KPIT net down 21.1% OEMs cut engineering, R&D spending
KPIT Technologies reported a 21.2% sequential decline in net profit to ₹133.30 crore for the December quarter. The company attributed this decline to a one-time expense related to the new labour code and wage hikes implemented during the quarter. The new wage code negatively impacted profitability by ₹59.71 crore.
However, KPIT’s revenue grew by 1.9% quarter-on-quarter to ₹1,617 crore, revenue in constant currency remaining flat at $181 million. The EBITDA margin for Q3 FY26 was 20.6% after absorbing partial wage increases during the quarter, compared to 21.1% in the previous quarter. Further wage hikes are expected in Q4 FY26.
