24 Jun , 2025 By : Debdeep Gupta
Shares of KPIT Technologies fell as much as 5 percent to Rs 1,319 in morning trade on June 14 after the company said it is facing a murky demand environment and slower-than-expected deal closures.
Now, KPIT Technologies is betting on its latest acquisition to steady the ship. The company has approved the 100 percent acquisition of Caresoft’s Global Engineering Solutions business, a move it hopes will drive growth and sharpen its edge in key automotive segments.
The Caresoft acquisition is expected to close by the end of the current quarter, subject to regulatory and closing conditions. Revenues from the acquired business will be consolidated starting the second quarter of FY26 and could lift KPIT’s FY26 topline by about 4 percent compared to the previous year.
Strategically, the deal bolsters KPIT’s position in the Trucks and Off-highway space, expands its manufacturing engineering solutions, and opens doors to the China market. It also allows the company to offer end-to-end vehicle cost-reduction solutions to global clients.
Meanwhile, KPIT said it expects offshoring to gain traction in the near term as part of ongoing cost optimisation efforts. However, it does not foresee any one-off gains in the June quarter, unlike Q4FY25, and flagged a potential dip in other income due to recent forex fluctuations.
While broader business conditions remain clouded by geopolitical tensions and an unpredictable global tariff regime, KPIT said a large part of its deal pipeline continues to make progress. Europe offers some cause for optimism, even as momentum in the US and Asia remains patchy.
During the fourth quarter, the company offered no revenue or margin guidance for the financial year 2026. The company's net profit went up by 31 percent from the December quarter to Rs 244.7 crore, while revenue grew by 3.4 percent from the previous quarter to Rs 1,528 crore. KPIT Tech's Earnings Before Interest and Tax saw growth of 4.4 percent to Rs 265 crore from Rs 254 crore it reported during the December quarter.
At about 9:30 am, shares of the company were trading at Rs 1,330, lower by 4.2 percent from the last close. KPIT Technologies shares have fallen over 5 percent since the beginning of the year.
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