KPIT Shares Nosedive 10% As Company Expects Q1FY27 Revenue Decline

KPIT Technologies shares tanked 10% to hit an intra-day low of Rs 604.40 apiece on Wednesday, July 1, after it projected a decline in Q1FY27 revenue as against Q1FY26.

The Pune-headquartered company expects Q1FY27 revenue to decline ~1% YoY (USD reported basis as compared ti the same period last fiscal year.

Issuing a clarification in a stock exchange filing, it noted, "The expected impact as stated on Q1FY27 revenues comprises of multiple client actions. We have also indicated the growth avenues that we foresee. Considering both these, we expect Q2FY27 revenue to be in the similar range as Q1FY27 revenue."

The Profitability Factor With KPIT Technologies

The operating profitability (EBITDA margin) and the net profit margin for Q1 FY27 would fall sequentially, proportionately higher than the revenue decline, as there is no window for cost optimisation during this short period, KPIT Tech said.

While its H1FY27 performance would turn unsatisfactory, the company maintains the view that the fundamentals of its business remain strong.

"As we had indicated in our communications earlier, there is strong traction in the Products and Solutions business, Trucks and Off-Highway sub-vertical and US, Korea and India markets," the press release said.

Also Read: Kotak Stock Zooms 1.69% After Deutsche Bank India Retail Biz Acquisition

In Passenger Vehicles, growth is also supported by new client acquisitions. In terms of technology domains, autonomous, connected, after-sales, and full vehicle design and engineering show promising traction. These growth levers are supported by a resilient order book and growing pipeline.

"We are executing specific AI-led productivity improvement and cost containment measures to establish a firm foundation for an upward margin trajectory. In order to realise the growth opportunities, we continue to invest in AI-led products and solutions," it stated.

The company further said they are confident in its ability to demonstrate sustainable, profitable growth during the second half of the fiscal year with a sound sequential quarterly growth in Q4 FY27 to lay a solid growth foundation for FY28 and beyond.