817289

Compliance/Grievance Officer:
Name: Ankit Agrawal
Email: services@yellowstoneequity.com
Mobile: +91-7575817289
-------------

Equity Bottom-Up

<ul>
<li>Despite a tough macro environment, KPIT posted decent earnings in Q1FY27. As opposed to expectation of -1% YoY de-growth, KPIT posted 0.1% growth in constant currency (CC) terms.</li>
<li>QoQ, de-growth in revenue was -3.6% vs -5.0% guided. EBITDA margin compressed from earlier 20%+ levels to 17.2% due to operating de-leverage. Deals wins however were strong at $257mm.</li>
<li>Macroenvironment has been tough for OEMs mainly due to competition from Chinese OEMs both in China and in Europe. Furthermore, tariffs and war led inflation have worsened the situation.</li>
</ul>


Despite a tough macro environment, KPIT posted decent earnings in Q1FY27. As opposed to expectation of -1% YoY de-growth, KPIT posted 0.1% growth in constant currency (CC) terms.
QoQ, de-growth in revenue was -3.6% vs -5.0% guided. EBITDA margin compressed from earlier 20%+ levels to 17.2% due to operating de-leverage. Deals wins however were strong at $257mm.
Macroenvironment has been tough for OEMs mainly due to competition from Chinese OEMs both in China and in Europe. Furthermore, tariffs and war led inflation have worsened the situation.


Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul>
 <li>
<a href="https://smartkarma.com/entities/kpit-technologies-ltd">KPIT Technologies</a> is a pure-play automotive software and engineering services provider, uniquely positioned to capitalize on the industry's shift towards Software-Defined Vehicles (SDVs).</li>
 <li>The company exhibits a strong growth track record and a healthy deal pipeline, though it faces near-term margin pressures and increased competition.</li>
 <li>Long-term outlook remains positive, driven by deep domain expertise, strategic partnerships with leading global OEMs, and alignment with automotive megatrends like electrification and autonomous driving.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
KPIT Technologies is a pure-play automotive software and engineering services provider, uniquely positioned to capitalize on the industry's shift towards Software-Defined Vehicles (SDVs).
  The company exhibits a strong growth track record and a healthy deal pipeline, though it faces near-term margin pressures and increased competition.
  Long-term outlook remains positive, driven by deep domain expertise, strategic partnerships with leading global OEMs, and alignment with automotive megatrends like electrification and autonomous driving.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: KPIT Technologies (KPITTECH IN) - Aug 2026

External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Healthy Deal Pipeline, but Macro Headwinds Persist: KPIT continues to strengthen its growth outlook through a healthy deal pipeline, with Q1FY27 TCV of US$257 Mn, driven by Connected Cars, Autonomous Systems, and After-Sales Transformation.</li><li>Moreover, the company is broadening its customer base by adding new OEMs across Japan, Korea, Europe, the US, and the commercial vehicle segment, reducing its dependence on a few large clients.</li><li>Despite these deal wins, the company continues to face rising competition from Chinese OEMs in European markets, input cost inflation driven by geopolitical conflicts, and tariff-related uncertainties in the US. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Healthy Deal Pipeline, but Macro Headwinds Persist: KPIT continues to strengthen its growth outlook through a healthy deal pipeline, with Q1FY27 TCV of US$257 Mn, driven by Connected Cars, Autonomous Systems, and After-Sales Transformation.Moreover, the company is broadening its customer base by adding new OEMs across Japan, Korea, Europe, the US, and the commercial vehicle segment, reducing its dependence on a few large clients.Despite these deal wins, the company continues to face rising competition from Chinese OEMs in European markets, input cost inflation driven by geopolitical conflicts, and tariff-related uncertainties in the US. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

