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

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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 decent Q1FY26 considering the tough macro environment faced by its global auto OEM clients, who are struggling due to tariff uncertainty and intense competition from China OEMs.</li>
<li>KPIT announced new deal wins worth $241mm vs typical run-rate of $170mm. Q1FY26 revenue grew 4.9% YoY and -3.2% QoQ in constant currency terms, led by Powertrain and Connected domains.</li>
<li>A key highlight of Q1FY26 was KPIT announcing partnership with JSW for its new EV vehicle program. EBITDA margin stayed steady at 21% led by operational efficiency and currency gains.</li>
</ul>


KPIT reported a decent Q1FY26 considering the tough macro environment faced by its global auto OEM clients, who are struggling due to tariff uncertainty and intense competition from China OEMs.
KPIT announced new deal wins worth $241mm vs typical run-rate of $170mm. Q1FY26 revenue grew 4.9% YoY and -3.2% QoQ in constant currency terms, led by Powertrain and Connected domains.
A key highlight of Q1FY26 was KPIT announcing partnership with JSW for its new EV vehicle program. EBITDA margin stayed steady at 21% led by operational efficiency and currency gains.


KPIT Tech ("KPIT"): Decent Q1FY26 Despite Tough Macro

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>Demand Outlook: Demand among OEMs is increasing as they recognise the need to catch up quickly with better quality and faster validation processes.</li><li>AI-driven validation solutions remain a key priority for OEMs.</li><li>Deal Wins/Pipeline: Deal wins have grown strongly (~20% on a TTM and YoY basis), driven by factors such as reprioritisation of existing programs and rising demand for more efficient, solution-based delivery.</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.

Demand Outlook: Demand among OEMs is increasing as they recognise the need to catch up quickly with better quality and faster validation processes.AI-driven validation solutions remain a key priority for OEMs.Deal Wins/Pipeline: Deal wins have grown strongly (~20% on a TTM and YoY basis), driven by factors such as reprioritisation of existing programs and rising demand for more efficient, solution-based delivery.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 - Mix Bag Performance; Revenue Visibility Ahead

<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> reported $280mm worth of deal wins in Q4Y25, well beyond the typical run-rate of $150mm+, despite the tough demand environment, which demonstrates KPIT's strong competitive positioning.</li>
<li>KPIT's Q4FY25 PAT excluding one-time income grew 18%+ YoY in INR and 15% YoY in constant currency (CC) terms. Revenue growth was 15% YoY and 3% QoQ in CC terms.</li>
<li>Margins continued to be strong with Q4FY25 EBITDA margin at 21.1%. With this, the full-year FY25 EBITDA margin ended at 21%, in line with the upgraded guidance.</li>
</ul>



KPIT Technologies ("KPIT") reported $280mm worth of deal wins in Q4Y25, well beyond the typical run-rate of $150mm+, despite the tough demand environment, which demonstrates KPIT's strong competitive positioning.
KPIT's Q4FY25 PAT excluding one-time income grew 18%+ YoY in INR and 15% YoY in constant currency (CC) terms. Revenue growth was 15% YoY and 3% QoQ in CC terms.
Margins continued to be strong with Q4FY25 EBITDA margin at 21.1%. With this, the full-year FY25 EBITDA margin ended at 21%, in line with the upgraded guidance.


KPIT Tech: Strong Deal Wins Despite Tough Environment Attests Strong Competitive Positioning

<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> reported decent growth despite challenging macroeconomic environment in the automotive OEM segment. Q3FY25 revenue grew 17.4% YoY and 2.0% QoQ in constant currency (CC) terms.</li>
<li>Led by improved efficiency and revenue mix, EBITDA margin came in stronger than expected at 21.1%. This led KPIT to raise its FY25 EBITDA guidance to 21%+ from 20.5%+.</li>
<li>Deal engagement has been strong. TCV came in at $236mm vs typical run-rate of $150mm+. Deal pipeline is also healthy and the management is expecting substantial closures by H1FY26.</li>
</ul>



KPIT Technologies ("KPIT") reported decent growth despite challenging macroeconomic environment in the automotive OEM segment. Q3FY25 revenue grew 17.4% YoY and 2.0% QoQ in constant currency (CC) terms.
Led by improved efficiency and revenue mix, EBITDA margin came in stronger than expected at 21.1%. This led KPIT to raise its FY25 EBITDA guidance to 21%+ from 20.5%+.
Deal engagement has been strong. TCV came in at $236mm vs typical run-rate of $150mm+. Deal pipeline is also healthy and the management is expecting substantial closures by H1FY26.


KPIT Tech: Strong Q3Y25 Despite Challenging Environment

<ul><li>Robust Growth Across Verticals: The management has highlighted robust and broad-based growth across various verticals, supported by a solid deal pipeline and enhanced client engagement.</li><li>Europe led growth, followed by the US and Asia, with strong traction in Powertrain, Connected Vehicles, and SDVs (SoftwareDefined Vehicles).</li><li>Total Contract Value (TCV) Performance: Total Contract Value (TCV) for Q3FY25 stood at $236 Mn, with significant contributions from Europe and the US, reflecting higher deal conversion rates and increased client confidence in KPIT’s capabilities.</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.

Robust Growth Across Verticals: The management has highlighted robust and broad-based growth across various verticals, supported by a solid deal pipeline and enhanced client engagement.Europe led growth, followed by the US and Asia, with strong traction in Powertrain, Connected Vehicles, and SDVs (SoftwareDefined Vehicles).Total Contract Value (TCV) Performance: Total Contract Value (TCV) for Q3FY25 stood at $236 Mn, with significant contributions from Europe and the US, reflecting higher deal conversion rates and increased client confidence in KPIT’s capabilities.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 - Resilient Performance in Action

India

KPIT Technologies Limited operates as a technology company. The Company specializes in embedded software, artificial intelligence, and digital solutions. KPIT Technologies serves automobile industry worldwide.

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KPIT Technologies (KPITTECH IN)

KPIT Tech ("KPIT"): Decent Q1FY26 Despite Tough Macro

Despite tough environment for its automotive OEM clients, KPIT has been consistently outperforming its peers led by its dominant competitive...

Ankit Agrawal, CFA

KPIT Technologies Ltd - Mix Bag Performance; Revenue Visibility Ahead

Demand Outlook: Demand among OEMs is increasing as they recognise the need to catch up quickly with better quality and faster validation processes.

Axis Direct

KPIT Tech: Strong Deal Wins Despite Tough Environment Attests Strong Competitive Positioning

KPIT reported strong deal wins despite tough demand environment, thus attesting its strong competitive positioning. At the current valuation, an...

Ankit Agrawal, CFA

KPIT Tech: Strong Q3Y25 Despite Challenging Environment

KPIT reported strong growth and an upbeat demand outlook despite challenging macroeconomic environment in the automotive sector. At the current...

Ankit Agrawal, CFA

KPIT Technologies Ltd - Resilient Performance in Action

The management has highlighted robust and broad-based growth across various verticals, supported by a solid deal pipeline and enhanced client...

Axis Direct

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