KPIT Technologies Navigates Profit Dip with Strategic Moves

KPIT Technologies reported a significant 28.7% drop in net profit due to new labour codes despite a revenue increase. The company is focusing on strategic growth, acquiring new partnerships, and enhancing AI-led mobility solutions.

KPIT Technologies, a leading mobility and automotive solutions company, announced a 28.7 percent decline in its consolidated net profit for the December quarter, bringing it down to Rs 133.30 crore. This decline is attributed mainly to the impact of newly implemented labour codes. Comparatively, the company had a profit of Rs 186.97 crore in the same quarter of FY25.

Despite the dip in profit, KPIT's revenue from operations grew by 9.4 percent, reaching Rs 1,617.45 crore in Q3 FY26, compared to Rs 1,477.95 crore in the previous year. On a quarter-on-quarter basis, KPIT's profit dropped by 21.16 percent, while revenue increased by 1.8 percent, reflecting the challenges posed by the statutory impact of Rs 59.71 crore.

KPIT continues to advance its strategic initiatives, notably integrating Caresoft operations, and focuses on strengthening client partnerships amidst market shifts and AI-led disruptions. The company reported new deal wins valued at USD 202 million and announced a partnership with Hero Motors' HMC HIVE. Additionally, Anup Sable has been appointed as the new Chief Operating Officer to oversee KPIT's transformation.

(With inputs from agencies.)