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


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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.

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Compliance/Grievance Officer:
Name: Ankit Agrawal
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

<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>
<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>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.


<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

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 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 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: 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

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

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