KPIT Technologies Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript KPIT Technologies Ltd filed with BSE on 13 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
KPIT reported Q4 FY26 revenue growth of 1.8% in constant currency and 12% year-on-year in rupee terms, with EBITDA margin at 20.6% for the quarter and 20.8% for FY26. Management cited $349 million of net new deal wins in the quarter, 18% year-on-year growth in trucks and off-highway, and highlighted headwinds including delayed vehicle programs, a cancelled Honda platform program, and lower than expected growth in middleware and autonomous driving. For FY27, management guided to EBITDA margin of 20.5% to 21.2%, 30% year-on-year growth in solutions and products, and said two large SDV programs were ending which would be largely offset by growth in newly acquired accounts.
Numbers mentioned
Revenue growth (constant currency, QoQ): 1.8% (Q4 FY26)
p. 3
“I think we had a growth of 1.8% in constant currency 1.9% quarter-on-quarter growth in terms of dollar.”
Kishor Patil, page 3 of the filed PDF · View the filing
Revenue growth (rupee, YoY): 12% (Q4 FY26)
p. 3
“In terms of rupee, it, basically it's a growth of 12% and quarter-on-quarter it is 5.8%.”
Kishor Patil, page 3 of the filed PDF · View the filing
Net new deal wins in the quarter: $349 million (Q4 FY26)
p. 3
“The key highlight, if you want to ask me, is the 349 million worth increments closed during the quarter.”
Kishor Patil, page 3 of the filed PDF · View the filing
Pipeline share from products and solutions: 21%
p. 3
“It's a 21% of the total pipeline is already into products and solutions, so it will, It basically gives us a very encouraging sign”
Kishor Patil, page 3 of the filed PDF · View the filing
Cash at quarter end: 9.6 billion (Q4 FY26)
p. 3
“it is 9.6 billion cash at the quarter end, and we have the final dividend, which is 5.25 per share.”
Kishor Patil, page 3 of the filed PDF · View the filing
DSO: 47 days (Q4 FY26)
p. 3
“DSO stood at 47 days.”
Kishor Patil, page 3 of the filed PDF · View the filing
Dividend payout ratio: 33% (FY26)
p. 3
“Dividend is about 33% Kind of a payout”
Kishor Patil, page 3 of the filed PDF · View the filing
Trucks and off-highway revenue growth: 18% year-on-year (FY26)
p. 3
“If you look at the revenue, the little going little down, 18% year-on-year growth in trucks and oƯ-highway”
Kishor Patil, page 3 of the filed PDF · View the filing
Trucks and off-highway growth: 11.6% (Q4 FY26)
p. 3
“And the Q4 growth was also led by trucks and oƯ-highway 11.6% and the second was cloud-based connected services.”
Kishor Patil, page 3 of the filed PDF · View the filing
EBITDA margin: 20.8% (FY26)
p. 3
“EBITDA growth margin is for the year 20.8%. And for this quarter, 20.6%.”
Kishor Patil, page 3 of the filed PDF · View the filing
OEM client revenue growth: 9% year-on-year (FY26)
p. 3
“I think you will hear about it It's a 9% year-on-year growth with OEM clients, which has been our strategy.”
Kishor Patil, page 3 of the filed PDF · View the filing
KPIT wallet share among top clients: about 10% (FY26)
p. 12
“If you take the overall wallet share of KPIT among our top 25 clients is about 10% as of last year.”
Sachin Tikekar, page 12 of the filed PDF · View the filing
New contracts fixed price: more than 80%
p. 13
“More than 80% of our new contracts are fixed price in nature.”
Sachin Tikekar, page 13 of the filed PDF · View the filing
India revenue share: about 4%
p. 20
“Right now, we are about 4% of our revenues are from India and they will increase substantially.”
Kishor Patil, page 20 of the filed PDF · View the filing
New clients added: 13 (FY26)
p. 13
“unlike any other year in the past, we added 13 clients.”
Sachin Tikekar, page 13 of the filed PDF · View the filing
Truck OEM clients added: 4 (FY26)
p. 13
“I'm very happy to say that we have added 4 truck OEMs to our list of clients.”
Sachin Tikekar, page 13 of the filed PDF · View the filing
Off-highway OEM clients added: 6 (FY26)
p. 13
“We have added 6 oƯ-highway OEMs across Four diƯerent countries now.”
Sachin Tikekar, page 13 of the filed PDF · View the filing
M&A external investment: $400 million
p. 6
“We have made strategic external investment of$ 400 million in M&AS, and I will tell you later how it actually stacks, create the full stack story, and how the technology investment is.”
Kishor Patil, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — 20.5% to 21.2% · FY27
stated conditionally by Kishor Patil
p. 17
“EBITDA 20.5 to 21.2 post increasing investment in AI solutions and products competency development and new markets.”
Kishor Patil, page 17 of the filed PDF · View the filing
Solutions and products revenue growth — 30% year-on-year · FY27
stated firmly by Kishor Patil
p. 17
“We expect 30% year-on-year revenue growth in solution and products, and we hope it will increase over the period.”
