KPIT Technologies Ltd. has deferred its fiscal 2026 guidance due to a temporary "interruption" in the US market, according to Chief Executive Officer Kishor Patil.
In a conversation with NDTV Profit on Tuesday, Patil expressed confidence in a sustained growth driven by strategic client engagements and a strong deal pipeline in the current financial year.
"I think the current situation in the US is a bit of an interruption. I guess the dust should settle down in a quarter or so. Otherwise, I see no reason," the managing director said.
There are reasons why original equipment manufacturers have to spend and there is a reason why KPIT is going to be a larger part of it, he said, revealing the reason behind the company not offering guidance for the fiscal.
The automotive and mobility software solutions provider did not give any revenue or margin guidance for the fiscal in its earnings call on Monday. In its investor presentation, the company outlined the focus on improving productivity with AI and cost reduction. The company also reiterated a positive momentum in FY26 on the back of a strong order pipeline and potential acquisitions.
KPIT Tech's net profit increased 31% quarter-on-quarter to Rs 244.7 crore and revenue grew 3.4% to Rs 1,528 crore. The company's earnings before interest and tax increased 4.4% to Rs 265 crore in the March quarter.
Despite acknowledging the tough environment and minor instances of discretionary projects not being renewed, Patil expressed strong confidence in the underlying demand from automotive OEMs.
"Where we see some issue, if at all, is the tier one suppliers, which is not a big part of our business, but that's one where there is some kind of volatility. Rest, I think there are many areas of growth," he said.
The CEO also addressed concerns about the first half of FY26 being expected to be muted. "It is not that everything is going to start after Q2... Some of these clients we are transitioning to when we are taking over some of this work from OEMs.... I think the scale-up is a bit slow. I believe it will start growing after that," he added.
He underlined the company's expertise in meeting client needs for next-year start-of-production deadlines. KPIT Tech is also expanding into off-highway and commercial vehicle segments and new markets to diversify growth. The company is eyeing expansion in markets like India and other parts of Asia, excluding China and Japan, and specific European regions.
KPIT Tech reported a robust FY25 performance with significant improvements in profitability, an area where the entire industry struggled. It gives the company a very good runway to enter FY26, Patil added.
The company has struck a significant partnership with Mercedes-Benz Research and Development India, which will draw on KPIT Tech's domain knowledge and experience to re-engineer the technology stack for its next-generation vehicles.
"It's a long-term engagement. It is a very strategic step and something on which we will build over the period," he said.
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