IGI Logo

Key Conference Call Highlights

Strategic Pivot Towards Products and Solutions

* Targeted Growth: Management expects 30% growth YoY in Solutions and Products, with a goal to have these account for 50-60% of total revenue within 3 years

* Profitability Drivers: This shift is expected to significantly improve margin, with a medium-term EBITDAM target of 22% to 24%, up from the current 20- 21% range

* Business Model Change: There is a concerted effort to move away from Time and Material (T&M) contracts towards fixed-price and outcome-based models, which now represent over 80% of new contracts

Segmental Performance

* Passenger Cars: The largest segment, contributing over 75% of revenue, grew 3% YoY to USD 572.2 Mn. Growth was impacted by program delays and Honda EV cancellations, though 3 new OEM wins are expected to support recovery

* Trucks & Off-Highway: A key growth driver, this segment grew 18.7% YoY, including 11.6% QoQ growth in Q4FY26. KPIT expanded its SDM focus, adding 4 truck and 6 off-highway OEMs globally

* Micromobility: KPIT re-entered the two and three-wheeler segment after 6 years, partnering with Hero Motors in India on propulsion and vehicle engineering, positioning the business as a long-term growth opportunity in Asia

* Others: Cloud-Based Connected Services delivered the strongest growth at 31% YoY. Architecture & Middleware Consulting declined 13.7% due to delays in next-generation vehicle architecture programs at major OEMs

Geographical Performance

* USA: Revenue grew 4.9% YoY to USD 198.8 Mn. Management sees strong opportunities as OEMs like GM and Ford accelerate investments in SDV programs, SUVs, and hybrids within the relatively protected US market

* Europe: Revenue increased 5.6% YoY to USD 348 Mn, though Q4 declined 7.1% QoQ. Rising Chinese competition and cost pressures are driving OEMs to optimize spending, creating opportunities for KPIT’s cost-efficiency solutions

* Asia (including India & China): Revenue grew 3.3% YoY, with a strong 25.1% QoQ rise in Q4, reflecting improving momentum across key markets

• India: Contributing nearly 4% of revenue, India is a strategic focus area. KPIT aims to double revenue in FY27 by supporting domestic OEMs developing globally competitive India-focused products

* China: Also contributing around 4% of revenue, China remains strategically important. KPIT is strengthening its presence to learn from the rapid local ecosystem and support global OEMs defending market share

AI and Technological Leadership

* Beacon Platform: KPIT launched Beacon, a next-generation Mobility Intelligence Product designed for AI-first development, integration and validation to help OEMs reduce software cost and time to market.

* Investment in R&D: The company continues to invest 5% of its revenue into R&D, which is significantly higher than the industry average

* Cybersecurity Expansion: KPIT is acquiring a strategic stake in Cymotive to strengthen its automotive cybersecurity capabilities, which management views as a core enabler for software-defined vehicles (SDVs)

Resilience and Client Relationships

* Wallet Share Expansion: The strategy focuses on going deep and wide with the Top 25 clients, aiming to increase wallet share from nearly 10% to over 20% in the immediate future

* New Client Wins: Despite being selective, KPIT added 13 new clients in FY26, including breakthroughs with major passenger car and truck OEMs

For Detailed Report With Disclaimer Visit. https://choicebroking.in/disclaimer

SEBI Registration no.: INZ 000160131