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KPIT Technologies Q1 FY27 results (Apr–Jun 2026) and concall

Information Technology · Concall AI · Call held 29 Jul 2026

Company page: KPIT Technologies share price, financials & guidance record

Source transcript

Management summary

KPIT Technologies reported a challenging Q1 FY27 with revenue degrowth and profitability impacted by forex losses and Qorix. Despite headwinds in the automotive sector, particularly in Europe, the company secured USD 257 million in deal wins and is executing a broad-based growth strategy across new OEMs, off-highway, and product solutions. Management anticipates a return to growth in H2, led by Q4, with margins improving incrementally, and maintains its FY29 margin aspiration of 22-24%.

Highlights

  • Deal wins of USD 257 million in Q1 FY27, driven by connected cars, after-sales transformation, and autonomous technologies.

  • Broad-based growth strategy across existing and new OEMs, off-highway, and product/solution offerings.

  • Reaffirmed medium-term aspiration of 22-24% EBITDA margins by FY29, linked to product and solutions growth.

  • US geography demonstrated balanced growth in commercial vehicle and passenger car segments with good visibility for upcoming quarters.

  • Launched N-Dream in-vehicle gaming platform with Tata Motors, a first in India.

Concerns

  • Q1 FY27 revenue degrowth: 0.1% Constant Currency (CC) YoY growth, 0.6% USD YoY decline, and 3.6% CC QoQ decline.

  • Profitability impacted by forex loss and share of loss from Qorix, with Qorix losses expected to continue for 1-2 more quarters.

  • SDV program cancellations/ramp-downs in Europe and Japan significantly impacted H1 revenues, with full impact expected in Q2 FY27.

  • European market weakness led to a ~4% revenue impact in Q1, with further impact anticipated in Q2 FY27.

  • Degrowth in Q1 was primarily concentrated in the top 2 clients, with the full impact from one client expected next quarter.

Key financials

  1. Revenue Growth (CC YoY) 10% +0.1%YoY
  2. Revenue Growth (USD YoY) -60% -0.6%YoY
  3. Revenue Growth (CC QoQ) -3.6% -3.6%QoQ
  4. EBITDA Margin 17.2%
  5. EBIT Margin 12.3%
  6. PAT 1.17 Bncurrency not stated

What they filed

Q1 FY27: revenue up 8.8%, net profit down 32.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,471 1,478 1,528 1,539 1,588 +8%1,617 +9%1,711 +12%1,675 +9%
EBITDA297 306 323 295 298 +0%311 +2%317 −2%257 −13%
Net profit204 187 245 172 169 −17%133 −29%163 −33%116 −33%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Inflow this quarter

$257 Mn

Composition

  • Connected Cars (service line)
  • After Sales Transformation (service line)
  • Autonomous (service line)

Pipeline

deal pipeline tcv

Strong pipeline from existing clients, especially in Europe, with uncertainty on timing of realization.

Cancellations & deferrals

  • cancelled: Reduction/cancellation of SDV programs impacting H1 revenues.
  • ramp down: One SDV program from Europe is almost getting over.
  • cancelled: One SDV program in Japan was cancelled at the last minute.
Deal wins were strong despite challenging market conditions, but timing of revenue realization from the pipeline remains uncertain.

Source: Prepared remarks

Guidance & targets

Revenue

  • Revenue Growth (QoQ) Revenue · Q2 FY27 · High confidence flattish
    I don't have a clear answer to this right now. But I guess it will be flattish.

    — Kishor Patil

  • Revenue Growth (QoQ) Revenue · Q4 FY27 · High confidence meaningful growth
    by Q4, we will have a meaningful growth.

    — Kishor Patil

  • Revenue Growth (H2 vs H1) Revenue · H2 FY27 · High confidence better than H1
    H2 will be better than H1

    — Kishor Patil

Margin

  • EBITDA Margin Margin · FY29 · High confidence 22% to 24%
    we will be in a position to get where we have mentioned.

    — Kishor Patil

  • EBITDA Margin Margin · Q4 FY27 · Medium confidence return to normal levels
    when we get to the revenue growth, I think that is where we will be in position to bring the margins back.

