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

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

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Yellowstone Equity

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


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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.

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Equity Bottom-Up

<ul>
<li>KPIT reported a strong Q4FY26 suggesting that the demand is reviving back allaying macroeconomic concerns. Deal wins came in at an all-time high of $349mm.</li>
<li>KPIT's Q4FY26 revenue grew at 1.8% QoQ in constant currency (CC), higher than the 1.5% we projected. Growth was led by off-highway and trucks followed by cloud-based connected services.</li>
<li>KPIT has been pivoting towards solutions and products, whose contribution to revenues is expected to grow at 30%+ CAGR. 21% of the total pipeline is already from solutions and products.</li>
</ul>


KPIT reported a strong Q4FY26 suggesting that the demand is reviving back allaying macroeconomic concerns. Deal wins came in at an all-time high of $349mm.
KPIT's Q4FY26 revenue grew at 1.8% QoQ in constant currency (CC), higher than the 1.5% we projected. Growth was led by off-highway and trucks followed by cloud-based connected services.
KPIT has been pivoting towards solutions and products, whose contribution to revenues is expected to grow at 30%+ CAGR. 21% of the total pipeline is already from solutions and products.


KPIT Tech: Investor Day and Earnings Update

<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 competitors like <a href="https://www.smartkarma.com/entities/tata-elxsi-ltd" target="_blank" data-smartkarma-citation="entities:13949:1" rel="noopener">Tata Elxsi</a> and <a href="https://www.smartkarma.com/entities/l-t-technology-services-limited" target="_blank" data-smartkarma-citation="entities:23601:1" rel="noopener">L&amp;T Technology (LTTS)</a> have reported improving demand in the automotive segment which suggests that KPIT's Q4FY26 earnings could come out strong.</li>
<li>Both Tata Elxsi and LTTS reported positive growth in their automotive vertical after a streak of negative growth for the past few quarters.</li>
<li>Even the impact of AI is going to be limited in the automotive segment, as solutions in automotive vertical are mission-critical and highly regulated; however, KPIT's stock has declined significantly.</li>
</ul>



KPIT Technologies (KPIT)'s competitors like Tata Elxsi and L&amp;T Technology (LTTS) have reported improving demand in the automotive segment which suggests that KPIT's Q4FY26 earnings could come out strong.
Both Tata Elxsi and LTTS reported positive growth in their automotive vertical after a streak of negative growth for the past few quarters.
Even the impact of AI is going to be limited in the automotive segment, as solutions in automotive vertical are mission-critical and highly regulated; however, KPIT's stock has declined significantly.


KPIT: Q4FY26 Earnings Preview - Growth Is Reviving | AI Impact Overdone in the Stock Price

<ul>
<li>Despite industry macroeconomic challenges, KPIT posted decent Q3FY26 earnings with QoQ growth of 1.5% in constant currency (CC) terms. EBITDA was flattish despite partial wage hikes.</li>
<li>Europe and off-highway commercial segments drove the growth in Q3FY26. Deal wins also came in strong at $202mm, well above the typical run-rate of $170mm+.</li>
<li>KPIT is shifting towards a solutions-led approach from being services-led. A solutions-led approach will enable KPIT to take full ownership of programs, enhancing KPIT's competitive advantage significantly over time.</li>
</ul>


Despite industry macroeconomic challenges, KPIT posted decent Q3FY26 earnings with QoQ growth of 1.5% in constant currency (CC) terms. EBITDA was flattish despite partial wage hikes.
Europe and off-highway commercial segments drove the growth in Q3FY26. Deal wins also came in strong at $202mm, well above the typical run-rate of $170mm+.
KPIT is shifting towards a solutions-led approach from being services-led. A solutions-led approach will enable KPIT to take full ownership of programs, enhancing KPIT's competitive advantage significantly over time.


KPIT Tech: Shift to a Solutions Led Approach

External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

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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>Europe emerged as a primary growth driver during Q3, showing early signs of a turnaround, while the US showed a sequential decline.</li>
<li>Nevertheless, India and China continue to show long-term traction.</li>
<li>Overall, OEM spending remained under pressure due to supply chain issues, geopolitical uncertainties, and tariff-related ambiguity. </li>
</ul>
<p><em>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.</em></p>


Europe emerged as a primary growth driver during Q3, showing early signs of a turnaround, while the US showed a sequential decline.
Nevertheless, India and China continue to show long-term traction.
Overall, OEM spending remained under pressure due to supply chain issues, geopolitical uncertainties, and tariff-related ambiguity. 

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 - Soft Quarter; Solution-Based Transformation

<ul>
<li>Despite macro challenges, <a href="https://www.smartkarma.com/entities/kpit-technologies-ltd" target="_blank" data-smartkarma-citation="entities:35189:1" rel="noopener">KPIT</a> delivered a decent Q2FY26 and is on track to post a much better H2FY26, led by reducing uncertainty and improving demand environment.</li>
<li>More importantly, KPIT has been adding select capabilities that have been pivotal to building its differentiation and competitiveness. Its approach to move to solutions vs services has been yielding fruition.</li>
<li>Deal wins came in strong in Q2FY26 at $232mm, well above the typical $150mm+ run-rate. Additionally, KPIT also won a mega $100mm+ deal.</li>
</ul>


Despite macro challenges, KPIT delivered a decent Q2FY26 and is on track to post a much better H2FY26, led by reducing uncertainty and improving demand environment.
More importantly, KPIT has been adding select capabilities that have been pivotal to building its differentiation and competitiveness. Its approach to move to solutions vs services has been yielding fruition.
Deal wins came in strong in Q2FY26 at $232mm, well above the typical $150mm+ run-rate. Additionally, KPIT also won a mega $100mm+ deal.


KPIT: Improving Trajectory, H2FY26 Guided to Be Significantly Better

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.

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KPIT Technologies (KPITTECH IN)

KPIT Tech: Investor Day and Earnings Update

KPIT has been pivoting towards solutions and products which is slated to grow at 30%+ CAGR. Led by increase in complexity with AI adoption, demand...

Ankit Agrawal, CFA

KPIT: Q4FY26 Earnings Preview - Growth Is Reviving | AI Impact Overdone in the Stock Price

KPIT's growth has been muted over the last year due to macroeconomic concerns but it is now reversing. Also, led by AI impact, the stock has seen...

Ankit Agrawal, CFA

KPIT Tech: Shift to a Solutions Led Approach

Despite tough environment, KPIT reported a decent Q3. KPIT's weak phase is bottoming. FY27 is likely to be a decent year. FY28 onwards, growth is...

Ankit Agrawal, CFA

KPIT Technologies Ltd - Soft Quarter; Solution-Based Transformation

Europe emerged as a primary growth driver during Q3, showing early signs of a turnaround, while the US showed a sequential decline.

Axis Direct

KPIT: Improving Trajectory, H2FY26 Guided to Be Significantly Better

Despite macro challenges, KPIT reported decent earnings. Especially, the strong deal wins highlights KPIT's robust competitiveness. Guidance for...

Ankit Agrawal, CFA

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