KPIT Tech Share Price Tumbles 15% as Company Flags Weak Q1 Performance

KPIT Technologiesshare price (NSE: KPITTECH) fell more than 15% on 1 July 2026 after the company released its preliminary business update for the first quarter of FY27. The sharp decline came as the company warned of weaker revenue and profitability for the quarter.

The stock opened at ₹604.40 on the NSE, compared with the previous closing price of ₹671.55, and later slipped to ₹570.80 during the trading session.

What Led to the Decline in KPIT Share Price?

KPIT Technologies expects its Q1 FY27 revenue to decline by around 1% year-on-year in US dollar terms.

The company said the weakness was caused by sudden actions taken by several European original equipment manufacturers (OEMs) after they issued profit warnings and highlighted a weaker business outlook. According to KPIT, the impact emerged only in the final weeks of the quarter and was not anticipated earlier.

The company believes the slowdown is temporary and expects outsourcing and offshoring opportunities to increase over time as clients focus on reducing costs with the help of automation and artificial intelligence.

Margins Expected to Remain Under Pressure

KPIT also warned that its EBITDA and net profit margins are likely to decline more sharply than revenue in the first quarter. The company said the sudden nature of the slowdown left little time to reduce costs.

It expects business conditions to remain challenging during the first half of FY27.

Company Remains Positive on Long-Term Growth

Despite the near-term challenges, KPIT said its business fundamentals remain strong.

The company highlighted healthy growth in its Products and Solutions business, the Trucks and Off-Highway segment, and markets such as the United States, South Korea and India. It also said new client wins are supporting growth in its passenger vehicle business.

KPIT added that demand remains strong in areas such as autonomous driving, connected vehicles, after-sales solutions, and end-to-end vehicle engineering. The company also pointed to a healthy order book and a growing deal pipeline.

To improve profitability, KPIT is implementing AI-led productivity improvements and cost-control measures while continuing to invest in AI-based technologies.

The company expects business to improve during the second half of FY27, with sequential growth by the fourth quarter, creating a stronger base for FY28.

Read more: Gold Falls Over 12% in June 2026, Set for Biggest Monthly Decline Since October 2008!

Conclusion

KPIT Technologies came under heavy selling pressure after warning of weaker revenue and margins in the first quarter of FY27. 

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