KPIT Technologies Shares Slide Over 4% After Q4 Profit Drops Despite Revenue Growth

KPIT Technologies shares declined sharply on Thursday, 7 May, after the automotive software company reported lower quarterly profit despite healthy growth in revenue.

At 12:51 pm IST, KPIT Technologies shares were trading at ₹719.60, down 3.87% for the day. The stock opened at ₹748.55, which was also the intraday high, before slipping to a low of ₹709.20 during the session.

The Pune-based automotive software company posted a consolidated net profit of ₹163 Cr for Q4 FY26, compared with ₹245 Cr in the same quarter last year. Revenue from operations, however, rose 12% year-on-year to ₹1,711 Cr from ₹1,528 Cr.

The results reflected a mixed quarter. Revenue growth remained steady, but higher employee costs, finance expenses and material costs weighed on profitability. The company also flagged that global trade and geopolitical uncertainty continued to affect investment decisions across the mobility sector.

Why Is KPIT Betting On AI And Cybersecurity?

Despite near-term pressure on the mobility sector, management indicated that demand conditions have started improving entering FY27.

According to CEO Kishor Patil, strong deal wins and growing opportunities in automotive software are helping improve business visibility.

The company said artificial intelligence is becoming increasingly important in automotive engineering, especially in areas linked to safety systems and regulatory compliance.

KPIT Technologies also announced a strategic investment in Israel-based Cymotive Technologies, an automotive cybersecurity company.

Under the agreement:

• KPIT will initially invest $10 million in preference capital

• The company will acquire a 26% stake in Cymotive

• The transaction is expected to close by mid-June 2026

• KPIT plans to acquire the remaining stake by mid-2029

• Total consideration for the full acquisition could range between $60 million and $120 million

Management said the company’s domain-focused strategy and AI-led solutions are attracting growing interest from global original equipment manufacturers (OEMs).

Also Read - Top 7 Anti-Drone Stocks In India To Watch In 2026

What Else Are Investors Tracking In KPIT Technologies?

Apart from earnings, investors are also monitoring changes in institutional shareholding.

During the March 2026 quarter, foreign institutional investors decreased their stake in KPIT Technologies from 13.57% to 13.25%. Mutual fund holdings also declined during the same period, falling from 13.26% to 12.09%.

The board has recommended a final dividend of ₹5.25 per equity share for FY26. The proposal is subject to shareholder approval at the company’s upcoming annual general meeting.

At current levels, KPIT Technologies has a market capitalisation of around ₹19,430 Cr. The stock’s 52-week high stands at ₹1,434.50, while the 52-week low is ₹624.90.

For now, investors appear to be balancing two factors: pressure on near-term profitability and the company’s longer-term positioning in AI-led automotive software and cybersecurity.

Sources:

ET Auto

CNBC TV18