Kishor Patil, page 17 of the filed PDF · View the filing
India revenue — almost doubling · FY27
stated firmly by Kishor Patil
p. 17
“India, we will be Almost doubling, it's a small base, but doubling the revenue and China, which is also, again, have grown reasonably well”
Kishor Patil, page 17 of the filed PDF · View the filing
Solutions and products share of revenue — 50% · medium term
stated as an aspiration by Kishor Patil
p. 18
“Again, go back to the old days 50% revenue share to be achieved from solutions and product.”
Kishor Patil, page 18 of the filed PDF · View the filing
Solutions and products share of revenue — 60% · 3 years
stated as an aspiration by Kishor Patil
p. 18
“which will move to 60% in 3 years.”
Kishor Patil, page 18 of the filed PDF · View the filing
EBITDA margin — 22% to 24% · medium term
stated as an aspiration by Kishor Patil
p. 18
“So we expect the EBITDA to be between 22% to 24% from where we are today.”
Kishor Patil, page 18 of the filed PDF · View the filing
Wallet share in T25 accounts — increase by 20% · this year
stated firmly by Sachin Tikekar
p. 30
“The 10% wallet share, it will increase by 20%. In the immediate future, right? It will not move from 10% to 20% of their wallet share. It will increase by 20% this year.”
Sachin Tikekar, page 30 of the filed PDF · View the filing
Solutions and products growth — 30% plus growth rate
stated as an aspiration by Kishor Patil
p. 6
“We'll grow with 30% plus growth rate in these solutions and products”
Kishor Patil, page 6 of the filed PDF · View the filing
Overall growth — annualized sustainable double-digit growth · medium term
stated as an aspiration by Kishor Patil
p. 18
“We have opportunity for annualized sustainable double-digit growth.”
Kishor Patil, page 18 of the filed PDF · View the filing
Outcome-based/fixed price contracting — north of 75% · this year
stated firmly by Sachin Tikekar
p. 13
“We'll be converting four of our largest clients in that model in this quarter, and we'll take the next four in the next quarter. And that will pretty much take us north of 75% overall, in terms of having outcome-based and fixed price”
Sachin Tikekar, page 13 of the filed PDF · View the filing
Carbon footprint reduction — more than 40% · 2030
stated firmly by Sachin Tikekar
p. 17
“there is an important milestone that we will hit in 2030, which is reducing our own carbon footprint by more than 40%.”
Sachin Tikekar, page 17 of the filed PDF · View the filing
Net-zero commitment — net-zero organization · 2050
stated firmly by Sachin Tikekar
p. 17
“We are committed to being a net- zero organization by 2050.”
Sachin Tikekar, page 17 of the filed PDF · View the filing
Truck business recovery — second half of 2026
stated conditionally by Sachin Tikekar
p. 14
“The European market as well as North America market is likely to pick up in the second half of 2026.”
Sachin Tikekar, page 14 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the improvement will come from higher gross contribution via solutions and products, higher margins on products and reusable assets, and the shift to fixed-price, AI-infused business models.
Answered by Kishor Patil
Asked by Chandramouli Muthiah: What are the drivers of the EBITDA margin expansion from ~20.5% to 22-24%?
p. 19
“The margin growth will come through As we said, we believe that We will be in a position to increase our gross contribution significantly through our approach of solutions and products”
Kishor Patil, page 19 of the filed PDF · View the filing
Management indicated the gap was roughly 3-4% of quarterly revenue and that it would be partly covered by more work from the same clients and partly by newer clients.
Answered by Kishor Patil
Asked by Chandramouli Muthiah: What is the revenue gap that needs to be covered from the ramp-down of two large SDV programs versus newly acquired accounts?
p. 19
“If it is a 4%, what, the 3 to 4% if you look at our quarter revenue.”
Kishor Patil, page 19 of the filed PDF · View the filing
Management said KPIT can compete favorably outside China through validated products and solutions with strong OEM interest, without directly comparing cost structures.
Answered by Kishor Patil
Asked by Vimal Gohil: How is KPIT's EBITDA margin expansion reconciled with competing against Chinese ER&D specialists operating at negative EBITDA margins?
p. 21
“we can compete with them favorably outside China. In China, we are building our capacity to basically We talked about in the certain products and solutions”
Kishor Patil, page 21 of the filed PDF · View the filing
Management gave OEM-specific views: Toyota remains resilient and dominant in hybrids but is behind on SDV; Nissan is recovering; Honda is troubled and cutting programs, exploring hydrogen and sodium cells.
Answered by Sachin Tikekar
Asked by Hiren Ved: Why do Japanese OEMs appear to have lost momentum globally, and what is KPIT's read on their strategy?
p. 23
“Nissan has been in trouble now, Honda is getting in trouble, and if Toyota doesn't change their ways, they can potentially get in trouble in a couple of years.”
Sachin Tikekar, page 23 of the filed PDF · View the filing
Management said this depends on when new vehicle architecture programs begin, particularly in off-highway and commercial vehicles.
Answered by Kishor Patil
Asked by Arun: When will middleware/Qorix-related revenue normalize?
p. 23
“I think I mentioned a bit that when the new architecture programs will start coming in, I think that's when that will come.”