    — Kishor Patil

What to watch in Q2 FY27

Commercial Vehicle Segment Growth

next quarter (Q2 FY27)
Current Weakness in Q1 FY27 due to one-time license deal absence.
Target Growth in Q2 FY27.

Why it matters

Management explicitly stated expected growth, indicating recovery in a key segment.

On the commercial vehicle, we will be on for growth next quarter. Actually, this quarter also, there was one specific thing what has happened was a quarter before we had one significant revenue in a particular place. So that's why this looks like this, but I think you will see a growth next quarter.

Find out whether KPITTECH delivers this. Inve re-checks your case every morning.

Risks & concerns

  • Automotive Industry Headwinds

    high

    Extreme competition from China, geopolitical situations, tariffs, and increased input costs are impacting the automotive sector, especially European players, leading to job cuts and profitability challenges.

    Management acknowledged

  • Revenue Degrowth and Profitability Impact

    high

    Q1 FY27 saw revenue degrowth (0.1% CC YoY, 0.6% USD YoY, 3.6% CC QoQ decline) and PAT was impacted by forex loss and share of loss from Qorix.

    Management acknowledged

  • SDV Program Cancellations/Ramp-downs

    medium

    One SDV program in Europe is ending, and one in Japan was cancelled, significantly impacting H1 revenues and causing uncertainty in timing of further revenue.

    Management acknowledged

  • European Market Weakness and Future Impact

    medium

    Europe experienced a ~4% revenue impact in Q1, with further impact expected in Q2 FY27. Conversion of strong pipeline to revenue is uncertain due to client re-baselining.

    Management acknowledged

  • Qorix Losses

    medium

    The share of loss from Qorix is expected to continue for at least another quarter or two, impacting overall profitability.

    Management acknowledged

  • Strategic Client Concentration

    medium

    The degrowth in Q1 was primarily concentrated in the top 2 clients, with the full impact from one client yet to be seen in the next quarter.

    Analyst acknowledged

Q&A highlights

6 direct
Commercial Vehicle Growth & Europe Weakness Direct
On the commercial vehicle, we will be on for growth next quarter. Actually, this quarter also, there was one specific thing what has happened was a quarter before we had one significant revenue in a particular place. So that's why this looks like this, but I think you will see a growth next quarter.

Clarifies the temporary nature of CV weakness and confirms expected growth next quarter, addressing a key concern.

Asked by Nitin Padmanabhan

FY29 Margin Aspiration Direct
I would say the medium-term outlook remains good for two, three reasons. I will not just make a statement. There are two, three things. As I said, we believe that our product revenues will grow and the solutions revenue will grow exponentially. I would say that we have had a reasonable success till date.

Reaffirms the long-term margin target despite short-term pressures, linking it to product and solutions growth.

Asked by Nitin Padmanabhan

Europe Revenue Impact & SDV Program Ramp-down Direct
there were certain revenues we were expecting which did not come there. And so some of this, you will see that it will have some impact next quarter, as you will see. So I think we saw a reasonable impact in Europe, which was about 4% for the quarter, about 4% or so. ... one program from Europe is almost getting over now. We'll go to start of production, but that's been planned. The one in Japan that was actually cancelled at the last minute.

Provides specific details on the European revenue decline and the status of the SDV program ramp-downs, confirming future impact.

Asked by Karan Uppal

China Strategy and Market Opportunity Direct
we will be very patient with China, but we will continue to grow and invest in China. And so we have engaged with two Chinese OEMs. And at least one of that we are about to get to a meaningful engagement in that case. The third is that we do believe that we have found a reasonable traction for our products and solutions in China.

Outlines KPIT's long-term strategic approach to the challenging Chinese market, indicating potential for future engagement.

Asked by Chandramouli

Fixed Price Contracts and AI Impact on Margins Direct
the first thing we felt that any change in the business model, the basic thing is move to the fixed price business model. Once we do that, then we have multiple options. Number one, of course, the usage of AI... The second thing is also the solutions which we bring in as a part of the fixed price delivery, which have better margins. And the third is the products.

Explains the levers for margin improvement in the new business model, including fixed-price contracts, AI, and higher-margin solutions/products.

