New Delhi, Nov. 12 -- Midcap IT company KPIT Technologies, which has carved a niche in automotive software services, is set to bear the brunt of planned cuts in IT investments by automobile OEM clients. The company reported a revenue impact of around $65 million recently, of which $45 million stemmed from clients deprioritizing older programmes across the US, Asia, and parts of Europe, it said in its September quarter (Q2FY26) call.

KPIT expects to cushion the blow through strong order wins-including a large three-year deal from a European automaker-and expansion in the commercial vehicle segment via its Caresoft acquisition.

But this may be easier said than done as the challenges in the global auto industry make clients skeptical of di...