KPIT Technologies Q2 Results, October 28, 2026: Profit Falls 29% but Stock Gains

The KPIT Technologies Q2 results landed with a weak headline number and a stock that went up anyway. Consolidated net profit for the September quarter fell nearly 29% year-on-year to ₹121 crore, against ₹169 crore a year ago, Business Standard reported. Yet the shares gained as much as 5% on Wednesday, October 28, according to CNBC-TV18. That gap between the number and the price move is the real story here.

KPIT Technologies Q2 results: the key numbers

• Net profit: ₹121 crore, down nearly 29% from ₹169 crore a year earlier (consolidated).
• Revenue from operations: ₹1,691 crore, up 6.5% from ₹1,588 crore a year ago.
• Passenger car revenue: USD 132.36 million, down 7.8% year-on-year.
• Commercial vehicle revenue: USD 39.98 million, up 27.3% year-on-year.
• Total contract value (new deals signed in the quarter): USD 213 million.

Why profit fell while revenue grew

KPIT writes software for carmakers, so it lives and dies by their budgets. Right now the European passenger car makers are under real strain. Co-founder and joint MD Sachin Tikekar told analysts on the earnings call that European sales keep sliding, margins are squeezed and cost cuts are likely to run for a few more quarters, largely because of competition from Chinese automakers, both in China and abroad. He also said decisions on new deals are slower, even though the pipeline is bigger.

Two clients explain most of the damage. KPIT’s top two accounts, one in Europe and one in Japan, declined 13% year-on-year, CNBC-TV18 reported, and the company offset part of that with growth from off-highway, truck and passenger vehicle clients. Management expects those two accounts to bottom out over the next couple of quarters.

There were also some one-off-looking drags below the operating line. The quarter carried a forex loss of ₹17.1 crore, slightly bigger than ₹16.3 crore in the June quarter. KPIT’s share of losses from Qorix, its joint venture with the ZF group, widened to ₹15.6 crore from ₹14 crore in June because of revenue delays. Management expects both to shrink from the current quarter.

So why did the stock rise?

Because the market compared this quarter with the last one, not just with last year. Sequentially, net profit was up 4.3%, and the company told investors it is on track for margin expansion, helped by revenue mix, growth and AI-led productivity gains, per CNBC-TV18. When a stock has been hammered, a quarter that is “less bad” with a clear story on margins can be enough. The shares were trading 3.6% higher at ₹551 after the results, and CNBC-TV18 noted the stock is down 52% so far this year.

The segment split is worth a second look too. Commercial vehicles grew 27.3% while passenger cars shrank, and Tikekar pointed to India as the fastest-growing passenger car market, with momentum at Indian carmakers and some foreign ones. If you want a framework for reading results like these beyond the headline profit, our guide on how to analyse quarterly results of a company walks through it step by step.

What we’ll be watching

Three things. First, whether the two big accounts really do bottom out over the next two to three quarters, as management says. Second, whether the forex and Qorix losses actually narrow from the December quarter. Third, how much of the USD 213 million in new deals turns into revenue as clients get less nervous. For more from this results season, see our take on Meesho’s Q2 numbers and Anant Raj’s Q2 results.

Sources: Business Standard, CNBC-TV18.

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before investing.