KPIT Technologies reported a 28% sequential decline in net profit to Rs 116.41 crore for the June quarter. KPIT’s revenue decreased by 2% to Rs 1,675 crore. In constant currency terms, revenue declined 3.6% on a quarter-on-quarter basis. In dollar terms, the quarter’s revenue was $ 176 million. KPIT’s EBIT margin decreased to 12.3% compared to 15.9% in the preceding quarter. EBITDA for the quarter reduced by 13% to Rs 287.77 crore.
The EBITDA margins in the first quarter were at 17.2%, compared to 20.6% in the March’26 quarter. The company said Q1FY27 EBITDA margins were impacted by reduction in revenue, but said margins will improve every quarter from hereon, aided by revenue mix, growth, and AI-led productivity gains. New deal wins during the quarter were worth $ 257 million.
The company has already warned of a drop in revenues and profits for the first quarter as customers face business pressures, announced cost cuts, issued profit warnings and announced restructuring plans.
Kishor Patil, co-founder, CEO and MD of KPIT, expected a recovery in the second half of FY27 and in the last quarter of FY27.
Client Spending Cuts
Their top two clients in Europe and Japan were under pressure and had announced cuts in their spending as they struggled with supply chain issues, which pushed costs up. They were also hit by competition from Chinese automotive OEMS and US tariffs. This impacted KPIT revenues. Patil said the impact on profit was disproportionately higher than the decline in revenues. However, Patil said this was just a pause at the client end, and there have been no cancellations. The situation at the customer end will stabilise in the second and third quarter as they figure out their priorities and reallocate spends. KPIT would focus on expanding the customer base across clients, geographies and mobility segments, reducing client concentration and broad-base growth, he said.
Sachin Tikekar, President and Joint MD, KPIT said they were expanding presence in high-growth client accounts, accelerating momentum in trucks and off-highway, building relationships with new passenger vehicle manufacturers, strengthening their offering in AI-defined vehicles, and embedding AI-led products and solutions. KPIT was adding new passenger car OEMs in Japan and Korea, new logos across the US, Europe, and Asia, exploring adjacencies in micro mobility such as two- and three-wheelers and light electric vehicles. They would also work on expanding wallet share from existing clients, Tikekar said.
Stock Market Reaction
The positive outlook and recovery expectation in the second half lifted the KPIT stock on Wednesday. It rose 10% during the day to reach Rs 662.25 and closed at Rs 638.60 with gains of 5.99% on the BSE.
Following the demise of Ravi Pandit, co-founder and chairman of KPIT, the company on Wednesday appointed Nirmala Pandit as an additional non-independent non-executive director, from June 29, 2026, for three years. As a promoter and significant shareholder, here involvment will strengthen continuity and support the company, KPIT said. Anant Talaulicar, an Independent non-executive director, has been appointed as Chairman of the Board for a period of one year.