KPIT Tech Faces Q2 Revenue Decline, Warns Goldman Sachs

IT and software major KPIT Technologies is expected to face a revenue dip in its second quarter (September 2025), according to a report by Goldman Sachs. The brokerage firm maintained a ‘neutral’ rating on the stock with a target price of ₹1,100. Goldman Sachs projects a 2% sequential decline in organic constant currency revenue and a 1% drop in US dollar terms. However, the recent Caresoft acquisition is anticipated to add approximately $4 million to the revenue, keeping the overall revenue nearly flat.

The report attributes the expected decline to weak organic momentum and slower deal closures. Despite these challenges, Goldman Sachs notes that the acquisition will provide a growth boost. Meanwhile, JPMorgan has retained its ‘buy’ rating on KPIT Tech but reduced its price target, EPS estimates for FY26-28, and target multiple to 36x.

KPIT Tech’s stock has recently seen a significant decline of 9.27%, impacting its position in the Nifty 500 index as a mid-cap IT stock. Analysts suggest that while short-term challenges persist due to sluggish auto R&D spending and global economic uncertainties, KPIT Tech’s long-term potential in electric vehicles (EV) and software-defined vehicles remains strong.

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