KPIT Technologies (KPITTECH) Q2 26/27 earnings summary

Executive summary

• Q2FY27 performance was broadly in line with expectations; revenue grew 6.5% YoY in rupees and 0.2% YoY in constant currency, while dollar revenue declined 2.2% YoY.

• Growth across Trucks & Off-Highway, products and other accounts partly offset a ~13% YoY decline in the two largest accounts.

• Revenue broadened across Trucks & Off-Highway, passenger vehicles, Connected Vehicles and Aftersales; H2 is expected to outperform H1.

Financial highlights

• Q2 consolidated revenue was ₹16,909.66M versus ₹15,877.11M YoY; EBITDA was ₹3,006.20M, EBIT ₹2,147.07M and profit ₹1,206.57M.

• Q2 dollar revenue was $176.8M, flattish QoQ and down 2.2% YoY; revenue grew 1.0% QoQ in rupees.

• EBITDA margin rose to 17.8% from 17.2%, mainly on a higher product contribution; EBITDA grew 4.5% QoQ and PAT 2.9% QoQ.

• Services revenue was flattish; product revenue grew 5% QoQ and 25% YoY.

• H1 revenue was ₹33,659.60M versus ₹31,264.72M YoY, while profit declined to ₹2,370.69M from ₹3,409.86M.

Outlook and guidance

• H2 is expected to be better than H1, with Q4 growth expected; no numerical growth forecast was provided.

• The two largest accounts are expected to bottom out over the next couple of quarters, followed by gradual growth; broader account growth is expected to offset continued declines.

• EBITDA margin is expected to rise to some extent each quarter, with a return to the 20%–21% range expected only early next year.

• Near-term margin expansion is supported by mix, operational efficiency and AI-led productivity; forex and Qorix losses are expected to reduce from Q3.

• Medium-term opportunities include broader market presence, diversified accounts and AI-powered offerings; trucks and off-highway are expected to keep growing.