mergers & acquisitions new orders strategic partnerships
KPIT Board approved the 100% acquisition of Caresoft’s Global Engineering Solutions Business on May 6, 2025.
The deal is expected to close by the end of the current quarter, subject to certain closing conditions.
Revenue consolidation from the acquired business is expected to begin in Q2FY26 and contribute approximately 4% growth in FY26 over FY25.
The Caresoft acquisition will augment KPIT’s growth in the Trucks and Off-highway segment, boost value creation, enhance manufacturing engineering solutions, and accelerate entry into the China Market.
The overall business environment remains uncertain due to geopolitical concerns and tariff ambiguity.
KPIT's pipeline remains strong, but conversions are slower than expected. Europe shows positivity, while the USA and Asia are more uncertain.
Ramp-ups for new wins are progressing slower than anticipated.
Some new wins are cannibalizing existing revenues due to budget limitations.
KPIT expects offshoring to grow to lower overall costs.
No one-time gains are expected in Q1FY26, and there will be deficits in other income due to forex rate movements.