KPIT Technologies shares declined 6.06 per cent to ₹1,306 on NSE at 1.30 pm today, following the company’s mid-quarter update that highlighted slower-than-expected business conversions and revenue ramp-ups.

The automotive technology company released its June 2025 mid-quarter update yesterday, revealing that while the business pipeline remains strong, conversions are taking longer than anticipated. The company cited rising geopolitical concerns and uncertainty around tariff scenarios as key factors affecting the overall business environment.

KPIT noted that ramp-ups for recent wins are progressing at an even slower pace than expected at the end of the last quarter. The company also flagged revenue cannibalization in some new wins due to limited client budgets being allocated to immediate priority areas.

Geographically, Europe appears positive while the US and Asia markets remain uncertain. The company reported some early wins in the trucks and off-highway segment, though these are described as small.

On the acquisition front, KPIT’s board approved the 100 per cent acquisition of Caresoft’s Global Engineering Solutions Business in May 2025. The deal closure is expected by the end of this quarter, with revenue consolidation beginning in Q2FY26. The acquisition is projected to contribute around 4 per cent growth in FY26 over FY25.

The company expects no one-time gains in Q1FY26, unlike Q4FY25, and anticipates additional deficits in other income due to sudden forex rate movements.

Published on June 24, 2025