KPIT Tech Q3 net profit dips 29% to Rs 133 cr; revenue up 9.4% to Rs 1,617.45 cr

New Delhi (PTI): Mobility and automotive solutions company KPIT Technologies on Thursday reported a 28.7 per cent decline in consolidated net profit to Rs 133.30 crore for the December quarter, primarily weighed down by a one-time statutory impact related to new labour codes.

The Pune-headquartered company had posted a profit (attributable to owners of the company) of Rs 186.97 crore in the December quarter of FY25.

KPIT's revenue from operations increased by 9.4 per cent to Rs 1,617.45 crore in Q3 FY26, as against Rs 1,477.95 crore in the year-ago period.

Seen on a quarter-on-quarter basis, KPIT's profit fell 21.16 per cent, while revenue rose 1.8 per cent.

During the quarter under review, the company accounted for a statutory impact of Rs 59.71 crore due to the implementation of the new labour codes.

"We are seeing client partnerships deepen as OEMs look for trusted teams who can take stronger ownership and deliver end-to-end outcomes. We see increased traction in trucks and off-highway sub-verticals as we integrate Caresoft operations," KPIT Co-Founder and Joint MD Sachin Tikekar said.

"The market is shifting tectonically -- new entrants, regulations, and AI-led disruption are rewriting the rules. Our clear intent is to move beyond 'SDV' to what the industry is becoming -- 'AI-defined Mobility' and ensure our investments, practices, leadership and delivery depth keep compounding our front-runner advantage," Tikekar said.

The quarter saw the integration of Caresoft and N-Dream. These acquisitions contributed to 3.4 per cent of the QoQ growth but also resulted in significant cash payouts (Rs 435.8 crore for Caresoft and Rs 197.3 crore for N-Dream). The company's net cash stood at Rs 904.6 crore at the end of the quarter.

KPIT acquired additional stakes of 62.9 per cent and 1.1 per cent in October 2025 and December 2025, respectively, in N-Dream AG for a total consideration of 19.17 million euros, making the company its step-down subsidiary.

During the September quarter, the Group, through its wholly owned subsidiaries KPIT Technologies Inc and KPIT Technologies (UK) Ltd, completed a 100 per cent acquisition of the Caresoft Group entities.

The company reported new deal wins with a Total Contract Value (TCV) of USD 202 million during the quarter.

This included strategic engagements with a leading European car manufacturer and a Chinese manufacturer in the connected domain.

Steady deal wins will result in better growth in FY27 as compared to FY26, the company said.

KPIT also announced a strategic collaboration with HMC HIVE, a Hero Motors Company, to develop next-generation Light Electric Vehicles (LEVs).

Further, KPIT announced the appointment of Anup Sable as the Chief Operating Officer (COO) of the company with immediate effect.

Sable, who has been with the company for over 30 years, will oversee KPIT's AI-led transformation to a solutions business.

The company's board announced an interim dividend of Rs 2.25 per equity share for FY26.