21x returns in 5 years: Automotive and mobility software firm receives an order worth 2,125 crores in Q1FY26

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ABOUT THE COMPANY

KPIT Technologies Limited is an automotive and mobility software firm. The company has market cap of ₹32,200 crore. Company secured an order worth 2,125 crore in Q1FY26, 1,825 crores in Q2FY25 and 2,081 crores in Q3FY25, the total order book of the company stands at 8,819 crores in Q1FY26. The company customer portfolio includes multiple large Original Equipment Manufacturers (OEMs) such as: BMW, General Motors (GM), FCA (Fiat Chrysler Automobiles), Honda, Jaguar, Hyundai, Ford, Navistar and many more. Talking about the returns of the company if 1,00,000 invested in March 2020 would become 29,75,000 in August 2025. This consistent rise shows that the company has been securing more business every year and has a robust pipeline of future work.

Analysis of the Financial Statements

Revenue Growth Trend

Revenue moved from 2,156 crores in 2020 to 5,842 crores in 2025 with a 6-year CAGR for revenues stands at 22.05%, outperforming the industry growth rate of 10-12%. It indicates that the annual growth is steady and consistent.

MARCH
2020  		MARCH
2021		MARCH
2022		MARCH
2023		MARCH
2024		MARCH
2025
2,156 CRORES  2,036 CRORES2,432 CRORES3,365 CRORES4,872 CRORES5,842 CRORES

Profitability & Margin Analysis

Operating Profit has shown an expansion in the past few years from 13% in 2021 to 21% in 2025. It indicates that the company is becoming more efficient in converting sales into operating profits. It’s steadily increasing order book and rise in the OPM (Operating Profit Margin) indicates that the future operating profits will show a sharp rise.  

MARCH
2020  		MARCH
2021		MARCH
2022		MARCH
2023		MARCH
2024		MARCH
2025
13%15%19%19%20%21%

Balance Sheet Strength

The total assets of the company have grown from 1,637 crores in March 2020 to 5,033 crores in March 2025 showing a subsequent capital investment. Company’s rising sales combined with the capital investment supports the company ability to scale operations, deliver complex projects, and innovate, especially in emerging areas like AI and software-defined vehicles.

Debt Profile

Borrowings of the company increased from 204 crores in 2020 to 345 crores in 2025 showing a moderate increase in respect to the total assets of the company. Debt to equity ratio hovers 0.12 (FY24-25). Reserves showed a sharp increase, indicating a large portion of the assets are financed through retained earnings and not through debt. This makes the balance sheet healthier than if it was purely debt-driven.

Cash Flow Health

Operating cash flow of the company has been positive for the past several years, indicating company is able to convert its profit into cash. Cash Conversion Cycle of the company has gone from 76 days to 47 days showing an efficient cash conversion by the company.

Analysis of the Company Management (Concall/Disclosures-based view)

Recent conference calls highlighted:

  • Management is focused on keeping the EBITDA > 21%
  • Expansion plans in the global market
  • Low leverage, strong cash generation, and steady reserves growth provide flexibility for M&A and R&D while returning cash via dividends.

Disclaimer: The article is for informational purposes only and not investment advice. 

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