Pune-based KPIT (KPIT Technologies), a global mobility solutions company, says the current geo-political scenario is enabling it to expand its landscape with opportunities. Speaking at the Q3FY25 virtual media meet, Kishor Patil, Co-founder, CEO and MD, KPIT, says, “We see both opportunities and challenges in the geopolitical scenario. Overall, it presents a very positive opportunity for us.”
Reflecting on US and China market, Patil says, “In the US, policies around electrification and consumer choices are driving a broader range of vehicle offerings from OEMs. As consumers demand more electrification, we will see a mix of EVs, hybrids, and alternative propulsion systems like fuel cells in commercial vehicles. Additionally, conventional powertrains will continue to become more efficient.”
Opportunities in China
Highlighting that this diversity is beneficial for KPIT as its revenue is tied to the number of programs and the variety of technologies OEMs invest in, Patil says, “The restrictions imposed by the US government on China, particularly in software, expand our opportunity landscape in the market.” KPIT is exploring new opportunities with passenger car and truck makers in China and Europe beyond Germany.
Asked about intellectual property and patent concerns in China, Patil, says, “It’s interesting that people have concerns about intellectual property in China. In reality, the world has a lot to learn from China—there is more intellectual property being generated there than in many other regions. Just look at what happened recently – DeepSeek.”
Sharing about company’s strategy in China, Patil adds, “When it comes to China, the market has traditionally been dominated by Chinese companies. The ones who have lost out are the global OEMs, many of whom have seen a decline in market share. This presents an opportunity for us to support them. While their position in China may not be as strong, we see potential. Over the past year, we have been investing in China and have received some positive responses. It may take time, but we believe we will be well-positioned to work within the Chinese ecosystem and market.”
Adding that Chinese companies have extensive experience in connected vehicles, digital cockpits, and even autonomous technologies, Patil further adds, “They have also collected more data than the rest of the world, giving them a significant edge in many areas. That said, there are still areas where they lag behind. We are selective about the domains we work in, focusing on areas where we can add value. Cybersecurity, compliance, and system integration are key areas where we can contribute. Additionally, as Chinese companies expand globally, they face software-related challenges and look to partner with companies like us to navigate these complexities. These are the opportunities we see in China.”
EU leads in new engagements in Q3FY25
KPIT during the third quarter (Q3FY25) closed new engagements worth USD236 million largely from Europe, followed by US and Asian markets. In terms of verticals, passenger cars remained the key puller followed by trucks and off-highway vehicles. “In terms of technology, we are seeing traction in demand for digital cockpits, cybersecurity, autonomous vehicles, and data-oriented services,” says, Sachin Tikekar, President and Joint MD, KPIT. Some of the new engagement sealed by the company with EU carmakers fall into domains such as autonomous driving, electric powertrain and architecture. In the US, it has been in the CV segment for vehicle diagnostics and mechatronics, and autonomous and connected domains along with joint go-to-market for an American semiconductor company.
Developing AI platform for customers
KPIT is investing in AI technologies fine-tuned with automotive-specific data. “Our AI philosophy is rooted in developing human-centric, innovative, safe, and responsible AI solutions that drive value creation for our clients. We will leverage these AI investments to augment our talent pool, while creating new opportunities for future growth. Our leadership and strength of relationship with our T25 clients is demonstrated by higher deal closures, efficient cash conversion and robust build-up in the pipeline,” says Patil.
Anup Sable, Chief Technology Officer, KPIT, adds, “From KPIT’s perspective, AI has three fundamental aspects: how we use it internally, how we integrate it into our delivery processes, and how we enable our customers to leverage it for their businesses. We are strategically investing in all three areas.”
Expressing that customers are still in the early stages of defining their AI strategies, Sable, says, “We are actively collaborating with them to explore potential applications and understand where they want to go. As AI adoption increases, its role in customer applications and business processes will continue to grow. Being a vertically focused company gives us a strong advantage, as AI thrives on domain-specific data and expertise. We are in the process of transforming our insights and capabilities into a platform that can be effectively be utilised by our customers.”
India on the Rise
Asked about India focus, Patil shares, “We have made significant investments across different parts of the world to gain deep domain knowledge. As we had previously indicated, our goal has always been to eventually transition much of this work to India.This shift not only enhances our margins but also allows us to navigate currency-related headwinds effectively. By leveraging this transition strategically, we can create long-term value.”
In India, KPIT is engaged in programs that fall into three key areas. “One major focus is new vehicle architectures, particularly Software-Defined Vehicles (SDVs). OEMs are increasingly looking to capitalise on our expertise in this space to accelerate their development efforts. Second is electrification and lastly, the advanced digital cockpit.”
In Q3 FY25, KPIT Technologies has reported an 18% year-on-year growth in dollar revenue, driven primarily by its powertrain and connected vehicle domains. The company reflects that Asian markets with the passenger car vertical were the key growth drivers. Net Profit has increased by 20.4% to Rs. 1,870 million in Q3FY25 Y-o-Y. EBITDA outlook for FY25 has been revised by the company to 21% plus from 20.5% plus earlier, during the third quarter it stood at 21.1%.
KPIT maintains its constant currency (CC) revenue growth outlook of 18% to 22% range. “Third quarter revenues align with our annual revenue projections, while the operating profit has improved due to revenue mix change and productivity improvement, despite currency headwinds.”
