KPIT Technologies Shares Plunge Following Weak Q1 Outlook

KPIT Technologies shares plummeted 10-15% on July 1, 2026, hitting a lower circuit and marking a 52-week low of ₹570.75 on the BSE. This sharp decline followed a preliminary business update issued on June 30, which projected a 1% year-on-year revenue decline for the first quarter of fiscal year 2027. The company specifically cited sudden, adverse business adjustments by European Original Equipment Manufacturers (OEMs) as the primary cause for the shortfall.

Beyond revenue, KPIT Technologies warned of significant sequential contraction in both EBITDA and net profit margins. The company indicated that there was insufficient time to optimize costs in response to these sudden OEM profit warnings. Consequently, global brokerage firm JPMorgan downgraded the stock from 'Neutral' to 'Underweight.' This follows a period of significant value loss, with the stock down approximately 70% from its all-time peak and 50% over the last six months.

Despite the negative Q1 update, management maintained a positive long-term view, expressing confidence in achieving sustainable, profitable growth by the second half of FY27. KPIT noted strong traction within its Products and Solutions business and expansion into US, Korean, and Indian markets. While the first half of the fiscal year remains unsatisfactory, the company anticipates a strong recovery in Q4 FY27. This rebound aims to provide a robust operational foundation for the company's performance throughout FY28 and into the future.