The Pune-headquartered KPIT Technologies has reported a growth of 41.2 per cent in its profit to ₹839.6 crore in FY25, from ₹594.5 crore a year earlier. Revenue for the just concluded fiscal climbed 19.9 per cent to ₹5,842.3 crore. The automobile-focused KPIT is aiming for AI technology and off-highway exploration to drive growth in FY26.
“On the back of strong deal wins for strategic engagements, coupled with the potential acquisition of specialised companies, we are positive about our medium-term growth trajectory,” said Kishor Patil, Co-founder, CEO, and MD of KPIT, during the post-earnings call.
The company has reported a 48.9 per cent growth in its consolidated net profit for Q4FY25, rising to ₹244.7 crore, while revenue during Q4 surged 15.9 per cent to ₹1,528.3 crore.
Shaping the future AI trends
The management of KPIT aims to continue its investment in technologies, platforms, and accelerators to provide OEMs with swift solution delivery, with a special focus on automotive industry-specific AI. This will address the recurring demand from OEMs to reduce cycle time, said Patil.
“I think AI for us is taking the form of moving from a moped to a fighter plane, and there will be deployments happening across the board for that. That is how we look at AI at the moment,” added Patil.
To drive its next period of growth, KPIT plans to work on advanced features, autonomous features (Level 2 plus), new vehicle programmes, and cost reduction of technologies. The company believes these features will be in high demand in the coming years.
Expansion plans
The auto technology major is also eyeing new geographic boundaries, mobility adjacencies like off-highway, and cybersecurity for medium-term growth.
Currently, the company’s growth is driven by the European market. However, KPIT is strategising for more balanced growth across its clients with revived momentum from the US. Around 75 per cent of KPIT’s growth is coming from passenger cars, said Sachin Tikekar, Co-founder and Joint MD of KPIT. “We started to double down on trucks and, more recently, on off-highways,” he added.
“Our investments in adjacencies have yielded results with engagements initiated with two leading truck makers and one key player in off-highway. Our strong deal pipeline, opening of large engagements with the likes of MBRDI for Mercedes-Benz, and the eager response to our solutions at global tech forums like CES, Bharat Mobility, and the Shanghai Auto Expo give us confidence to add consistent value to clients,” said Tikekar.
The company is already in talks with a leading OEM for its off-highway business, though the management didn’t disclose the name of the automaker. KPIT also has a few clients on the US front.
