KPIT Technologies Limited – Investor Presentation Summary

Key Operational Highlights

  • Revenue from Operations: ₹16,749.94 million (Q1 FY27)
  • Total Wins: $257 million worth engagements closed in Q1 FY27
  • Headcount: 12,000+ employees globally
  • Development centers across Europe, USA, Japan, China, Thailand, Tunisia, Vietnam and India
  • Key drivers: Diversification across clients, geographies, mobility segments and AI-powered offerings

Segment-wise Performance

By Verticals:
  • Passenger Cars: $138.07 million, declined 5.1% YoY and 2.4% QoQ
  • Commercial Vehicles: $33.99 million, grew 29.1% YoY but declined 12.2% QoQ
By Service Lines:
  • Feature Development & Integration: $102.98 million (Electrification, AD-ADAS, Body Electronics and VEDM)
  • Architecture & Middleware Consulting: $32.08 million (Middleware, AUTOSAR)
  • Cloud Based Connected Services: $41.71 million (Intelligent Cockpit, Digital Connected Solutions and Diagnostics)
By Geography:
  • US: $53.93 million, grew 4.0% YoY and 10.5% QoQ
  • Europe: $87.83 million, grew 11.4% YoY and 1.2% QoQ
  • JKC (Japan, Korea, China): $28.00 million, declined 29.7% YoY and 25.0% QoQ
  • SIMA (South-East Asia, India, Middle East, Africa): $7.00 million, declined 3.6% YoY and 41.1% QoQ

Financial Highlights

  • Revenue: ₹16,749.94 million
  • EBITDA: ₹2,877.72 million (17.2% margin)
  • EBIT: ₹2,052.35 million (12.3% margin)
  • PAT: ₹1,164.12 million (7.0% margin)
  • EPS (Basic): ₹4.30
  • EPS (Diluted): ₹4.28
  • YoY Comparison: Revenue grew 8.9% YoY in INR terms, but flattish in constant currency terms
  • QoQ Comparison: Revenue declined 3.6% in constant currency terms
  • Drivers: Impacted by forex loss of ₹162.77 million and share of loss from Qorix at ₹140.47 million
  • Effective Tax Rate: 25.2%

Geographical Revenue Split

  • USD: 31.5% of total revenue
  • EUR: 37.9% of total revenue
  • GBP: 9.5% of total revenue
  • JPY: 14.4% of total revenue
  • INR: 3.4% of total revenue
  • Others: 3.3% of total revenue

Balance Sheet Snapshot

  • Total Assets: ₹72,031.60 million
  • Property, Plant & Equipment: ₹2,451.81 million
  • Goodwill & Other Intangibles: ₹33,532.13 million
  • Cash and Bank: ₹13,140.79 million
  • Trade Receivables: ₹9,524.69 million
  • Total Equity: ₹36,862.75 million
  • Borrowings: ₹4,124.27 million (Current ₹3,174.24 million + Non-current ₹950.03 million)
  • Net Cash: ₹9,017 million
  • DSO: 51 days

Capex & Cash Flow Health

  • R&D Expenditure: $4.37 million (investments in AI and software products)
  • Capitalization: ₹122 million recognized as Intangible Assets under Development for AI and software products
  • Cash Movement: Net cash decreased from ₹9.65 billion last quarter to ₹9.02 billion
  • Cash Composition: ₹1,039 million in India investment accounts, ₹4,201 million in overseas investment accounts, ₹7,901 million in operating accounts

Strategic & R&D Initiatives

  • Beacon: Next-generation Mobility Intelligence Product going across multiple global OEMs
  • AI Integration: AI-powered products and solutions across portfolio including AI-defined mobility, vehicle engineering, digital cockpit, autonomous technologies
  • Geographic Expansion: New technology center in Hanoi, Vietnam with partnerships with HUST and VinUniversity
  • AirConsole: Entry into Indian market through Tata Motors partnership on Sierra.ev
  • Sustainability: Committed to SBTi with Net Zero target by 2050, targeting ≥40% reduction in net emissions by 2030 from 2025 baseline

Industry Trends & Business Environment

  • Industry Headwinds: Passenger Car OEMs in Germany, France, UK and Japan implementing cost control measures including job cuts, profit warnings, pay cuts
  • Challenges: Chinese competition, US Tariffs, falling profitability affecting auto players
  • KPIT Response: Expanding to new Passenger Car OEMs in Japan, Korea, Europe; growing Off-highway and Trucks business; exploring Micro Mobility adjacencies

Management Commentary & Growth Outlook

Kishor Patil: "Q1FY27 performance slightly ahead of outlook... strategy to diversify growth across clients, geographies, mobility segments and offerings is beginning to demonstrate its resilience... positioned well to return to stronger growth in H2FY27 and beyond."

Sachin Tikekar: "Priority is disciplined execution... expanding presence in high-growth client accounts, accelerating momentum in trucks and off-highway, building relationships with new passenger vehicle manufacturers... steadily building a broader, more resilient growth engine."

Outlook: Margins expected to improve successively every quarter, aided by revenue mix and growth and AI led productivity gains

Other Updates

  • Kishor Patil appointed as Vice Chairperson of Nasscom Executive Council
  • Featured in Automobil Elektronik cover story on generative AI in software-defined vehicles
  • Expanded presence in Vietnam with new technology center in Hanoi
  • Participation in multiple industry events including Bentley Motors Supplier Engagement Day, Motor Valley Fest, China Commercial Vehicle IOV Summit
  • CSR initiatives impacting over 11 lakh beneficiaries
  • CDP rating improved to B- for water security and B for climate change