KPIT Technologies (KPITTECH) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue reached $176.8M (Rs. 16,749.94 million), with YoY growth of 8.9% but a 0.6% YoY decline in USD terms and sequential decline due to global automotive headwinds, especially in Europe and Japan.

• Profitability was impacted, with EBITDA margin at 17.2%, EBIT margin at 12.3%, and PAT at INR 1.17 billion, affected by ForEx losses and Qorix share of loss.

• $257M in new deal wins were secured, mainly in connected cars, after-sales transformation, and autonomous solutions, with a healthy pipeline and AI-led products driving traction.

• Board approved unaudited financial results with an unqualified auditor opinion and made key board and management appointments.

• Final dividend of Rs. 5.25 per share for FY 2025-26 was proposed.

Financial highlights

• Q1 FY27 revenue: $176.8M (Rs. 16,749.94 million), up YoY but down sequentially; CC revenue growth was 0.1% YoY, with a 3.6% QoQ decline.

• EBITDA margin: 17.2%; EBIT margin: 12.3%; PAT: INR 1.17 billion.

• Net cash at quarter end was ₹9.0B, with DSO at 51 days.

• Forex loss of ₹163M in Q1FY27; Qorix share of loss at ₹140M.

• Diluted EPS for Q1 FY27 was Rs. 4.28.

Outlook and guidance

• H2 is expected to be better than H1, with growth resuming in Q3 and significant growth in Q4, driven by client and segment expansion and AI-led productivity.

• Margins are expected to improve incrementally as revenue recovers; medium-term margin aspiration of 22%-24% by FY29 remains intact.

• Board and executive changes aim to ensure continuity and strategic direction.