Asked by Chandramouli

Deep Tech Investments (Hydrogen, Sodium-ion) Partial
continue to work on the hydrogen tech, but meaningful revenues will take some time... sodium-ion technologies... it takes about more than $100 million of investment and it takes significant time... not something which is immediate from the revenue perspective.

Clarifies that while these are strategic areas, they are long-term investments and not expected to contribute meaningful revenue in the near future.

Asked by Garvit Goyal

Wage Hikes Direct
this is the first time we have delayed. But we will do it in stages. And we will give it to the some of the younger grades soon. The senior people will get over the period.

Indicates a delayed and phased approach to wage hikes, suggesting a potential future impact on costs but managed incrementally.

Asked by Ankur Pant

Strategic Clients Revenue Decline Partial
our degrowth, I have not seen the numbers we will analyze and tell you, but it has been because of the top 2 clients. ... one of the clients, the degrowth is not factored completely actually. It will get next quarter, you will see the impact.

Reveals that the decline is concentrated in top clients and that the full impact from one client is yet to be seen, raising concerns about client concentration risk.

Asked by Ankur Pant

3 min read 7 chapters

Detailed narrative

Q1 FY27 Performance Overview

KPIT Technologies reported a challenging Q1 FY27 with Constant Currency revenue growth of 0.1% YoY, a USD revenue decline of 0.6% YoY, and a QoQ Constant Currency revenue decline of 3.6%. Profitability was also impacted, with EBITDA at 17.2%, EBIT at 12.3%, and PAT at INR 1.17 billion.

These figures reflect a 'more than disproportionate impact on profitability' due to revenue degrowth, exacerbated by forex losses and a share of loss from Qorix.

Automotive Industry Headwinds

The global automotive sector is facing significant challenges, including intense competition from China, geopolitical tensions, tariffs, and rising input costs. European players have been particularly affected, experiencing degrowth in the Chinese market, increased competition from Chinese OEMs in Europe, and restricted access to the U.S. market. These factors have led to widespread job cuts and profit warnings across the industry.

Strategic Growth Initiatives and Deal Wins

Despite the industry headwinds, KPIT secured USD 257 million in deal wins during Q1 FY27, primarily driven by connected cars, after-sales transformation, and autonomous technologies. The company is actively pursuing a broad-based growth strategy by increasing wallet share with existing OEMs, engaging with new passenger car OEMs in regions like Japan, Korea, and Europe, and expanding its presence in the off-highway and trucks segments, where it has opened seven new OEMs.

Product and Solution Focus for Margin Accretion

KPIT is leveraging its product and solution offerings, including Caresoft for cost reduction, N-Dream (in-vehicle gaming), I-Dart (Aftersales Transformation), Technica (validation), and Cymotive (cybersecurity), all powered by the Beacon AI platform. These integrated solutions are expected to drive growth and be margin accretive over time.

The company is also exploring opportunities in micro-mobility and Deep Tech, though hydrogen and sodium-ion technologies are long-term investments not expected to yield immediate revenue.

Outlook and Growth Trajectory

Management anticipates H2 FY27 to be better than H1, with a return to meaningful growth by Q4 FY27. Q2 FY27 revenues are expected to be flattish. The company maintains its medium-term aspiration of achieving 22-24% EBITDA margins by FY29, driven by product and solutions revenue growth and improved contract margins, which will be achieved incrementally as revenues recover.

SDV Program and Client Dynamics

Two significant Software-Defined Vehicle (SDV) programs, one in Europe and one in Japan, are concluding or have been cancelled, impacting H1 revenues. The full impact of these ramp-downs is expected to be reflected by Q2 FY27, with both accounts stabilizing by Q3 FY27.

The Q1 degrowth was primarily concentrated in the top two clients, with the full impact from one client expected in the next quarter, highlighting client concentration risk.

Cost Management and Wage Hikes

Profitability was affected by forex losses and a share of loss from Qorix, which is expected to continue for another one to two quarters. To manage costs, the company is implementing a phased approach to wage hikes, prioritizing younger grades, and delaying increments for senior personnel. The focus on fixed-price business models, AI usage, and higher-margin solutions is expected to enhance profitability over time.

Summary of a publicly available earnings call transcript; see how call summaries are prepared. Not investment advice.