KPIT Tech Share Price Drops 5% Amid Uncertainty and Slower Deal Conversions

Market Performance

On Tuesday, June 24, KPIT Technologies Ltd. witnessed a sharp decline in its share price.

• The stock fell 5.3% to ₹1,319.3 per share on the NSE.
• It has registered a 10.5% fall year-to-date.

The decline occurred amid growing concerns about business momentum and macroeconomic headwinds that were impacting deal conversions.

Main News: Caresoft Acquisition & Market Sentiment

KPIT Technologies has announced the 100% acquisition of Caresoft's Global Engineering Solutions business.

While the deal is expected to close by the end of the current quarter, certain closing conditions are still pending from both companies. KPIT will begin consolidating the newly acquired revenue starting in Q2 FY26.

Key strategic benefits of the acquisition include:

• Stronger foothold in the Trucks and Off-Highway segment
• Enhanced full vehicle cost-reduction capabilities
• Broader manufacturing engineering solutions offerings
• Accelerated entry into the China market

However, KPIT acknowledged that the global business environment remains uncertain, influenced by:

• Geopolitical tensions
• Ambiguity in global tariff structures

Despite a strong deal pipeline, the conversion rate has slowed.

• Europe shows encouraging momentum
• USA and Asia present mixed signals

Some early strategic wins have been reported in the Trucks and Off-Highway segment.

Company Details & Financial Indicators

Revenue Outlook

• The revenue from the acquired Caresoft business is expected to contribute ~4% growth in FY26 compared to FY25.

Forex Impact and Other Income

• No one-time gains are expected in Q1FY26, unlike Q4FY25.
• A decline in other income may occur due to recent fluctuations in foreign exchange rates.

Cost Optimization

• KPIT plans to increase offshoring efforts to manage and reduce operational costs more efficiently.

Summary of the Article

The KPIT Tech share price experienced a notable 5.3% dip amid concerns over slower deal conversions, macroeconomic uncertainties, and fluctuations in forex-related income.

Although the Caresoft acquisition is positioned to enhance KPIT's offerings and geographic presence, near-term headwinds have contributed to a cautious market sentiment.

With the stock down 10.5% in 2025, KPIT continues to navigate a complex global landscape while working to leverage long-term strategic opportunities.