Updated 24 June 2025 at 15:32 IST
Shares of KPIT Technologies witnessed a sharp decline of over 6% on Monday, June 24, after the automotive software firm’s mid-quarter business update raised concerns over revenue growth and client spending delays.
KPIT Technologies Share Price Today
The stock opened at Rs 1,366.60 on the NSE and touched a low of Rs 1,305.00. As of 3:07 pm, it was trading at Rs 1,307.00 — down 83.30 or 5.99%.
On the BSE, the stock opened higher at Rs 1,381.00 but fell to a low of Rs 1,304.35, trading at Rs 1,307.00 at 3:08 pm — marking a decline of 83.80 or 6.03%.
Why is the stock falling?
In its June 2025 update, KPIT Technologies noted that although the business pipeline remains strong, the conversion of deals is taking longer than expected. The company cited rising geopolitical concerns and tariff-related uncertainties as the primary headwinds affecting the overall client environment.
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The company further revealed that ramp-ups from recent client wins are progressing at an even slower pace than anticipated, adding to near-term revenue pressure. Additionally, KPIT highlighted revenue cannibalization in certain new deals due to clients reallocating limited budgets to higher-priority areas.
Geographic and Sectoral Insights:
While the European market outlook remains positive, the company flagged uncertainty in the US and Asia markets. Some early-stage wins have been recorded in the trucks and off-highway segment, though management clarified these are currently small in scale.
KPIT Technologies Acquisition Update
On the M&A front, KPIT’s board had approved the 100% acquisition of Caresoft’s Global Engineering Solutions Business in May 2025. The company expects the deal to close by the end of Q1FY26, with revenue consolidation beginning in the following quarter. The acquisition is projected to contribute approximately 4% revenue growth in FY26 over FY25.
KPIT has ruled out any one-time gains in the current quarter (Q1FY26), unlike Q4FY25, and has also cautioned about potential deficits in other income stemming from unexpected foreign exchange fluctuations.
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Published 24 June 2025 at 15:32 IST