KPIT Technologies, in its regulatory filing on Tuesday, said it expects its financial performance for the June-ended quarter (Q1FY27) to be impacted due to a sudden decline in revenues over the past few weeks.
The company expects its reported USD revenue for Q1FY27 to decline by around 1% year-on-year compared with Q1FY26, primarily due to sudden actions taken by some European original equipment manufacturers (OEMs) following their recent profit warnings and weaker business outlook. KPIT said the impact of these developments was realised only in recent weeks.
As a result, the company now expects revenue to come in below its earlier guidance. It also expects EBITDA and net profit margins for Q1FY27 to decline sequentially, with the contraction likely to be proportionately higher than the revenue decline, as there was little scope for cost optimisation over such a short period.
Company remains optimistic despite weak Q1 outlook
Although KPIT is set to begin FY27 on a weaker note, the company remains optimistic about the rest of the financial year, citing strong business fundamentals and multiple growth drivers.
The company said it had earlier highlighted strong traction in its Products & Solutions business, the Trucks & Off-Highway vertical, and key markets such as the US, Korea, and India.
In the passenger vehicle segment, growth continues to be supported by new client acquisitions.
Across technology domains, autonomous driving, connected vehicles, after-sales solutions, and full-vehicle design and engineering continue to witness strong demand. The company added that these growth drivers are backed by a resilient order book and a strong deal pipeline.
AI investments and cost measures to support recovery
KPIT said it is implementing AI-led productivity improvement initiatives and cost-containment measures to establish a stronger margin trajectory. At the same time, it will continue investing in AI-led products and solutions to capitalise on long-term growth opportunities.
The company remains confident of delivering stronger profit growth during the second half of FY27, with healthy sequential revenue growth expected in the fourth quarter. It believes this will lay a solid foundation for growth in FY28 and beyond.
KPIT Tech Q4 Results 2026
In Q4FY26, the company reported a revenue of ₹1,711 crore, up 12% year-on-year (YoY) and 5.8% quarter-on-quarter (QoQ). EBIT stood at ₹240 crore, compared with ₹265 crore in the year-ago period, down 9.3% YoY but up 2.5% QoQ.
EBIT margin contracted by 329 basis points YoY and 44 basis points QoQ to 14%, impacted by higher depreciation costs and lower other income during the quarter.
Net profit declined 33.3% YoY but rose 22.2% QoQ to ₹163 crore. In constant currency (CC) terms, revenue grew 1.8% QoQ.
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