KPIT: Strong deal flow, but can it keep engine humming?

Midcap information technology (IT) company KPIT Technologies, which has carved a niche in automotive software services, is set to bear the brunt of planned cuts in IT investments by automobile original equipment manufacturer clients.

- Harsha Jethmalani

Its a revenue hit of around $65 million recently, of which $45 million stemmed from clients depri-oritizing older programmes across the US, Asia, and parts of Europe, it said in its September quarter (Q2FY26) earnings call.

KPIT expects to cushion the blow through strong order wins—including a large three-year deal from a European automaker—and expansion in the commercial vehicle segment via its Caresoft acquisition. But the global auto industry is facing challenges.