7 months ago
KPIT Reports 21.2% Net Profit Decline
KPIT Technologies, a company that provides engineering and technology solutions, recently reported a 21.2% decline in net profit for the December quarter.
This decline was mainly due to a one-time expense related to new labour laws and wage increases.
Despite this, the company's revenue grew by 1.9% compared to the previous quarter.
The company is facing challenges as many of its customers are cutting their spending on engineering and research.
However, KPIT is focusing on growing markets like India and China and is developing new solutions using artificial intelligence.
The company's stock fell by 5.7% after the results were announced.
Overall, while the current quarter was challenging, the company expects to perform better in the next fiscal year.
KPIT Technologies reported a 21.2% sequential decline in net profit to ₹133.30 crore for the December quarter.
The decline was attributed to a one-time expense of ₹59.71 crore due to the new labour code and wage hikes.
Revenue grew by 1.9% quarter-on-quarter to ₹1,617 crore, with EBITDA margin at 20.6% in Q3 FY26.
The company is facing challenges due to cuts in engineering and R&D spending by customers, with budgets frozen in many traditional areas.
KPIT is focusing on the Indian and Chinese markets and developing new AI-infused solutions for vehicle manufacturing and applications.
- Who
- KPIT Technologies
- What
- Reported a 21.2% sequential decline in net profit for the December quarter
- Where
- Global, with a focus on Indian and Chinese markets
- When
- December quarter (Q3 FY26)
- Why
- Due to a one-time expense related to the new labour code and wage hikes, and cuts in engineering and R&D spending by customers
Key facts
- Company
- KPIT Technologies
- Net Profit Decline
- 21.2% sequential decline to ₹133.30 crore
- Revenue Growth
- 1.9% quarter-on-quarter to ₹1,617 crore
- EBITDA Margin
- 20.6% in Q3 FY26
- One-Time Expense
- ₹59.71 crore due to new labour code and wage hikes
- Future Growth Outlook
- FY27 expected to outperform FY26
- Market Focus
- Indian and Chinese markets
- AI Solutions
- Digital cockpit technology, cybersecurity, navigation, diagnostics, and after-sales services
- Stock Performance
- Fell by 5.7% to ₹1,042.80 on BSE
Quotes
Sachin Tikekar
Co-founder and joint managing director of KPIT
“The auto engineering and R&D spending has drastically declined since 2024, continuing into 2025, with clients cutting budgets by approximately 24-25%. Apart from chip makers and cloud companies, all other players have been impacted.”
financialexpress.com
Sources
KPIT net down 21.1% OEMs cut engineering, R&D spending
Bajaj Q3 Results 2026 LIVE: What to expect from the auto major in December quarter results?
KPIT Tech revenues at $181 million in Q3 FY26, its 22nd straight quarter of revenue growth
