KPIT Technologies Q1 FY27 results: Net profit slips 28% QoQ; firm expects margin improvement on AI, revenue growth

The company’s revenue from operations slipped 2% on a quarter-on-quarter (QoQ) basis to ₹1,675 crore during the quarter under review, compared to ₹1,711 crore in the March quarter of the 2025-26 fiscal year (Q4 FY26).

In constant currency (CC) terms, the revenue declined 3.6% on a QoQ basis. In dollar terms, the Q1 FY27 revenue stood at $176.8 million.

The Pune-headquartered software company, in an investors' presentation, highlighted decent growth in the US geography, along with progress in its after-sales and vehicle engineering and design practices. It also noted healthy traction in its products and solutions segment.

On the operational level, KPIT’s earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at ₹272 crore in Q1 FY27 as against ₹311 crore seen in the Q4 FY26, marking a drop of 13%.

The company’s EBITDA margin contracted sequentially to 16.21% as compared to 18.18% in Q4 FY26.

Outlook

KPIT Tech said that its Q1 FY27 EBITDA margins were impacted due to revenue reduction. It expects margins to improve successively hereafter every quarter, aided by revenue mix and growth and AI-led productivity gains.

The software company’ management further stated that robust cash conversion continued in Q1 FY27. The firm reported a net cash position of ₹900 crore, compared to ₹960 crore in the previous quarter.

“The Q1FY27 performance has been slightly ahead of the outlook we shared at the end of the quarter. While a few of our largest clients continue to face pressures, the strategy we have pursued to diversify our growth across clients, geographies, mobility segments and offerings is beginning to demonstrate its resilience,” said Kishor Patil, Co-founder, CEO and MD, KPIT.

The management also said that it closed engagements worth $257 million in Q1 FY27, reflecting healthy deal wins during the quarter. They added that its pipeline continues to be satisfactory, with healthy growth in the products and solutions pipeline, and also highlighted a small but strategic win with an Indian OEM.

What the company had expected

KPIT Technologies last month had said that the financial performance for Q1 FY27 (April to June period) will be lower than previously expected, due to a sudden drop in revenues in the last few weeks.

The company had said that there is an expected decline of nearly 1% in USD-reported revenues for Q1 FY27 compared to Q1 FY26 (YoY), primarily due to sudden actions by some European OEMs triggered by their recent profit warnings/adverse business outlook.

The tech firm earlier had highlighted that while its H1 FY27 performance would be unsatisfactory, the fundamentals of its business remain strong. The company added that, as communicated earlier, it is witnessing strong traction in the products and solutions business, the trucks and off-highway sub-vertical, and the US, Korean, and India markets.

“We believe our focused investments, differentiated capabilities and trusted client relationships position us well to return to stronger growth in H2FY27 and beyond. We have successfully navigated similar industry cycles before and remain confident in our strategy, execution and long-term direction,” Patil said.

Following the earnings, KPIT Technologies shares were trading at ₹651.15 on the National Stock Exchange, soaring 8.08%.