KPIT Technologies Ltd.
IT · NSE
52-week range
₹625 – ₹1,424
From 52w high
-48.8%
RSI (14)
47.7
vs SMA 50 / 200
↑ 50 · ↓ 200
KPIT Technologies (₹728) is an automotive-focused IT company that has declined 42.85% over the past 12 months and trades 30.8% below its 200-DMA of ₹1,052.87. Trailing PE of 31.3x is the highest among its six-peer IT group despite a 33% profit decline in Q4 FY2026 and a 5-year earnings growth rate of -33.5%. The forward PE of 19.94 reflects analyst consensus projecting a meaningful earnings recovery, though recent quarterly results have moved in the opposite direction.
- ✓ROE of 19.73% has remained above 15% for 4 of the available years, and free cash flow has been positive in 4 of those years, suggesting the core operating engine has historically generated returns above cost of capital.
- ✓Revenue grew at a 5-year CAGR of 12.7%, with the most recent standalone quarter (March 2026) reporting net sales of ₹703.43 crore, up 8.29% year-on-year — top-line momentum has continued even as margins compressed.
- ✓Persistence consistency score of 83 reflects a track record of above-15% ROE and positive FCF across most measured years, indicating financial quality above what the current quality score of 32 might suggest in isolation.
- ✓Dividend yield of 1.13% has been maintained, indicating the company has continued shareholder distributions despite earnings pressure.
- ✗Profit fell 33% in Q4 FY2026 despite record revenue, and 5-year earnings growth stands at -33.5%, pointing to a structural margin compression problem that has persisted across multiple reporting periods.
- ✗The stock is 30.8% below its 200-DMA (₹728 vs ₹1,052.87) and 48.89% below its 52-week high, reflecting sustained selling pressure over an extended period rather than a short-term correction.
- ✗Debt-to-equity of 23.624 is anomalously elevated for an IT company; the composition of this debt (long-term borrowings, lease liabilities, or working capital lines) requires independent verification, as the magnitude is materially outside the norm for the sector.
- ✗Quality score of 32 ranks last (6th of 6) among its peer group, which includes HCLTECH (40), TECHM (46), WIPRO (46), INFY (60), and TCS (59) — the combined fundamental quality assessment places KPITTECH at the bottom of its competitive set.
- ·Q4 FY2026 results released in early May showed standalone net sales of ₹703.43 crore (+8.29% YoY) alongside a 33% decline in net profit, prompting a share price drop on results day and generating mixed analyst reactions on forward guidance and pipeline commentary.
- ·Co-founder Ravi Pandit passed away on 9 May 2026 at age 75; he was one of the two original founders of KPIT Technologies, and his passing marks a generational transition in the company's founding leadership.
- ·Mean analyst rating of 2.1 across 20 analysts (1–5 scale, lower = more constructive) reflects a moderately constructive aggregate view, though the gap between the forward PE implied recovery and recent earnings delivery remains a live point of debate in coverage.
- ?Does the 33% profit decline in Q4 FY2026 reflect a temporary cost absorption (e.g., hiring, R&D investment in solutions/products) or a structural deterioration in the automotive IT spending environment that KPITTECH serves?
- ?What is the composition of the debt-to-equity figure of 23.624 — specifically, how much represents lease liabilities under Ind AS 116 versus actual financial debt, and how does net-debt-to-EBITDA compare to the peer group?
- ?How dependent is KPITTECH's revenue pipeline on European and North American automotive OEM capex cycles, and what does the current state of global EV adoption and OEM restructuring imply for near-term software engineering demand?
- ?Does the forward PE of 19.94 reflect a broad analyst consensus on earnings recovery, or is the range of estimates wide enough that the forward multiple is sensitive to execution on the FY2027 guidance the management provided post-results?
PE
31.3
Forward PE
19.9
ROE
+19.7%
Profit margin
+9.7%
D/E
23.62
Dividend yield
+1.1%
Quality score
32/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.