KPIT Q2 Review — Growth To Re-Accelerate From Q4 Says Motilal Oswal Reiterating 'Buy', Sees 26% Upside,

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Motilal Oswal Report

KPIT Technologies Ltd. stands to benefit from OEMs’ transformation programs toward software-defined vehicles, driven by its strong software engineering capabilities. However, client reprioritization and delays in production development timelines for new architectures have weighed on momentum.

KPIT’s transition from services to solutions should help it retain competitiveness in a challenging environment. Furthermore, the CareSoft acquisition is expected to support growth recovery in H2.

That said, due to higher depreciation linked to the CareSoft acquisition and a miss on other income, we cut our FY26 estimates by ~4%.

Nevertheless, with an expected EPS CAGR of 14% over FY25–28, outpacing most peers in the engineering research and development space and continued leadership in the automotive software vertical, we reiterate our Buy rating with a target price of Rs 1,500 (26% upside), valuing the stock at 38 times Jun’27E earnings per share.

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