KPIT Technologies Limited (KPITTECH) AI Stock Analysis

• Market Cap: ₹181.32B
• Dividend Yield: 0.69%
• Average Volume (3M): 64.43K
• Price to Earnings (P/E): 59.8
• Beta (1Y): 1.57
• Revenue Growth: 13.34%
• EPS Growth: 5.98%
• Country: IN
• Employees: 8,782
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 4.90
• Shares Outstanding: 274,143,800
• 10 Day Avg. Volume: 52,519
• 30 Day Avg. Volume: 64,430
• PEG Ratio: 1.01
• Price to Book (P/B): 11.93
• Price to Sales (P/S): 5.95
• P/FCF Ratio: 27.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,307.50
• Price Target Upside: 12.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 25.63
• Revenue Forecast (FY): ₹64.02B

• Rating: 66 Neutral
• Price Target: ₹714.00 ▼(-38.83% Downside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

Strong financial performance (growth, profitability, balance sheet strength, and cash-flow generation) is the main positive driver, but the score is held back by very weak technicals (price below key moving averages with strongly bearish momentum). Valuation is neither a major tailwind nor a major support due to a relatively high P/E and only a modest dividend yield.

Positive Factors

Revenue Growth Momentum

Sustained double-digit revenue growth reflects durable demand for KPIT's automotive engineering services and software. Coupled with multi-year vehicle platform engagements, this growth supports repeatable revenue, expanding client footprints and long-term contract pipelines across electrification and autonomy cycles.

Strong Cash Flow Generation

Robust operating cash flow and rising free cash flow indicate efficient conversion of profits into cash. This sustains reinvestment in R&D, funds working capital needs, reduces reliance on external financing, and supports capital allocation flexibility for strategic hires or selective acquisitions.

Solid Balance Sheet / Low Leverage

A conservative capital structure with low leverage and rising equity reduces refinancing risk and enables the company to absorb cyclical downturns. It provides financial optionality for strategic investments, partnership funding, and steadier support for long-term contractual commitments.

Negative Factors

Earnings per Share Contraction

Negative EPS growth signals pressure on reported earnings despite revenue gains, possibly from investments, mix shifts, or margin headwinds. Persistent EPS declines can constrain free cash available for dividends or buybacks and may limit perceived profitability improvement to investors.

Concentration in Automotive / Mobility

High exposure to automotive OEMs and suppliers ties KPIT's performance to capital expenditure cycles, platform refresh timing, and regulatory shifts in the auto industry. While specialization aids expertise, it raises cyclicality and revenue sensitivity to industry downturns or slower EV/autonomy adoption.

Services-led Revenue Mix

A services-heavy model with T&M and fixed-price projects creates utilization and contract-timing sensitivity, reducing recurring revenue visibility versus pure software licensing. Long-term margin expansion depends on utilization, contract mix, and converting services into higher-margin software offerings.

KPIT Technologies Limited Business Overview & Revenue Model

Company Description

KPIT Technologies Limited provides embedded software, artificial intelligence, and digital solutions for the automobile and mobility sector in the Americas, the United Kingdom, rest of Europe, and internationally. The company offers autonomous driving and advanced driver assistance system solutions, including system engineering; feature, algorithm, and software development; platform and software integration; verification and validation; and simulation for homologation. It also provides electric power train solutions, which include battery management systems, inverters, smart chargers, and modular and configurable VCU solutions; and K-DCP engineering toolchain, K-DCP aftersales suite, K-DCP connected diagnostics solutions, and K-DCP business integration and related services, as well as operates vehicle infotainment platform and infotainment connectivity platform for connected vehicles. In addition, the company operates AUTOSAR platform; and provides vehicle engineering and design services. The company was formerly known as KPIT Engineering Limited and changed its name to KPIT Technologies Limited in March 2019. The company was founded in 1990 and is based in Pune, India.

How the Company Makes Money

KPIT makes money primarily by delivering engineering services and software development to automotive OEMs (vehicle manufacturers) and Tier-1 suppliers under commercial contracts. Revenue is largely services-led and typically recognized based on time-and-materials billing (charging for engineering effort delivered) and fixed-price/project-based engagements (charging for defined deliverables and milestones) for programs such as ECU/embedded development, middleware and platform engineering, validation and testing, cloud connectivity, and data/analytics work for mobility use cases. In addition to pure services, the company also generates revenue from software-led engagements where it licenses or provides access to accelerators, frameworks, tools, or reusable software components as part of customer programs, often bundled with engineering implementation and long-term maintenance/support. A meaningful contributor to earnings is multi-year engagements aligned to customers’ vehicle platform lifecycles, which can include ongoing feature development, system integration, testing, and post-launch support, providing repeat business and annuity-like revenue. Partnerships with automotive technology ecosystems (e.g., semiconductor/platform vendors, cloud providers, and automotive software platforms/standards bodies) can support deal wins by enabling joint solutions and co-selling, but specific partnership-driven revenue split or amounts are not publicly disclosed in a way that can be stated precisely here.

