KPIT Technologies Limited Q2 FY26 Concall Decoded: – $65 million vanished, margins refused to panic, and growth promised “next quarter, pakka”

1. Opening Hook

KPIT walked into Q2 FY26 carrying two bags: one labelled deal wins, the other labelled revenue disappeared mysteriously. While peers blamed macro, KPIT blamed… itself. Yes, management openly admitted they cannibalised their own revenue. Bold. Confident. Slightly terrifying.

Growth looked sleepy, margins stayed awake, and investors were politely told to wait till Q4 for the real party. The company insists it’s not losing relevance—it’s just upgrading the engine mid-race. Old programs were sacrificed, holistic AI solutions were deployed, and revenue took a temporary hit for “future greatness.”

If you like clean numbers, this call was uncomfortable. If you like long-term chess moves and management that explains the mess in detail, keep reading. It gets interesting, confusing, and oddly reassuring later.

2. At a Glance

• Dollar revenue up 4.4% YoY – Growth technically happened, enthusiasm stayed muted.
• Organic CC growth -2.3% – Old programs quietly walked out.
• EBITDA margin 21.1% – Margins didn’t get the slowdown memo.
• $65 mn revenue impact – $45 mn client cuts, $20 mn self-inflicted genius.
• Net headcount +300 – Fired 500, hired 800, balance restored.
• Net cash ₹10.5 bn – Cash still king, even in slow quarters.

3. Management’s Key Commentary

“There has been a $65 million reduction in revenue.”
(Rare honesty unlocked; investors clutch calculators 😏)

“$45 million was due to customers deprioritising spend.”
(Macro said no, CFO said okay.)

“$20 million was cannibalised due to holistic AI-led solutions.”
(We killed our own revenue… for character development.)

“Solution revenues now form 18% of total revenue.”
(From coder-for-hire to tech-with-attitude.)

“We will maintain 21% EBITDA margin for the full year.”
(Margins clearly eating protein.)

“Q3 will be flattish to positive; Q4 will see meaningful growth.”
(Classic IT services prophecy.)

4. Numbers Decoded