Mumbai, Nov 10 : KPIT Technologies on Monday reported a 17 per cent year-on-year (YoY) decline in its consolidated net profit for the second quarter of this fiscal (Q2 FY26) at Rs 169.08 crore.

The company, which offers software development and integrated services for the automotive and mobility industries, had posted a net profit of Rs 203.7 crore in the corresponding quarter a year ago (Q2 FY25). Its net profit slipped over 28 per cent sequentially as well, from Rs 171.89 crore in the first quarter of FY26.

The decline in profit was largely attributed to higher expenses as the company's total expenses for the quarter under review rose over 9 per cent YoY to Rs 1,358 crore from Rs 1,235.9 crore.

Revenue from operations, however, went up to Rs 1,587.7 crore, marking around 8 per cent growth YoY from Rs 1,471.4 crore and a 3.1 per cent increase quarter-on-quarter (QoQ) from Rs 1,538.7 crore.

This increment was driven by robust demand from European markets, despite there was a slight decline in its American business.

Revenue from the UK and Europe rose 13.6 per cent sequentially to Rs 828.3 crore, offsetting a dip in the Americas, where revenue fell to Rs 442.4 crore from Rs 456.9 crore in the previous quarter.

The company's operating performance improved, with EBITDA margin expanding to 21.1 per cent and EBIT margin at 16.4 per cent during the quarter.

According to its exchange filing, the company has also secured a new total contract value of over 1,940 crore, which includes a significant multi-year partnership with a leading European automotive manufacturer to drive software-defined vehicle (SDV) transformation.

'Despite ongoing global uncertainties, we are seeing signs of renewed optimism in the mobility ecosystem. Our strategic investments, such as the Caresoft Engineering Solutions Business acquisition closure in Q2 and the stake increase in NDream coupled with the investment in helm.ai in Q3, are strengthening our foundation and expanding our capabilities," said Kishor Patil, Co-founder, CEO and MD, KPIT.

As the industry accelerates toward software-defined vehicles, KPIT's focus on next-generation technologies, AI-driven solutions, and deep client partnerships positions us to lead this transformation, he added.

/IANS