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Despite current global uncertainties, KPIT Technologies expects to sustain a medium-term growth rate of 18–20%, with a recovery likely in the second half of 2025-26 (FY26), driven by improving client visibility, a robust order book, and continued strategic expansion in key markets like China and Europe. Co-Founder, MD & CEO Kishor Patil said that growth momentum is likely to pick up as large programme ramp-ups begin and macro headwinds ease. Margins are expected to remain steady at 21%, with further improvement possible as investments in artificial intelligence (AI) and platform technologies scale.
The company reported a 31% increase in its net profit in the January-March quarter of 2025 (Q4FY25), which rose to ₹244.7 crore compared to the October-December quarter of 2024 (Q3FY25). The company's revenue grew by 3.
4%, reaching ₹1,528 crore. Its earnings before interest and tax (EBIT) also increased by 4.4%, from ₹254 crore in December to ₹265 crore.
KPIT Technologies’ total market capitalisation is approximately ₹34,629.85 crore. However, over the past year, its stock price has fallen by nearly 17%.
These are verbatim excerpts of the interview. Q: Why no guidance? You have enough orders on hand, you have visibility, but no guidance. Why is that? A: We should start with celebrating something we already have in hand, which is rare in the industry right now—visibility for the next year.
So that is the number one part. The second is to answer your question. But just to keep you informed, if you look at deal wins, they have been very good.
And if you see, there were certain questions earlier about us winning this large programme, software-defined vehicles (SDVs) —is that over? Are there going to be new programmes, etc.? So, we have Mercedes-Benz Research and Development India (MBRDI), and we also have the partnership we announced during the quarter. Also Read: Tata Technologies CEO eyes stronger second half in FY26 So, the point is, we are making good progress overall.
And we are also increasing the pipeline. In the July-September quarter of 2024 (Q2FY25), we said the market was a bit uncertain, soft, which is what I said in the analyst and other calls. Also, in the October-December quarter of 2024 (Q3FY25), we said we are moving from there, and we are seeing better visibility.
Things are happening. We know exactly what clients want and what we need to address, and we are ready for that. By the January-March quarter of 2025 (Q4FY25)-end, we will have a better understanding, not only of engagement but also of the pipeline.
If I may say so, there is good progress happening. What is happening in the US is kind of an interruption, and that should settle down in a quarter or two. It is not binary—it’s happening in pockets.
Some of these larger engagements or wins, we have already started working on in some cases, in others, we have started transitioning. But the big scale-up will happen once this uncertainty goes away, which should be in the next three to four months. Q: So, it’s possible.
You reinstate guidance once you have more clarity. But at this stage, as you look ahead, will we see at least 10% growth for FY26? A: We are a pretty ambitious company, and we have certain goals, and I am very confident that in the medium term, if this current interruption were not there, we would have been anywhere between 18% and 20%. So, that is what we are calibrating, due to the interruption.
So, for this year, the first half is going to be a bit softer, but I feel we should come back reasonably well in the second half. Q: Just to understand—you said that if there was no tariff uncertainty, then you would have been reasonably confident of doing at least 18–20% growth, right? Which is ballpark what you did in 2024-25 (FY25). So, should we take that as a sustainable run rate for KPIT Tech, excluding global disruptions? A: Absolutely.
That is what we have been saying—that in the medium term, that is what we are aiming for. And if you look at the past, we have delivered that. So, at a high level, I would say that, but do not put any number.
Q: Now let’s talk about the current disruption. Because from what you are saying, it seems that everything is not stalled on the ground. Your partnership with Mercedes is progressing.
You have also indicated that you could be looking at more wins in China. So, can you give us some more colour? Have companies deferred decisions? Will programme ramp-ups be impacted? What exactly is happening on the ground, because we will have more clarity in July once this 90-day deal window is shut. But what exactly is going on? And how much additional revenue are you hoping to get from the Chinese original equipment manufacturers (OEMs)? A: Let me first address China, and then I will come to your second question.
China is more strategic for our business because it's the largest market in automotive, and it’s a very innovative market. So, we want to build an organisation there. I mean, we will have revenues, but we will be patient.
It’s a long-term commitment. But we see clear opportunities—for instance, understanding Chinese technology and taking it to our global OEMs, who want to bring some of those features into their cars. Also Read: Franklin Templeton prefers financials over IT as markets brace for consolidation Second, helping our global OEMs in China build competitive features for the Chinese market.
And third, helping some of the Chinese companies that want to expand outside of China. So, there are two or three ways to grow there, and we are focusing on them. It’s going to be a bit of a long haul, but we are making concrete progress in building alliances, partnerships, and engagement, and building our organisation.
Very importantly, we are learning from China—that is our priority. Coming to your second point, right now, globally, most OEMs have production programmes lined up in the next 2–2.5 years.
Even if there is some delay, that’s the time frame. Most of them are late. They are unsure about architecture, they are facing some quality issues.
That is where KPIT, as an independent software integrator, comes in. We have built platforms, technology, tools—a very compelling story in terms of AI, platforms and our knowledge. For the entire interview, watch the accompanying video Catch all the latest updates from the stock market here.