KPIT Technologies Ltd - Near-Term Softness; Growth Recovery Expected from H2FY27

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kpit-technologies-ltd" target="_blank" data-smartkarma-citation="entities:35189:1" rel="noopener">KPIT Technologies (KPIT)</a>'s management has been saying over the past couple of quarters that the near-term demand disruption has been temporary and it will translate into strong medium-term demand.</li>
<li>This was corroborated by Tata Technologies' management on its recent earnings call. While Tata Technologies is not a pure-play peer of KPIT, its outlook on demand environment provides important cues.</li>
<li>While the R&amp;D spending continues to be cautious, it is being prioritized towards programs that accelerate product launches, improve efficiency and reduce cost, and support the transition to software-defined products</li>
</ul>



KPIT Technologies (KPIT)'s management has been saying over the past couple of quarters that the near-term demand disruption has been temporary and it will translate into strong medium-term demand.
This was corroborated by Tata Technologies' management on its recent earnings call. While Tata Technologies is not a pure-play peer of KPIT, its outlook on demand environment provides important cues.
While the R&amp;D spending continues to be cautious, it is being prioritized towards programs that accelerate product launches, improve efficiency and reduce cost, and support the transition to software-defined products


KPIT Tech: Important Cues on Demand Environment from Tata Tech Earnings Call

<ul>
<li>KPIT raised its full-year FY24 revenue growth guidance to 37%+ from 27-30% earlier, led by a strong Q2FY24 performance. EBITDA margin guidance has been also raised to 20%+ from 19-20%.</li>
<li>Despite wage hike impact of 250bp, EBITDA margin came in at 20%, at the upper end of the 19-20% FY24 guidance. Operating leverage and realization improvement helped offset the impact.</li>
<li>With the strong Q2 performance, we are upgrading our FY24 PAT estimate to INR 580cr+ vs INR 550cr+ earlier and FY25 PAT of INR 730cr+ vs INR 700cr+ earlier.</li>
</ul>


KPIT raised its full-year FY24 revenue growth guidance to 37%+ from 27-30% earlier, led by a strong Q2FY24 performance. EBITDA margin guidance has been also raised to 20%+ from 19-20%.
Despite wage hike impact of 250bp, EBITDA margin came in at 20%, at the upper end of the 19-20% FY24 guidance. Operating leverage and realization improvement helped offset the impact.
With the strong Q2 performance, we are upgrading our FY24 PAT estimate to INR 580cr+ vs INR 550cr+ earlier and FY25 PAT of INR 730cr+ vs INR 700cr+ earlier.


India

KPIT Technologies Limited is a global technology company specializing in software solutions for the automotive and mobility industry. The company provides embedded software, artificial intelligence, and digital solutions, focusing on next-generation technologies like autonomous driving, electric mobility, connected vehicles, and vehicle diagnostics. Headquartered in Pune, India, the company was founded in 1990.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

KPIT Technologies (KPITTECH IN)

KPIT: Growth to Recover by H2FY27

While the automotive industry is going through a tough time due to competition from Chinese OEMs, KPIT is likely to do well in the medium-term led...

Ankit Agrawal, CFA

Primer: KPIT Technologies (KPITTECH IN) - Aug 2026

KPIT Technologies is a pure-play automotive software and engineering services provider, uniquely positioned to capitalize on the industry's...

αSK Primers

KPIT Technologies Ltd - Near-Term Softness; Growth Recovery Expected from H2FY27

KPIT continues to strengthen its growth outlook through a healthy deal pipeline, with Q1FY27 TCV of US$257 Mn, driven by Connected Cars...

Axis Direct

KPIT Tech: Important Cues on Demand Environment from Tata Tech Earnings Call

Tata Tech's management witnessed what KPIT's management has been saying over the past 2 quarters - the near-term demand disruption has been...

Ankit Agrawal, CFA

KPIT: Raises Its Full-Year FY24 Guidance

Post the strong Q2FY24 performance, KPIT has upgraded its FY24 revenue growth guidance to 37%+ YoY vs 27-30% earlier. EBITDA margin guidance has...

Ankit Agrawal, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)