dropped 5.4% to Rs 1,315 in Tuesday’s intraday trade on the BSE after the company flagged a weak demand environment and slower-than-expected deal closures.The company also announced that its board has approved the 100% acquisition of Caresoft’s Global Engineering Solutions business. However, the deal is subject to certain closing conditions, which both parties are working to fulfil. KPIT expects to complete the transaction by the end of the current quarter, barring unforeseen delays.
The revenues from Caresoft’s business are expected to be consolidated starting Q2FY26 and could add approximately 4% to KPIT’s overall revenue in FY26 over FY25.
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- Strengthening KPIT's position in the Trucks and Off-highway segment
- Expanding its manufacturing engineering portfolio
- Enhancing full vehicle cost-reduction capabilities for clients
- Accelerating entry into the China market
Despite a healthy deal pipeline, KPIT noted slower conversion rates, attributing the caution to geopolitical tensions and uncertainties around global tariff policies. Europe remains a bright spot, while demand from the USA and Asia continues to face headwinds. The company also reported a few early strategic wins in the Trucks and Off-highway space.
Looking ahead, KPIT expects further growth in offshoring to help lower overall costs.
The company also clarified that there will be no one-time gains in Q1FY26, unlike Q4FY25. Additionally, other income may decline due to recent forex fluctuations.
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According to Trendlyne, the average target price for
KPIT Technologies is Rs 1,401, implying an upside potential of around 6% from current levels. Of the 20 analysts tracking the stock, the consensus rating is ‘Buy’.
Is the grey market premium misleading? Decoding the valuation gap in HDB Financial’s IPOThe stock’s Relative Strength Index (RSI) is at 58.7, reflecting neutral momentum. The MACD stands at 24 and remains above both its centre and signal lines, indicating a bullish trend.
(: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
