KPIT Technologies clarifies on H1 FY27 revenue outlook as stock slumps to 52-week low
Global brokerage JPMorgan downgraded KPIT Technologies to 'Underweight' from its earlier rating and cut the target price to Rs 550 from Rs 700, following the company's revised business outlook.
- Jul 1, 2026,
- Updated Jul 1, 2026 10:18 AM IST
Shares of KPIT Technologies Ltd plunged to a fresh 52-week low on Wednesday after the automotive software company clarified on its revenue guidance for the first half of the ongoing financial year 2026-27 (FY27).
The stock tumbled 16.73 per cent to hit a one-year low of Rs 559.10. At this level, the counter has declined around 52 per cent on a year-to-date (YTD) basis.
In its clarification, KPIT said, "The expected impact as stated on Q1 FY27 revenues comprises of multiple client actions. We have also indicated the growth avenues that we foresee. Considering both these, we expect Q2 FY27 revenue to be in the similar range as Q1 FY27 revenue."
Earlier, the company had said its financial performance for the June quarter would be lower than previously expected due to "a sudden drop in revenues in the last few weeks."
KPIT stated that it expects around a 1 per cent year-on-year (YoY) decline in USD reported revenue for Q1 FY27 compared with Q1 FY26, primarily due to sudden actions by some European original equipment manufacturers (OEMs) following their recent profit warnings and adverse business outlook.
"This impact was not seen coming earlier and has been realised only in the recent weeks. Such sudden action is a short-term phenomenon," the company said.
"In the long run, cost-cutting measures by clients would imply more outsourcing and offshoring with more automation led by our products and solutions, which is already indicated by the said clients and evidenced earlier during COVID & similar circumstances," KPIT added.
"The operating profitability (EBITDA Margin) and the Net Profit Margin for Q1 FY27 would decline sequentially, proportionately higher than the revenue decline, since there is no window for cost optimisation during this short period," it also said.
"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. We are confident in our ability to demonstrate sustainable, profitable growth during the second half of the fiscal with a sound sequential quarterly growth in Q4 FY27 to lay a solid growth foundation for FY28 and beyond," the company further stated.
Meanwhile, global brokerage JPMorgan downgraded KPIT Technologies to 'Underweight' from its earlier rating and cut the target price to Rs 550 from Rs 700, following the company's revised business outlook.
Shares of KPIT Technologies Ltd plunged to a fresh 52-week low on Wednesday after the automotive software company clarified on its revenue guidance for the first half of the ongoing financial year 2026-27 (FY27).
The stock tumbled 16.73 per cent to hit a one-year low of Rs 559.10. At this level, the counter has declined around 52 per cent on a year-to-date (YTD) basis.
In its clarification, KPIT said, "The expected impact as stated on Q1 FY27 revenues comprises of multiple client actions. We have also indicated the growth avenues that we foresee. Considering both these, we expect Q2 FY27 revenue to be in the similar range as Q1 FY27 revenue."
Earlier, the company had said its financial performance for the June quarter would be lower than previously expected due to "a sudden drop in revenues in the last few weeks."
KPIT stated that it expects around a 1 per cent year-on-year (YoY) decline in USD reported revenue for Q1 FY27 compared with Q1 FY26, primarily due to sudden actions by some European original equipment manufacturers (OEMs) following their recent profit warnings and adverse business outlook.
"This impact was not seen coming earlier and has been realised only in the recent weeks. Such sudden action is a short-term phenomenon," the company said.
"In the long run, cost-cutting measures by clients would imply more outsourcing and offshoring with more automation led by our products and solutions, which is already indicated by the said clients and evidenced earlier during COVID & similar circumstances," KPIT added.
"The operating profitability (EBITDA Margin) and the Net Profit Margin for Q1 FY27 would decline sequentially, proportionately higher than the revenue decline, since there is no window for cost optimisation during this short period," it also said.
"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. We are confident in our ability to demonstrate sustainable, profitable growth during the second half of the fiscal with a sound sequential quarterly growth in Q4 FY27 to lay a solid growth foundation for FY28 and beyond," the company further stated.
Meanwhile, global brokerage JPMorgan downgraded KPIT Technologies to 'Underweight' from its earlier rating and cut the target price to Rs 550 from Rs 700, following the company's revised business outlook.