KPIT Tech shares fall 3% as Q1 profit drops; here's what the brokerages say

KPIT Technology share price today: Shares of KPIT Technologies fell nearly 3 per cent on Thursday, on the NSE, after the company reported its June 2025 quarter (Q1FY26) results. The stock touched an intra-day low of ₹1,233.

 

At 1:45 PM, KPIT was trading 1.4 per cent lower at ₹1,250.8 on the NSE. In comparison, the NSE Nifty was trading higher by 0.26 per cent at 24,918.25. The stock has crashed around 36 per cent from its 52-week high of ₹1,921 touched on August 28, 2024. 

KPIT Technologies Q1 results

KPIT Technologies on Wednesday reported a net profit of ₹171.9 crore for the quarter that ended on June 30, 2025 (Q1FY26), down 15.8 per cent from ₹204.2 crore in the year-ago period. Sequentially, the profit fell 29.7 per cent from ₹244.7 crore.

 

The computer software & consulting company's revenue from operations rose by 12.7 per cent to ₹1,538.7 crore from ₹1,346.6 crore in Q1FY25. Sequentially, the revenue saw a marginal increase of 0.7 per cent from ₹1,528.4 crore.

 

The company's earnings before interest, tax, depreciation, and amortisation (Ebitda) came in at ₹323.9 crore, up 12 per cent from 288.1 crore in the year-ago period. The company won deals worth $241 million during the June quarter. KPIT Tech also announced a partnership with JSW Motors to build a robust software and digital backbone for its new energy vehicles portfolio.   Check List of Q1 results today

KPIT Technologies Q1 results analysis: Axis Securities

According to analysts at Axis Securities, KPIT's demand among original equipment manufacturers (OEMs) is increasing as they recognise the need to catch up quickly with better quality and faster validation processes. In addition. AI-driven validation solutions remain a key priority for OEMs. 

 

The company's deal wins have grown strongly, driven by factors such as reprioritisation of existing programs and rising demand for more efficient, solution-based delivery. 

 

"The company remains confident in its strategy and ability to navigate the evolving mobility industry landscape, leveraging its technological prowess and strategic partnerships to drive future growth," the brokerage said in a note.

 

Axis Securities has given a 'Buy' rating on the stock, with a target price of ₹1,385, citing expectations of a stronger recovery driven by a robust deal pipeline across business verticals, new partnerships, and increased adoption of new-age technologies.

Choice Broking

Echoing similar views, Choice Broking said KPIT's strong deal wins and pipeline indicate sustainable long-term growth prospects. However, near-term growth might be expected due to macro uncertainties. "Growth momentum is expected to rebound in the second half of FY26 with Automotive OEMs spending firming up in the next couple of quarters," the brokerage said. 

 

"Despite the current OEM cost pressures, delays in SDV programs & EV timelines outside China, the company foresees margin expansion from a medium to long-term perspective. This expansion will be driven by a strategic shift to fixed-price project delivery, thereby improving profitability on a long-term basis," it added.

 

Choice Broking has maintained 'Add' on the stock with a target price of ₹1,400.