1.     Company Overview

KPIT Technologies is the "Largest Independent Software and System Integration Partner to the Mobility Ecosystem". Today, Cars/Vehicles are going autonomous with self-driving features. These cars have more computer in them than ever before. Vehicle manufacturers are embedding more and more software in them to make the vehicle autonomous. -KPIT plays a big part in this automation.

KPIT positions itself as a global leader in mobility software. It's focus areas are Electric Vehicles (EVs), Autonomous Driving and ADAS, Body Electronics, Vehicle Diagnostics and Connected Vehicles. It's expertise lies in Autonomous Driving & ADAS, Body Electronics, Chassis, Cockpit, Propulsion, E/E Architecture, Network & Middleware, Cloud, Edge analytics & Data management, Vehicle Engineering & Design, Virtual Engineering, Integrated Diagnostics & Aftersales Transformation [iDART] and Validation.

Its key clients include BMW, Mercedes, Stellantis, Renault, Honda, Ford, Jaguar, General Motors, Volkswagen, Renault, Cummins, Navistar. The top end vehicle manufacturers.

It has a Global presence in Europe, USA, Japan, China, South Korea, Vietnam, Thailand, Brazil and India. The top countries where the best vehicles are manufactured.

2.     Background

In 2019, the company was demerged from Birlasoft ltd with focus on engineering and mobility solutions

3.     Sector Outlook

Currently in today's vehicles, contribution of automation continues to increase. A breakup of such costs are given below.

• Average contribution of software:
  -> 15-20% of a car's total cost (for mid-range and premium vehicles)
  -> Up to 30%+ in EVs or advanced driver assistance systems (ADAS)-enabled cars
• In premium or electric models (e.g.,Mercedes EQS, BMW iX):
  -> Software can account for up to 100 million lines of code
  -> Software + electronics = 40-50% of vehicle cost

Five years going forward, software + electronics will be 60% of the vehicle cost. KPIT technologies is expected to play a big part in this automation. Research reports suggest the total spend on software by the automotive and mobility industry would be in the range of around $46+ billion by 2030.

This is a very bright sector with compounding growth in the future.

4.     Financial Highlights:

Sharing yearly charts for the financial growth of KPIT technologies. As can be seen, the company has witnessed stupendous growth in terms of revenue, EBITDA, PAT and ROE.

Revenue: Except for one covid year, the annual revenue and PAT (profit after tax) has been on the upside. Also, EBIDTA has been on a constant uprise.

Also, the ROE has been on a constant uprise. Anything above 15% is considered good. In finance, Return on Equity (ROE) is a profitability ratio that measures how well a company uses investments to generate earnings for shareholders. There is tremendous potential in this company.

4. Stock Snapshot (As of 4 July 2025)

Share Price	₹1264
Market Cap	₹ 34,720Cr+
P/E Ratio	41.4
3-Year Median PE	67.5
3-Year Stock CAGR	~60%+
Promoter Holding	~40%
FII/DII Holding	~35%+

Valuations reflect high-growth, niche positioning in mobility software. It is currently valued less than the 3-year median PE.

Sharing the 5-year stock price chart for KPIT technologies. As can be seen, it is now in a period of consolidation for the last 6 months.. Earnings of the company will continue to drive its growth.

 

5. Growth Drivers for the company

- Expanding Global EV & ADAS adoption
- Software-defined vehicles (SDVs)
- OEM outsourcing trend in R&D
- Strong deal pipeline
- Strategic acquisitions in Europe and Japan

6. Key Risks for the company

- High dependency on select large OEM clients
- Currency fluctuation (significant USD/EUR exposure)
- Talent retention & cost inflation in engineering
- Global slowdown in auto demand or tech budgets

7. Peers & Positioning for KPIT technologies in India

 

Company	Focus Areas	Remarks
Tata Elxsi	Auto + Media & Healthcare	It is diversified with other focus areas besides auto
L&T Tech	Broader ER&D services	Lower auto focus
Bosch India	Automotive hardware + SW	Captive business
KPIT Tech	100% Auto SW + IP-led	Pure-play EV/ADAS exposure

KPIT is among the few listed pure-plays on the global auto-tech transition. Globally, the direct competitors to KPIT technologies are TTTech Auto (Austria), Elektrobit (EB) (Germany), Vector Informatik (Germany), ETAS GmbH (Germany), AVL List GmbH (Austria).

8. ESG & Sustainability

- Low-carbon operations (software-heavy, minimal manufacturing)
- Gender diversity and global workforce
- R&D towards sustainable mobility solutions
- CSR (Corporate Social Responsibility) in education and tech skilling

9. Disclaimer

This report is for educational purposes only and is not investment advice. Please consult a SEBI-registered investment adviser before making any financial decisions.

Summary Snapshot

Business Strength	High Niche, high-demand global segment
Financial Health	Strong margins, growing free cash flow
Scalability	High OEM demand and tech tailwinds
Risk Factors	Client concentration, global slowdown
Suitable For	Long-term learners of tech-driven investing

 

There is automation, AI everywhere in the world and growing at a rapid pace. KPIT technologies sets to benefit from the same.