KPIT Technologies Limited Financial Statement Overview

Summary

Strong fundamentals: high income statement score driven by robust revenue growth and improving margins, a solid balance sheet with low leverage and rising equity, and strong cash generation with healthy free-cash-flow conversion.

Income Statement

KPIT Technologies has demonstrated strong financial performance in recent years, evidenced by impressive revenue growth and robust profitability margins. The company's Gross Profit Margin and Net Profit Margin have consistently improved, indicating effective cost management and value creation. The significant increase in Total Revenue from 2024 to 2025 highlights a substantial growth trajectory. Additionally, both EBIT and EBITDA margins have shown positive trends, reinforcing the company's operational efficiency and profitability.

Balance Sheet

The balance sheet of KPIT Technologies reflects a solid financial position, characterized by a low Debt-to-Equity Ratio and healthy Return on Equity. The company's equity ratio is strong, indicating a stable capital structure with a significant portion of assets financed by shareholder equity rather than debt. The consistent increase in stockholders' equity over the years further underscores financial stability and the ability to reinvest profits into growth opportunities.

Cash Flow

KPIT Technologies exhibits strong cash flow generation, with a noteworthy increase in Free Cash Flow, driven by substantial growth in Operating Cash Flow. The Free Cash Flow to Net Income Ratio is solid, indicating efficient conversion of profits into cash. The company has effectively managed capital expenditures, maintaining a healthy Free Cash Flow despite investments in growth initiatives. The Operating Cash Flow to Net Income Ratio further emphasizes the company's ability to generate cash from its core operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	61.33B	58.42B	48.72B	33.65B	24.32B	20.36B
Gross Profit	21.60B	20.21B	16.46B	11.44B	7.90B	6.61B
EBITDA	11.58B	10.82B	8.68B	5.40B	3.69B	2.12B
Net Income	7.73B	8.40B	5.95B	3.81B	2.74B	1.46B
Balance Sheet
Total Assets	67.14B	50.33B	41.68B	23.36B	23.36B	19.68B
Cash, Cash Equivalents and Short-Term Investments	12.12B	15.66B	8.56B	10.00B	10.00B	8.27B
Total Debt	5.29B	3.45B	3.29B	2.87B	2.27B	2.30B
Total Liabilities	34.51B	21.21B	20.05B	10.11B	10.11B	7.58B
Stockholders Equity	32.63B	29.12B	21.46B	13.10B	13.10B	12.07B
Cash Flow
Free Cash Flow	3.13B	12.60B	8.46B	3.33B	5.68B	5.68B
Operating Cash Flow	3.90B	13.90B	10.02B	4.62B	6.28B	6.28B
Investing Cash Flow	-6.09B	-6.30B	-5.64B	-2.23B	-3.02B	-5.01B
Financing Cash Flow	-822.87M	-3.42B	-2.40B	-1.23B	-1.15B	-1.15B

KPIT Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1167.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KPITTECH, the sentiment is Negative. The current price of 1167.15 is above the 20-day moving average (MA) of 718.06, above the 50-day MA of 910.69, and above the 200-day MA of 1147.09, indicating a bearish trend. The MACD of -71.95 indicates Negative momentum. The RSI at 28.61 is Positive, neither overbought nor oversold. The STOCH value of 46.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KPITTECH.

KPIT Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TATAELXSI	74 Outperform	₹263.97B	74.95	―	1.38%	-1.19%	-17.92%
CYIENT	73 Outperform	₹91.68B	33.59	―	2.62%	1.68%	-12.95%
MPHASIS	73 Outperform	₹399.20B	30.05	―	1.94%	8.73%	11.33%
KPITTECH	66 Neutral	₹181.32B	59.84	―	0.69%	13.34%	5.98%
COFORGE	63 Neutral	₹365.84B	55.81	―	0.88%	41.97%	38.73%
LTTS	62 Neutral	₹342.91B	39.06	―	1.19%	14.88%	-2.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

KPIT Technologies Limited Corporate Events

KPIT details investor interactions at IIFL Entrepreneurial India Conference

KPIT Technologies Limited said its officials met a broad range of domestic and international investors and analysts at the IIFL 17th Entrepreneurial India Conference 2026 in Mumbai on 24 February. The interactions included one-to-one and group meetings with major asset managers, mutual funds, insurance companies and portfolio managers across the Indian and global investment community.

