KPIT Technologies Shares Tank 5% On Warnings Over Uncertain Macro Conditions, Slower Deal Wins

Shares of KPIT Technologies tanked 5% on June 24 as investors dumped the stock amid the management’s warning over slower deal wins on the heels of uncertain global conditions.

The management has acknowledged that the overall business landscape continues to be clouded by uncertainty, driven by escalating geopolitical tensions and a lack of clarity around global tariff regimes.

Even though the company boasts a healthy deal pipeline currently, the management cautioned that deal conversions were now taking longer than anticipated. That said, a significant portion of this pipeline is moving forward in a positive direction, the management said.

Meanwhile, from a regional market viewpoint, Europe appears encouraging, whereas the outlook for the US and Asia remains somewhat uncertain, KPIT Tech said.

The company has also secured a few early, albeit modest, but strategically important wins in the Trucks and Off-highway segment. Looking ahead, the company expects a further increase in offshoring activities as part of its broader strategy to bring down overall costs.

KPIT also clarified that it does not anticipate any one-off gains in the first quarter of FY26, similar to those recorded in Q4FY25. Furthermore, the company cautioned that other income may soften due to recent volatility in foreign exchange rates.

Among other things, the company’s board has also given a greenlight to the acquisition of Caresoft’s Global Engineering Solutions business, with the transaction expected to close by the end of the current quarter, subject to the fulfilment of certain closing conditions by both parties.

In an exchange filing, KPIT stated it is actively working to meet these requirements and, barring any unforeseen delays, aims to finalise the deal within the stipulated timeline.

The company plans to begin consolidating the acquired business’s revenues from Q2FY26, which is expected to contribute around 4% revenue growth in FY26 over FY25. This strategic acquisition will not only strengthen KPIT’s presence in the Trucks and Off-highway segment but also enhance client value through full vehicle cost-reduction solutions and expand its portfolio of manufacturing engineering services, the company said.