KPIT Technologies share price slumps 5% after THIS update. Do you own?

KPIT Technologies share price fell over 5 per cent in Tuesday's trading session to ₹1,315.40 apiece on NSE, following the company's indication of a sluggish demand environment and delays in finalizing deals.

KPIT Technologies stock opened nearly 4 per cent down at ₹1,359.30 on June 24, as compared to previous close of ₹1,390 per share.

KPIT Technologies acquires Caresoft's Global Engineering Solutions division

The company said that its board has approved the full acquisition of Caresoft’s Global Engineering Solutions division. However, the completion of the deal is contingent upon certain closing conditions that both parties are currently addressing. KPIT anticipates finalizing the transaction by the end of the ongoing quarter, unless unexpected delays occur.

Caresoft’s business revenues are anticipated to be included in KPIT’s consolidated financials from the second quarter of FY26 and are projected to contribute around 4% growth to KPIT’s total revenue in FY26 compared to FY25.

Caresoft acquistion will aim at -Strengthen KPIT's presence in the Trucks and Off-highway segment, Enhance value creation for clients through full vehicle cost-reduction solutions, Expand KPIT's manufacturing engineering solutions portfolio and Accelerate KPIT's entry into the China market.

KPIT Technologies noted that the broader business environment continues to be uncertain, mainly due to escalating geopolitical tensions and unclear global tariff policies.

Although the company’s deal pipeline remains healthy, deal closures are taking longer than anticipated. Still, a significant portion of these opportunities is advancing well. Among regions, Europe is performing relatively better, whereas the outlook in the USA and Asia is less certain. KPIT has also recorded a few initial, though modest yet strategically important, wins in the Trucks and Off-highway sectors.

The company anticipates a further rise in offshoring activities as part of its strategy to optimize costs.

Furthermore, KPIT said that it does not foresee any one-off gains in the first quarter of FY26, similar to those recorded in Q4FY25. It also cautioned that other income may dip due to recent forex rate volatility.

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