KPIT Technologies Limited Earnings Summary — Q4 FY2026
KPIT Technologies Reports Revenue Growth Amidst Margin Softening in Q4 FY2026
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 2.1% sequentially in Q1 FY2027.
- Revenue of ₹1,675 Cr is 8.9% higher year-on-year.
- Revenue has compounded at 11.2% annualised over the last 10 quarters.
- Net profit of ₹117 Cr is 31.8% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -14.0% annualised across the period.
- Operating margin stands at 15.4% in Q1 FY2027.
- Operating margin compressed by 379 bps year-on-year.
- Over the last two years operating margin has contracted by 570 bps.
- PBT margin is 9.6%.
- Expenses grew 14.0% against revenue growth of 8.9%.
- Operating profit of ₹257 Cr is 12.7% lower year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 51/100 (Moderate) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,675 | 1,711 | 1,617 | 1,588 | 1,539 | 1,528 | 1,478 | 1,471 | 1,365 | 1,318 |
| Expenses | Improving | 1,418 | 1,394 | 1,306 | 1,290 | 1,244 | 1,205 | 1,172 | 1,174 | 1,077 | 1,045 |
| Operating Profit | Stable | 257 | 317 | 311 | 298 | 295 | 323 | 306 | 297 | 288 | 272 |
| Operating Margin | Softening | 15.4% | 18.5% | 19.2% | 18.8% | 19.2% | 21.1% | 20.7% | 20.2% | 21.1% | 20.7% |
| Other Income | Volatile | 8 | 12 | -26 | 24 | 16 | 60 | 19 | 52 | 54 | 17 |
| Interest | Improving | 23 | 22 | 23 | 16 | 12 | 9 | 10 | 10 | 13 | 12 |
| Depreciation | Improving | 83 | 82 | 81 | 75 | 63 | 58 | 58 | 56 | 53 | 53 |
| Profit Before Tax | Stable | 160 | 225 | 181 | 231 | 236 | 316 | 257 | 283 | 277 | 224 |
| Tax | Stable | 44 | 62 | 48 | 61 | 64 | 71 | 70 | 79 | 73 | 59 |
| Net Profit | Stable | 117 | 163 | 133 | 169 | 172 | 245 | 187 | 204 | 204 | 164 |
| Net Margin | Softening | 7.0% | 9.5% | 8.2% | 10.7% | 11.2% | 16.0% | 12.7% | 13.8% | 15.0% | 12.5% |
Key Takeaways
- Revenue reached a quarterly high of ₹1,711 Cr, growing 12% year-on-year.
- Net profit saw a significant recovery on a sequential basis (up 22.6% vs Q3) but remains well below the previous year's peak of ₹245 Cr.
- Operating margins compressed to 18.5%, down from 21% a year ago, reflecting higher expense ratios.
- Borrowings significantly spiked to ₹838 Cr in Mar 2026 from ₹345 Cr in Mar 2025.
- The company has transitioned into a major mobility specialist with a 26% 5-year sales CAGR.
- Tax rates remained relatively stable at 27% for the latest quarter.
- Depreciation and interest costs have steadily increased, impacting the bottom line.
Management Guidance
Management remains focused on the Software-defined Vehicle (SDV) space, maintaining a bullish outlook on autonomous, clean, and connected mobility despite a temporary dip in full-year profit trajectory for FY26.
Sentiment Shift
Deteriorating
While revenue continues to scale, the sharp increase in debt, rising interest costs, and significant decline in year-on-year net profit indicate near-term margin pressure and capital structure changes.
Outlook
The fundamental engine driven by multi-year strategic partnership agreements remains intact; however, the company is entering a phase of higher leverage and normalized profit growth compared to the exponential growth of FY25.
From the Annual Report (Key Quotes)
“Uniquely positioned at the intersection of AI, autonomous driving, and vehicle electrification.”
“Fundamental growth engine remains powered by multi-year strategic partnership agreements with global automotive leaders.”
“Vision is clearly articulated towards autonomous, clean, and connected mobility.”
Official Quarterly Documents
This summary is AI-generated from KPIT Technologies Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.