KPIT Technologies Ltd.Record $349M Deal Wins, SDV Ramp-Downs Cloud H1 FY27

KPIT Technologies delivered a muted FY26 on the revenue line — 12% YoY INR growth, 1.8% constant-currency QoQ in Q4 — but management characterized it as one of the best years qualitatively, marked by AI leadership expansion, product portfolio growth, and market diversification.

The company achieved record deal closures of $349 million in Q4, signaling strong future revenue visibility. Two headwinds define FY27: one large SDV program completing its ramp-down into production (planned), and Honda's surprise cancellation of all new platform programs in April (unplanned). Together these create a 4-5% sequential growth opportunity headwind concentrated in H1 FY27, expected to be largely compensated by newly acquired accounts.

Management guided FY27 EBITDA at 20.5-21.2%, post R&D and AI investments exceeding 5% of revenue — versus an industry average below 1% — while maintaining best-in-class margins. Solutions and products revenue is targeted at 30% YoY growth in FY27. European OEM cost rationalization is creating opportunity as clients shift toward India-based engineering partners. Medium-term targets: 50% revenue from solutions and products, 22-24% EBITDA margin.