Kishor Patil, page 23 of the filed PDF · View the filing
Management described Europe as focused on dramatic cost reduction while restructuring supplier ecosystems, whereas North American OEMs (GM, Ford) are investing in future SDV programs given a more protected market.
Answered by Sachin Tikekar
Asked by Moez Chandani: How are European and North American OEMs responding to cost and competitive pressures — are SDV spends changing?
p. 24
“So their strategy is, essentially, they have to dramatically reduce their costs.”
Sachin Tikekar, page 24 of the filed PDF · View the filing
Management said one ramp-down was planned as the program matured into serial production, while the other was an unplanned surprise tied to an OEM's EV program cancellation and write-off.
Answered by Sachin Tikekar
Asked by Moez Chandani: Were the recent large program ramp-downs planned or a surprise, and are more programs expected to end abruptly?
p. 26
“The other one was a surprise, not only to us, but to the rest of the world, when that OEM decided to stop their EV programs”
Sachin Tikekar, page 26 of the filed PDF · View the filing
Management said the planned ramp-down impacted Q3 and Q4 and will be felt more in Q1, while the surprise cancellation will hit more sharply in Q1; Japan growth is expected to broaden beyond a single OEM over the medium term.
Answered by Sachin Tikekar
Asked by Abhishek Gupta: How did the strategic client revenue decline this quarter, and what is the outlook for Japan given Honda's program cuts?
p. 26
“The second one was a surprise, which It was a program, unfortunately very close to the production, right? Unfortunately. So it was there was a little bit of a reduction in Q4 But the dramatic reduction actually happens in Q1.”
Sachin Tikekar, page 26 of the filed PDF · View the filing
Management confirmed this is expected via conversion of fixed-price business into AI-infused solutions plus product growth, describing it as nonlinear growth.
Answered by Kishor Patil
Asked by Soumitra Chatterjee: Does reaching $550-600 million in solutions and products revenue in three years imply 3-4x growth beyond this year's 30%?
p. 28
“We believe, actually. That's a nonlinear growth. We just want to 100%, we cannot say, but we believe that's a very reasonable number.”
Kishor Patil, page 28 of the filed PDF · View the filing
Management said such companies are struggling on revenue and cost competitiveness and that KPIT's products and solutions are superior, without confirming acquisition interest.
Answered by Kishor Patil
Asked by Kawaljeet Saluja: Are European ER&D assets like Bertrandt or EDAG of acquisition interest to KPIT?
p. 29
“most of these companies you are talking about, some of the OEMs have a stake in these companies, but they are preferring to move away, because from their perspective, the value is actually reducing their cost”
Kishor Patil, page 29 of the filed PDF · View the filing
Management explained Cymotive's revenue was affected by Cariad's cost consolidation and shift of work to India, and said KPIT plans to bring Cymotive's cybersecurity capability to other customers.
Answered by Kishor Patil
Asked by Moez Chandani: What drove the historical revenue trajectory of Cymotive and does it work with clients beyond Volkswagen?
p. 31
“I think on the Cariad side, I think it is the same cost issue. They've moved their strategies to move to India most of the work.”
Kishor Patil, page 31 of the filed PDF · View the filing
Risks flagged
AI-led transformation causing near-term cannibalization in some service areas
p. 4
“AI-led transformation led to nearterm cannibalization in some areas.”
Kishor Patil, page 4 of the filed PDF · View the filing
Delayed new vehicle architecture programs reducing middleware and autonomous driving revenue
p. 4
“Lower than expected growth in middleware and autonomous driving.”
Kishor Patil, page 4 of the filed PDF · View the filing
Program cancellations and delays at certain accounts
p. 4
“there were In few accounts, there was a program cancellation and delays in few accounts, and I will talk about it later”
Kishor Patil, page 4 of the filed PDF · View the filing
Honda's cancellation of new platform programs impacting KPIT
p. 5
“Honda, they basically cancelled all their new platform programs And that had an impact on us, and it was very recently, because it happened in the April month”
Kishor Patil, page 5 of the filed PDF · View the filing
European OEMs losing Chinese market share and facing margin pressure
p. 5
“Many of European OEMs lost their Chinese market drastically.”
Kishor Patil, page 5 of the filed PDF · View the filing
Trucking industry slump in North America and Europe
p. 14
“The trucks, they've been going through a slump, just the trucking industry. Mostly in North America and Europe has been going through a slum for the last nine months.”
Sachin Tikekar, page 14 of the filed PDF · View the filing
Potential impact of oil prices and geopolitical conflict on OEM spending if prolonged
p. 20
“I think if it continues beyond three to six months, it'll have repercussions, you That will be macro.”
Sachin Tikekar, page 20 of the filed PDF · View the filing
Large one-time SDV program ramp-down due to OEM EV program cancellation and write-off
p. 26
“when that OEM decided to stop their EV programs The launch of this, and they decided to take a$ 15 billion hit, one-time hit right on their balance sheet.”
Sachin Tikekar, page 26 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.