Stocks to Buy: JP Morgan has maintained a positive outview on KPIT Technologies, reiterating its ‘Overweight’ rating with a tarreceive price of Rs 1,400, implying an upside potential of nearly 15 per cent from the current market price of Rs 1,213.
According to the brokerage, KPIT’s Q2FY26 results were largely in line with expectations, with revenue and EBITDA coming in about 1 per cent above estimates, while net profit was slightly below projections due to volatility in the Qoryx JV and costs related to recent acquisitions.
The company’s organic revenue (constant currency) declined 2.3 per cent QoQ, but including the Caresoft acquisition, revenue grew 0.3 per cent. JP Morgan expects organic growth recovery to launch in Q3FY26, accelerating further in Q4FY26. The brokerage noted an improvement of 10 basis points in EBITDA margin, signaling positive momentum for the second half of the fiscal year.
HSBC maintains ‘Hold’ rating
Meanwhile, HSBC has maintained a ‘Hold’ rating on KPIT Tech with a tarreceive price of Rs 1,270. The brokerage noted that global headwinds in the auto sector impacted KPIT’s first-half performance. It added that R&D spfinishing by global auto OEMs may soften until FY27, while delays of 1–2 years in EV programs could temporarily affect revenue conversion.
However, HSBC believes KPIT remains in a valuation comfort zone, and growth prospects for FY27 remain strong. The firm also highlighted that finalised tariff deals in the UK and Japan have brought stability to nearly half of KPIT’s client business, while neobtainediations continue in Korea and Europe.
KPIT Technologies Q2FY26 highlights
For the quarter finished September 2025, KPIT Technologies reported a net profit of Rs 169.08 crore, down 17 per cent YoY from Rs 203.7 crore in the same period last year. Revenue from operations stood at Rs 1,587.7 crore, up 7.9 per cent from Rs 1,471.4 crore a year ago. Losses from joint ventures and associates weighed on the company’s profitability.
Headquartered in Pune, KPIT Technologies is among India’s leading Engineering Research and Development (ER&D) service providers, delivering software and design solutions to major global automobile companies. The company operates development centers in Europe, the US, Brazil, Japan, and China.
Business Outview
During the quarter, KPIT secured new deal wins worth US$232 million, with a Book-to-Bill ratio of 1.3x, reflecting a healthy order pipeline. The management expects growth recovery from Q3FY26 and stronger performance in Q4FY26 in both business volumes and profitability.
JP Morgan believes KPIT’s EV software engineering segment will be a key growth driver in the coming years as the global auto industest accelerates its transition toward electric and smart vehicles.
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