Buy KPIT; target of Rs 1500: Motilal Oswal

Motilal Oswal's research report on KPIT

KPIT Technologies (KPIT) reported revenue of USD181m in 2QFY26, up 0.3% QoQ in CC terms vs. our estimate of flat growth. Growth was led by the commercial vehicles segment, up 19.3% QoQ, while the passenger car segment declined 1.3% QoQ. EBIT margin was 16.4% (down 60bp QoQ), below our estimate of 17.0%. PAT was down 1.6%/17.0% QoQ /YoY to INR1,691m (below our est. of INR2,051m).

Outlook

With an expected EPS CAGR of 14% over FY25–28, outpacing most peers in the ER&D space and continued leadership in the automotive software vertical, we reiterate our BUY rating with a TP of INR 1,500 (26% upside), valuing the stock at 38x Jun’27E EPS.