The company reiterated that it only discussed information already disclosed during its January 30 earnings call, emphasizing that no unpublished price-sensitive information was shared in these engagements. The disclosure under listing regulations underscores KPIT’s ongoing investor-relations efforts and its focus on maintaining regulatory compliance and transparency in communications with market participants.

KPIT Technologies Publishes Q3 FY26 Post-Earnings Call Transcript

KPIT Technologies Limited has released the transcript of its post-earnings conference call for the quarter ended 31 December 2025, following a call held on 30 January 2026 with senior management and investors. The company has made the full transcript available to shareholders and the public on its website, aligning with regulatory disclosure requirements and reinforcing transparency around its financial performance and strategic commentary for the quarter.

KPIT Technologies Seeks Stock Exchange Nod to Reclassify Two Promoters as Public Shareholders

KPIT Technologies Limited has applied to both BSE and NSE for the reclassification of two outgoing promoters, Ajay Shridhar Bhagwat and Ashwini Ajay Bhagwat (jointly with Ajay Shridhar Bhagwat), from the ‘Promoter’ category to the ‘Public’ category. The combined shareholding of these outgoing promoters amounts to 2,246,839 shares, representing 0.82% of the company’s total capital, and the move, following prior board approval and disclosures, signals a minor change in the promoter group structure with limited impact on overall ownership but formalizes their status as public shareholders in line with regulatory requirements.

KPIT Technologies Publishes General Shareholder Notice in Leading Dailies

KPIT Technologies Limited has notified stock exchanges that it has published a general notice to shareholders in leading newspapers, including the Indian Express, Financial Express and Loksatta, in line with disclosure obligations under the SEBI Listing Regulations. The company has also made these advertisements available on its website, underscoring its focus on regulatory compliance, transparency and formal communication with shareholders and market participants.

KPIT Technologies Posts Earnings Call Audio on Investor Website

KPIT Technologies Limited has informed stock exchanges that the audio recording of its post-earnings conference call held on January 30, 2026, is now available on its investor relations section of the company website. By making this recording publicly accessible, KPIT enhances transparency and disclosure standards for investors and analysts, supporting more informed evaluation of its financial performance and corporate strategy.

KPIT Technologies Initiates Electronic Postal Ballot to Secure Shareholder Nod for Special Resolution

KPIT Technologies Limited has launched a postal ballot process conducted exclusively through remote e-voting to seek shareholder approval for a special resolution, in line with provisions of the Companies Act, SEBI Listing Regulations and recent circulars from the Ministry of Corporate Affairs. The company has appointed J. B. Bhave & Co. as scrutinizer, engaged NSDL to provide the e-voting platform, and set the voting window from 3 February to 4 March 2026, with results to be published within two working days on its website and communicated to both NSE and BSE, underscoring its compliance focus and use of digital channels to involve shareholders in key corporate decisions.

KPIT Technologies Publishes Q3 FY2025 Unaudited Results in Leading Dailies

KPIT Technologies Limited has notified the stock exchanges that it has published its unaudited consolidated financial results for the quarter and nine months ended December 31, 2025, in leading English and Marathi newspapers, in compliance with Regulation 47 of SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015. The disclosure underscores the company’s adherence to regulatory transparency and investor communication norms, ensuring wider public access to its financial performance through multiple newspaper publications.

KPIT Founders Seek Reclassification from Promoters to Public Investors

KPIT Technologies has disclosed that early founders and existing promoters, Mr. Ajay Bhagwat and Ms. Ashwini Bhagwat, have requested reclassification of their status from the ‘Promoter’ category to the ‘Public’ shareholder category. The company clarified that the two have not been involved in KPIT’s day-to-day operations for around two decades, have not served on its board for the past 10 years, and are primarily engaged in their own separate business, Renu Electronics, which designs and manufactures industrial automation products. Their current shareholding in KPIT is described as a purely financial investment, and the company emphasized that the proposed reclassification will not affect its governance, management, or control structure. The move is subject to approvals from KPIT’s Board of Directors as well as from BSE and the National Stock Exchange of India.

KPIT Technologies Promoters Seek Reclassification of 0.82% Stake to Public Category

KPIT Technologies has disclosed that two of its promoters, Ajay Shridhar Bhagwat and Ashwini Ajay Bhagwat, have requested reclassification of their combined 0.82% stake—comprising 2,24,68,839 shares—from the ‘Promoter’ category to the ‘Public’ category. Following this proposed change, which remains subject to approval by the company’s board and both stock exchanges, the overall promoter and promoter group holding would decline from 39.42%, signaling a marginal reduction in concentrated promoter ownership while increasing the effective free float available to public investors.