SoftBank Group's profit fell by 18% in the first quarter due to the increase in the value of its stake in Intel

August 6, 21:29

Net income for the period from April to June amounted to 347.3 billion yen. For the quarter, SoftBank recorded an investment gain of 1.86 trillion yen, with its stake in Intel contributing the most. Intel is managed by Son's ally Lipon-Bu Tan, and SoftBank invested in the company last year during its restructuring. Additionally, SoftBank profited from its stake in ByteDance, the parent company of TikTok.

SoftBank's financial position is closely linked to OpenAI, which is preparing for an Initial Public Offering (IPO). SoftBank's investment in OpenAI is expected to reach $64.6 billion by October, securing about a 13 percent stake. The total investment gain amounts to $45 billion.

business-standard.comJuly 29, 16:10

KPIT's profit fell by 32% in the first quarter, while revenue grew by 9% amid challenges in the automotive sector

KPIT Technologies, a company specializing in engineering research and development for the automotive industry, reported a decline in net profit in the first quarter of the fiscal year 2926-27 (Q1FY27). The profit amounted to 116.4 crore rupees, significantly less than the 171.89 crore rupees recorded in the same quarter of FY26. Quarter-on-quarter (Q-o-Q) profit for the company dropped by 28.5 percent.

Revenue and Market Dynamics

Revenue for Q1FY27 reached 1,675 crore rupees, demonstrating an 8.8 percent year-on-year (Y-o-Y) growth. However, compared to the previous quarter (Q-o-Q), revenue decreased by 2 percent. Furthermore, revenue adjusted for constant currency increased by 0.1 percent.

Despite the slowdown in revenue growth, the company's shares rose by 10 percent during the day on Wednesday, as the revenue drop was less significant than previously forecasted by management in the month. By the end of the trading day, the stock price increased by 6 percent, reaching 638.6 rupees per share.

Challenges in the Automotive Segment

KPIT's performance reflects difficulties and pressure within the automotive sector. Company management acknowledged that the pressure is particularly felt in Europe, where Chinese car manufacturers are exerting strong competition.

The total contract value (TCV) of new agreements signed in Q1FY27 was $257 million. This amount is substantially lower than the $349 million recorded in the previous quarter, which ended on March 31, 2026.

Management Comments on Strategy

Kishor Patil, Co-founder, Managing Director, and CEO of KPIT, noted that the Q1FY27 results were slightly better than the expectations set at the end of the quarter. He emphasized that although some of the largest clients continue to face difficulties, the strategy of diversifying growth across customers, geographies, mobility segments, and offerings is beginning to show resilience.

Patil added that Artificial Intelligence (AI)-based products and solutions have become a common element of the company's portfolio. He reported positive momentum in areas related to mobility, defined AI, vehicle design, digital cockpit, autonomous technologies, and after-sales service. In his view, focused investments, unique opportunities, and trusting relationships with clients enable the company to prepare for stronger growth in the second half (H2) of FY27 and beyond.

Prospects and Competency Development

The company's EBITDA for Q1FY27 was 17.2 percent, with the margin suffering due to revenue contraction. However, it is expected that profitability will grow consistently in each subsequent quarter due to the change in revenue structure, growth, and efficiency improvement through AI. Sachin Tikekar, President and Joint Managing Director of KPIT, stated the expansion of presence in high-growth client accounts, acceleration of pace in truck and SUV segments, establishment of ties with new passenger car manufacturers, strengthening leadership in AI-defined vehicles, and the integration of AI-based products and solutions into all offerings and customer interactions. Simultaneously, the company continues to deepen its competencies in vehicle design, powertrains, diagnostics, cybersecurity, and after-sales software.