KPIT Stock Seen Reaching Rs 970 by Motilal Oswal: Buy Recommendation

KPIT Technologies Sees Revenue Growth in 4QFY26, Maintains Strong Position in ER&D Space

KPIT Technologies, a leading player in the automotive software and engineering services sector, reported revenue of USD185 million in 4QFY26, marking a 1.8% quarter-over-quarter (QoQ) growth in constant currency (CC) terms. This growth outpaced the research firm Motilal Oswal's estimate of 1% expansion.

The commercial vehicles segment was a key contributor to KPIT's revenue growth, with a 11.6% QoQ increase. In contrast, the passenger car segment experienced a decline of 0.2% QoQ. The company's earnings before interest and taxes (EBIT) margin stood at 15.9%, a 25 basis point (bp) improvement from the previous quarter. This margin was largely in line with Motilal Oswal's estimate of 16%.

Despite the revenue growth, KPIT's adjusted profit after tax (PAT) took a hit, declining 9.6% QoQ and 18.4% year-over-year (YoY) to INR1,630 million. This fell short of Motilal Oswal's estimate of INR2,165 million.

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Motilal Oswal Reiterates BUY Rating for KPIT

Despite the short-term challenges, Motilal Oswal remains optimistic about KPIT's long-term prospects. The research firm believes that KPIT remains one of the better-positioned engineering and research and development (ER&D) plays within the automotive software space. Consequently, Motilal Oswal has reiterate its BUY rating for KPIT, with a revised target price of INR970 per share, based on 25 times the company's estimated earnings per share (EPS) for FY28.

Note: The table shows a comparison of KPIT's estimated and actual growth in 4QFY26, as well as the performance of the company's commercial vehicles and passenger car segments.

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