KPIT Technologies has received buy ratings from both Prabhudas Lilladher and Motilal Oswal with significantly different target prices. Prabhudas Lilladher has issued a buy rating with target price of ₹880 in its research report dated May 08, 2026, while Motilal Oswal has recommended a buy rating with target price of ₹970 in its report dated May 07, 2026. According to Prabhudas Lilladher's analysis, the recommendation is based on the company's medium-term growth strategy and management's confidence in demand revival, despite near-term challenges in the automotive and AI sectors. Motilal Oswal's bullish stance reflects confidence in KPIT's positioning as one of the better-positioned ER&D plays within automotive software.
KPIT's Q4FY26 performance of 1.8% QoQ CC growth came slightly ahead of Prabhudas Lilladher's estimate of 1.5%, with the company reporting revenue of USD 185 million. Growth was primarily led by the commercial vehicles segment, which increased 11.6% QoQ, while the passenger car segment declined 0.2% QoQ. However, EBIT margin was 15.9% (up 25bp QoQ), largely in line with Prabhudas Lilladher's estimate of 16%, though adjusted PAT declined 9.6% QoQ and 18.4% YoY to ₹1,630 million, falling below the brokerage's estimate of ₹2,165 million. The performance reflected broader challenges in the automotive technology sector during the fiscal year.
Management outlined a medium-term growth strategy focusing on pivoting toward a solutions and products-led model, with aspiration to deliver sustainable double-digit growth from FY28 onwards. The company also reiterated its target of EBITDA margin expansion to 22–24% by 2029, though near-term margins are expected to remain in the 20.5–21.2% range. This strategic shift represents KPIT's response to evolving market demands and technological trends in the automotive and AI sectors. Motilal Oswal's continued preference for KPIT as their preferred pick in the automotive software space reinforces this strategic positioning.
Prabhudas Lilladher has revised its CC revenue growth estimates to 4.0% and 10.0% for FY27E and FY28E respectively, down from earlier estimates of 6.4% and 11.0%. The brokerage has also lowered its EBITDA margin estimates to 20.8% and 21.2% from 21.2% and 21.5% respectively, factoring in sustained investments in technology and R&D. Management acknowledged near-term volatility from delayed OEM programs and completion of two large SDV programs, which are likely to weigh on near-term growth. Motilal Oswal's revised target price of ₹970 is based on 25x FY28E EPS, reflecting confidence in the company's strategic positioning despite the challenging near-term environment.
Prabhudas Lilladher has assigned a P/E multiple of 26x to FY28E EPS to arrive at the revised target price of ₹880, down from the earlier target of ₹1,020. The brokerage maintains its buy rating despite the downward revision in target price, reflecting confidence in the company's long-term strategic positioning and growth prospects. Motilal Oswal's target price of ₹970 is based on 25x FY28E EPS, representing a higher valuation multiple that reflects their bullish stance on KPIT's market positioning within the automotive software sector. Both brokerages maintain buy ratings despite different target prices, indicating broad market confidence in KPIT's strategic pivot and long-term growth potential.
