Goldman Sachs has reduced its 12-month target price for KPIT Technologies Ltd. to Rs 1,230 from earlier Rs 1,280. The brokerage expects negative other income this quarter, due to hedging losses that are likely from the sudden appreciation of currencies.
Auto R&D spending and deal closures remain subdued in the ongoing uncertain tariff environment, it further added.
An EU-US trade deal could act as a positive catalyst for auto OEMs to increase R&D spending, it said. “We do not see any major deal closure in the near term and expect KPIT’s revenue growth to be modest in first half of the year 2026, with a pickup expected in second half of the year 2026, pending some of the larger deal closure that are currently in the pipeline,” it said.
The brokerage further expects the tech company’s Q1 revenue to decline 2% in constant currency terms quarter-on-quarter, while Ebitda is expected to fall 0.3% and profit after tax to decline 12.4%.
“We cut our FY26E to FY28E EPS by up to 7% and roll forward our valuation by one quarter,” it added,
Goldman Sachs FY26 to FY28 EPS estimates are cut by up to 7% to factor in uncertainty in timing of deal closure, delay in recovery of global EV R&D spending. The brokerage presently does not include any benefit from the Caresoft acquisition which is yet to close.
