KPIT Technologies Expects Caresoft Acquisition Closure by Quarter End

KPIT Technologies Limited announced in its mid-quarter update for June 2025 that it expects to close its acquisition of Caresoft's Global Engineering Solutions Business by the end of the current quarter, with revenues from the acquired business to be consolidated beginning Q2FY26. The Pune-based technology company's board approved the 100% acquisition in May 2025, and the deal is currently pending satisfaction of certain closing conditions by both parties.

The acquisition is projected to contribute approximately 4% growth in FY26 over FY25 once consolidated. KPIT stated that the Caresoft acquisition will augment the company's growth in the trucks and off-highway segment, boost value creation for clients with full vehicle cost reduction solutions, enhance its manufacturing engineering solutions portfolio, and accelerate its foray into the China market.

The company reported that while its business pipeline remains strong, conversions are proceeding slower than expected. KPIT noted that substantial pipeline movement is progressing in a positive direction, with Europe showing positive trends while the USA and Asia markets remain uncertain. The company has secured early wins in the trucks and off-highway segments, though these are described as small but important.

Ramp-ups for recent wins are progressing at a slower pace than anticipated at the end of the previous quarter. In some instances where new wins have occurred, KPIT is experiencing partial cannibalization of its own revenues due to limited client budgets being allocated to immediate priority areas.

The company highlighted challenging market conditions, citing an uncertain business environment with rising geopolitical concerns and ambiguity around tariff scenarios. Looking ahead, KPIT expects offshoring to grow further as clients seek to lower overall costs.

KPIT indicated it does not anticipate any one-time gains in Q1FY26 similar to those recorded in Q4FY25, and expects additional deficits in other income due to sudden movements in foreign exchange rates.

The mid-quarter update was filed with BSE Limited and the National Stock Exchange of India Limited on June 23, 2025.