KPIT Technologies issued a preliminary business update for Q1 FY27, expecting reported revenues to decline...

KPIT Technologies issued a preliminary business update for Q1 FY27, expecting reported revenues to decline approximately 1% year-on-year in USD terms due to sudden actions by European OEMs following their profit warnings and adverse business outlook. The company stated that the impact surfaced only in recent weeks and was not anticipated earlier. Consequently, EBITDA and net profit margins are expected to see a sharper sequential decline. The stock fell around 17% to a low of Rs 559.20, wiping off over Rs 3,080 crore from market capitalization. Analyst downgrades followed: JPMorgan cut to 'Underweight' with target Rs 550 (from Rs 700), JM Financial double-downgraded to 'Reduce' with target Rs 620 (from Rs 860), and Equirus downgraded to 'Add' with target Rs 715. JM Financial noted that FY27 will likely be a soft year, while JPMorgan cut revenue estimates by 5-8% for FY27-29. The company maintains that H1 FY27 will be unsatisfactory but expects sequential growth by Q4 FY27. Sources: KPIT Tech exchange filing via ET, Livemint.