KPIT Technologies Share Price Falls 5% as Net Profit Declines 33% YoY

KPIT Technologies share price falls 5 per cent on Wednesday after announcing its Q4FY26 results. Net profit for Q4FY26 declined by 33.41 per cent.

The company also announced a final Dividend of Rs 5.25 per equity share of Rs 10 each, subject to shareholder approval at the ensuing Annual General Meeting.

Revenue Growth Continues in Q4FY26

For Q4FY26, KPIT Technologies reported revenue from operations of Rs 1,711.00 crore, up 11.95 per cent from Rs 1,528.34 crore in Q4FY25. On a sequential basis, revenue was up 5.78 per cent from Rs 1,617.46 crore in Q3FY26. Total income for the quarter stood at Rs 1,723.06 crore, up 9.43 per cent year-on-year and up 4.33 per cent quarter-on-quarter.

However, the rise in expenses was higher than the growth in revenue. Total expenses for Q4FY26 stood at Rs 1,492.90 crore, up 17.32 per cent from Rs 1,272.46 crore in the same quarter last year. Sequentially, expenses increased by 6.13 per cent from Rs 1,406.63 crore in Q3FY26. Employee benefit expenses remained the largest cost component at Rs 1,046.48 crore, up 9.58 per cent year-on-year.

Profit Declines YoY, But Improves Sequentially

KPIT’s profit before exceptional items and Tax stood at Rs 224.65 crore in Q4FY26, down 28.95 per cent from Rs 316.18 crore in Q4FY25. On a quarter-on-quarter basis, this was down 6.69 per cent from Rs 240.75 crore in Q3FY26.

Profit before tax for Q4FY26 stood at Rs 224.65 crore, down 28.95 per cent year-on-year, but up 24.08 per cent sequentially from Rs 181.04 crore in Q3FY26. The sequential rise in reported PBT was aided by the absence of an exceptional item in Q4FY26. In Q3FY26, the company had reported an exceptional impact of Rs 59.71 crore related to the statutory impact of the New Labour Codes.

Consolidated profit after tax for Q4FY26 stood at Rs 162.97 crore, down 33.41 per cent from Rs 244.73 crore in Q4FY25. Compared with Q3FY26 PAT of Rs 133.41 crore, profit was up 22.16 per cent. Basic earnings per share stood at Rs 5.99, down from Rs 9.01 in Q4FY25, but higher than Rs 4.90 in Q3FY26.

FY26 Revenue Up, But Profitability Moderates

For the full year FY26, KPIT Technologies reported consolidated revenue from operations of Rs 6,454.93 crore, up 10.49 per cent from Rs 5,842.35 crore in FY25. Total income stood at Rs 6,540.67 crore, up 8.84 per cent from Rs 6,009.67 crore in the previous year.

Total expenses for FY26 increased to Rs 5,571.33 crore, up 14.17 per cent from Rs 4,879.92 crore in FY25. Profit before exceptional items and tax stood at Rs 931.77 crore, down 17.73 per cent from Rs 1,132.55 crore. After including the exceptional impact of Rs 59.71 crore, profit before tax stood at Rs 872.06 crore, down 23.00 per cent year-on-year.

Net profit for FY26 stood at Rs 637.37 crore, down 24.09 per cent from Rs 839.60 crore in FY25. Basic EPS for the year stood at Rs 23.43, down from Rs 30.93 in the previous year.

Segment Performance

In Q4FY26, UK & Europe remained the largest segment by revenue before inter-segment eliminations. The segment reported revenue of Rs 885.99 crore, up 28.14 per cent year-on-year and up 2.06 per cent quarter-on-quarter. Rest of the World revenue stood at Rs 878.66 crore, up 3.92 per cent year-on-year and up 18.48 per cent sequentially. Americas revenue came in at Rs 456.86 crore, up 5.12 per cent year-on-year and up 4.42 per cent quarter-on-quarter.

For FY26, UK & Europe revenue stood at Rs 3,309.20 crore, up 13.58 per cent from FY25. Americas revenue was Rs 1,793.86 crore, up 10.03 per cent, while Rest of the World revenue stood at Rs 3,221.30 crore, up 7.23 per cent.

Balance Sheet and Cash Flow

KPIT’s consolidated total assets stood at Rs 7,256.40 crore as of March 31, 2026, up 44.18 per cent from Rs 5,032.96 crore as of March 31, 2025. Total equity stood at Rs 3,548.88 crore, up 21.86 per cent from Rs 2,912.16 crore. Total liabilities increased to Rs 3,707.51 crore, up 74.82 per cent from Rs 2,120.80 crore. Cash and cash equivalents stood at Rs 1,318.45 crore, up 7.79 per cent from Rs 1,223.18 crore.

Net cash generated from operating activities stood at Rs 1,194.77 crore in FY26, down 14.02 per cent from Rs 1,389.53 crore in FY25. Net cash used in investing activities stood at Rs 1,186.06 crore, compared with Rs 568.98 crore in FY25. Financing activities generated net cash of Rs 88.91 crore in FY26, compared with a net outflow of Rs 342.44 crore in FY25.

Strategic Stake in Cymotive

Along with the results, KPIT’s board approved the acquisition of a strategic stake in Cymotive Technologies LTD, an Israel-headquartered automotive cybersecurity company. Cymotive focuses on securing software-defined vehicles, connected vehicles and fleet ecosystems across the vehicle lifecycle.

KPIT will initially invest USD 10 million in preference capital, with expected closure by mid-June 2026. This investment may convert into 26 per cent equity capital based on performance milestones, and KPIT may later acquire the remaining stake to own 100 per cent of Cymotive by mid-2029. The total consideration is expected to be between USD 60 million and USD 120 million, including the upfront USD 10 million.

Disclaimer: The article is for informational purposes only and not investment advice.