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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Compliance/Grievance Officer:
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Email: services@yellowstoneequity.com
Mobile: +91-7575817289
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Equity Bottom-Up

<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

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>Macro Environment Outlook: The overall macro environment has shown a marked improvement, with uncertainty levels reducing by over 50% compared to Q4FY25.</li><li>Europe displayed strong traction during the quarter as clients began transitioning their supply chains from local to more globally integrated ecosystems.</li><li>Deal Wins/Pipeline: The company announced a major multi-year, multi-domain deal from a leading European OEM. </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.

Macro Environment Outlook: The overall macro environment has shown a marked improvement, with uncertainty levels reducing by over 50% compared to Q4FY25.Europe displayed strong traction during the quarter as clients began transitioning their supply chains from local to more globally integrated ecosystems.Deal Wins/Pipeline: The company announced a major multi-year, multi-domain deal from a leading European OEM. 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 - Impact of Acquisition Spends; Significant Recovery from FY27

<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

<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

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: 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

KPIT Technologies Ltd - Impact of Acquisition Spends; Significant Recovery from FY27

Macro Environment Outlook: The overall macro environment has shown a marked improvement, with uncertainty levels reducing by over 50% compared to...

Axis Direct

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

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