KPIT Technologies is currently working toward meeting these requirements and expects to close the deal by the end of the current quarter, barring any unforeseen circumstances, the company said in an exchange filing.
Accordingly, the company expects to consolidate the revenues of the acquired business beginning Q2FY26. This consolidation is estimated to contribute approximately 4% revenue growth in FY26 over FY25.
The Caresoft acquisition will:
– Strengthen KPIT’s presence in the Trucks and Off-highway segment
– Enhance value creation for clients through full vehicle cost-reduction solutions
– Expand KPIT’s manufacturing engineering solutions portfolio
– Accelerate KPIT’s entry into the China market
KPIT Technologies also said that the overall business environment remains uncertain due to rising geopolitical tensions and ambiguity around global tariff structures.
While the deal pipeline remains strong, conversion rates are slower than expected. However, the company said a substantial portion of the pipeline is progressing positively. Region-wise, Europe is showing promise, while the USA and Asia remain somewhat uncertain. KPIT has reported some early, albeit small but strategic, wins in the Trucks and Off-highway segment.
Looking ahead, the company expects offshoring to increase further as part of its efforts to reduce overall costs.
It also clarified that it does not expect any one-time gains in Q1FY26, as seen in Q4FY25. Additionally, there may be a decline in other income due to recent fluctuations in forex rates, the company added.
Brokerage firm Kotak Institutional Equities has a ‘Sell’ rating on KPIT Technologie, with a price target of ₹1,000.
The brokerage has trimmed its FY2026-28 earnings estimates by 3-4%.
Shares of KPIT Technologies Ltd. declined 5.3% to ₹1,319.3 apiece on on Tuesday, June 24. The stock has declined 10.5%, this year, so far.
First Published: Jun 24, 2025 7:34 AM IST
