KPIT Technologies Limited is an Indian multinational corporation specializing in embedded software and product engineering solutions for the automotive and mobility sectors. Headquartered in Pune, Maharashtra, KPIT has a global presence with development centers in Europe, the USA, Japan, China, and India. The company was co-founded in 1990 by Ravi Pandit and Kishor Patil, both chartered accountants by profession.
Historical Background
Initially established as KPIT Infosystems, the company made its initial public offering (IPO) in 1999, which was 50 times oversubscribed. In 2002, KPIT merged with Cummins Infotech, the IT arm of Cummins, leading to the formation of KPIT Cummins Infosystems Ltd. In September 2013, reflecting Cummins’ decision to focus on its core business, the company was renamed KPIT Technologies Limited.
In January 2018, KPIT announced a merger with Birlasoft, followed by a demerger to create two separate entities: an IT company under the Birlasoft name and an automotive-focused company retaining the KPIT Technologies name. This strategic move aimed to provide sharper focus on each business segment. The demerger was completed, and KPIT Technologies was listed on the BSE and NSE on April 22, 2019.
Services and Expertise
KPIT offers a comprehensive range of services tailored to the automotive industry, including:
Autonomous Driving and Advanced Driver Assistance Systems (ADAS): System engineering, functional safety, platform and software integration, and AI-based perception and planning.
Electrification: Charging platforms, battery management systems, and vehicle control units.
Connected Vehicles: Cloud integration, edge analytics, and data management.
Vehicle Engineering and Design: E/E architecture development, middleware integration, and validation services.
These services position KPIT as a strategic partner for automotive manufacturers transitioning toward electric and autonomous mobility.
Financial Performance
In the quarter ending September 2024 (Q2 FY25), KPIT reported a consolidated net profit of ₹203.7 crore, marking a 44% increase from ₹141.4 crore in the same period the previous year. Revenue for this quarter stood at ₹1,471.4 crore, up 22.71% from ₹1,199 crore in Q2 FY24.
The company’s strong performance was primarily driven by advancements in the Middleware and Powertrain domains, which are crucial for the development of modern, software-defined vehicles. Additionally, growth was bolstered by significant demand in the Asia region and the Passenger Car vertical.
In the quarter ending March 2024, KPIT’s net profit surged by 52% year-on-year to ₹204.2 crore, propelled by higher revenue and improved profit margins. Revenue from operations during this period increased by 24% to ₹1,364.6 crore, compared to ₹1,097.6 crore in the same quarter the previous year.
Strategic Outlook
KPIT continues to prioritize investments in technology and markets ahead of demand to help its top 25 clients stay on the cutting edge of technology and competitiveness. The company has taken an enabling board resolution for fundraising in view of some strategic opportunities on the horizon, with actual fundraising to occur as these prospects advance.
Innovations and Collaborations
KPIT has been at the forefront of innovation in the mobility sector. In December 2023, the company unveiled its sodium-ion battery technology, developed in collaboration with the Indian Institute of Science Education and Research (IISER), Pune. This technology aims to reduce dependency on imported battery materials and has applications in electric two-wheelers, three-wheelers, commercial vehicles, and stationary deployments like UPS backups and grid storage. KPIT is seeking partnerships to commercialize this technology globally.
Global Presence and Workforce
With over 12,700 employees as of December 2023, KPIT operates in more than 50 offices across 20 countries. The company’s global footprint enables it to serve a diverse clientele and stay abreast of regional automotive trends.
Strategic Vision
KPIT envisions accelerating the mobility industry’s transition to a smart, safe, and clean future. By focusing on software-defined vehicles and leveraging expertise in embedded software, digital solutions, and artificial intelligence, KPIT aims to be a leading independent software development and integration partner in the automotive sector
KPIT Technologies Business Model
KPIT Technologies operates as a specialized software and product engineering company focused on the automotive and mobility sectors. Its business model revolves around providing embedded software solutions, digital engineering, and AI-driven technologies to global automotive OEMs (original equipment manufacturers) and Tier-1 suppliers.
1.Business Segments
KPIT is structured into multiple business verticals, all centered around software-defined vehicles (SDVs):
A. Autonomous Driving & ADAS (Advanced Driver Assistance Systems)
Development of AI-powered perception, planning, and control systems.
Sensor fusion, LiDAR, radar, and camera-based automation.
Compliance with global safety standards (ISO 26262, ASPICE, etc.).
B. Electric & Hybrid Vehicles (Electrification Solutions)
Battery Management Systems (BMS) for electric and hybrid vehicles.
Powertrain software for efficient energy management.
Charging infrastructure integration and smart grid solutions.
C. Connected Vehicles & Cloud Solutions
Over-the-air (OTA) software updates for smart cars.
Vehicle-to-vehicle (V2V) and vehicle-to-everything (V2X) communication.
Data analytics, cybersecurity, and cloud integration.
D. Vehicle Engineering & Middleware Development
Embedded software for Electronic Control Units (ECUs).
Software integration for infotainment and in-vehicle networks.
Digital cockpit solutions and user experience (UX) enhancement.
2.Revenue Model
KPIT follows a B2B (Business-to-Business) revenue model, working closely with automotive giants like BMW, Mercedes-Benz, Renault, Stellantis, and Honda. The revenue streams include:
A. Engineering Services Contracts
Time & Material (T&M) contracts where clients pay based on engineer-hours spent on projects.
Fixed-price projects for long-term engagements in software development and integration.
B. Licensing & Intellectual Property (IP)-based Revenue
Proprietary software modules and middleware are licensed to OEMs.
Partnerships for co-developing AI-driven mobility solutions.
C. Long-term Strategic Partnerships
Multi-year agreements with automakers for advanced mobility solutions.
Joint ventures and co-innovation centers for new automotive tech.
3.Global Delivery Model
KPIT operates a Global Delivery Model (GDM) with development centers across the world, allowing for cost-effective solutions while staying close to its key clients.
R&D Centers: India (Pune, Bangalore), Germany, USA, Japan, China.
Client Proximity Centers: On-site teams working directly with customers for faster execution.
Nearshore Centers: Located in Europe and North America to optimize service delivery.
- Key Differentiators
- 100% Focus on Automotive & Mobility – Unlike traditional IT companies, KPIT specializes in software-driven vehicle transformation.
- Deep Domain Expertise – Strong engineering and AI-based solutions tailored for auto OEMs.
- IP-led Business Model – Proprietary software and platforms add recurring revenue streams.
- Sustainability & Green Mobility – Focus on EVs, carbon neutrality, and energy efficiency.
- Strategic Mergers & Acquisitions – Growth through targeted acquisitions in niche mobility tech.
Conclusion
KPIT Technologies has successfully positioned itself as a leading independent software integrator for the automotive industry. With the rise of electric, autonomous, and connected vehicles, KPIT is set to play a key role in shaping the future of mobility.