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KPIT Technologies in Q1FY27 reported revenues of US$176.8 mn

ICICIdirect Research 30 Jul 2026 DISCLAIMER

News: KPIT Technologies in Q1FY27 reported revenues of US$176.8 mn (₹1,675 crore), down 4.4% QoQ/0.6% YoY in USD terms (down 3.6% QoQ/up 0.1% YoY CC). Vertical wise, Passenger Cars (78% of the mix) de-grew by 2.4% QoQ/5.1% YoY while Commercial Vehicles (19% of the mix) declined 12.2% QoQ but grew 29.1% YoY. The company has revised its geography reporting from Q1FY27, with US (30.5% of the mix) growing 10.5% QoQ/4% YoY, Europe (49.7% of the mix) growing 1.2% QoQ/11.4% YoY, while JKC – Japan, Korea & China (15.8% of the mix) declined 25% QoQ/29.7% YoY and SIMA – South-East Asia, India, Middle East & Africa (4% of the mix) declined 41.1% QoQ (partly due to a significant product sale in Q4FY26)/3.6% YoY. Reported EBITDA margin stood at 16.2%, down ~260 bps QoQ/~330 bps YoY, impacted by revenue reduction, while reported PAT stood at ₹116 crore, down 28.6% QoQ/32.3% YoY. The company won TCV of US$257 mn, down 26.4% QoQ/ up 6.6% YoY, with wins spanning connected and autonomous technologies, digital cockpit, after-sales, cybersecurity, powertrain and vehicle engineering across global passenger and commercial vehicle OEMs. The headcount for the quarter stood at 12,303 employees, a reduction of 217 employees QoQ.

View: We believe KPIT reported a weak Q1FY27, albeit better than what management expected in its business update made earlier, with revenue declining 0.6% YoY USD and EBITDA margin contracting sharply by ~260 bps QoQ to 16.2%, reflecting the impact of program ramp-downs/cancellations, stress at key European/Japanese OEMs and negative operating leverage. They were also hit by competition from Chinese automotive OEMS and US tariffs. However, the US geography remained resilient and deal wins were healthy at US$257 mn (+6.6% YoY), indicating that the weakness is more around timing and conversion of demand rather than a deterioration in the underlying opportunity. Management expects Q2 to remain subdued, with the full impact of the European program reduction likely to flow through during the quarter (Q1 impact of ~4%), while Commercial Vehicles should return to sequential growth. Growth is expected to gradually recover in H2, with a more meaningful improvement by Q4, supported by ramp-up of recent wins, wallet-share gains, new OEM relationships, expansion in off-highway/trucks and increasing traction in higher-margin products and solutions. Near-term margin recovery is likely to be gradual and largely dependent on revenue revival. Management reiterated confidence in its medium-term (FY29) 22–24% margin aspiration. Overall, we remain cautious in the near term given weak revenue and margin visibility, further Q2 headwinds and uncertainty around the timing of European OEM spending recovery, while healthy deal wins and diversification initiatives provide comfort on a gradual recovery from H2FY27 onwards.

Impact: Neutral

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