KPIT Tech Q3 Results: Management Explains Profit Dip, Deal Wins & FY27 Outlook

In Business Today's segment, anchor Shailendra Bhatnagar discusses KPIT Technologies' Q3 FY26 results with Joint MD Sachin Tikekar and CFO Priya Hardikar. The company achieved its 22nd consecutive quarter of revenue growth, with revenues up 9.4% YoY to ₹1,617 crore (or $181 million, +3% YoY in USD), driven by off-highway, powertrain, after-sales, and diagnostics domains. EBITDA margin held steady at 20.6% despite partial wage hikes. Net profit dipped ~29% YoY to ₹133 crore due to a one-time ₹47-59 crore impact from new Indian labor code changes; adjusted PAT rose to ~₹180 crore (11.2% margin).Client conversations turned positive after a tough 2025, with increased spend on digital cockpits, Level 3 ADAS, cybersecurity, and diagnostics in passenger cars; trucks expected to recover in H2 2026, off-highway remains strong. Pipeline stands at ~$202 million in wins. Q4 FY26 expected as a strong revenue quarter; FY27 projected better than FY26 with sustained 20.5-21% margins via AI-infused solutions, fixed-price projects, and efficiency gains. Hiring selective in niche areas; focus on AI domain agents and balanced growth across segments.