KPIT Tech Flags Slower Ramp-Up, Sees Soft January-March As Deal Conversions Lag

KPIT Technologies Ltd. on Monday flagged slower-than-expected ramp-ups in recent client wins and a soft business environment due to rising geopolitical concerns and tariff-related ambiguity. In a quarterly update, the company said conversions from its deal pipeline are lagging, even as the pipeline itself remains strong and "moving in a positive direction."

“Europe is looking positive, while the US and Asia remain uncertain,” KPIT said in a stock exchange filing. The company added that client budgets are being directed to immediate priority areas, leading to partial cannibalisation of its own revenues.

The Pune-based technology firm also said the recent acquisition of US-based Caresoft Global Technologies Inc. and three of its group entities is expected to close by the end of the June quarter, with revenues to be consolidated from the September quarter. The acquisition is expected to contribute around 4% to revenue growth in 2025-26 and bolster its presence in the trucks and off-highway segment as well as the China market.

KPIT expects to benefit from increased offshoring in the near term as clients seek to optimise costs. However, it warned that the June quarter performance will lack the one-time gains that had boosted profit in the March quarter and may also see lower other income due to foreign exchange volatility.