Shares of KPIT Technologies fell more than 5% in early trade on Thursday after the automotive software company reported weaker June-quarter earnings, with profit and operating margins declining sequentially.
The stock was trading at Rs 605.2 apiece on NSE around 9.25 am, down from its previous close at Rs 638.75. Nifty 50, meanwhile, was trading in the green with a marginal upside of 0.1%.
Investors are tracking the company's margin trajectory and management's expectations of a stronger second half of FY27 despite near-term pressures from some of its largest clients.
Profit, Revenue And Margins Decline Sequentially
KPIT Technologies reported a consolidated net profit of Rs 117 crore for the June quarter, down 28.1% from Rs 163 crore in the March quarter.
Revenue also slipped 2.1% quarter-on-quarter to Rs 1,675 crore from Rs 1,711 crore in the preceding quarter.
The company's operating performance weakened during the quarter, with Ebitda declining to Rs 272 crore from Rs 322 crore in Q4FY26. As a result, the Ebitda margin contracted to 16.2% from 18.8% sequentially.
Commenting on the quarter, Kishor Patil, co-founder, chief executive officer and managing director of KPIT Technologies, said the company's first quarter performance was slightly ahead of the outlook shared at the end of the previous quarter.
He noted that while a few of the company's largest clients continue to face pressure, its strategy of diversifying growth across clients, geographies, mobility segments and offerings is beginning to demonstrate resilience.
Also Read: KPIT Technologies Q1 Results: Net Profit Drops 28% QoQ; EBITDA Margin Contracts
Stock down over 50%
The stock has been under pressure not just today but over a year now. During the past year, the stock declined over 52.7%, and in 2026 itself, it has tanked over 48.5%.
Having said that, the stock started recovering in the past week, gaining around 8.8%; however, today's decline is again taking a toll on the reversal.
Currently, the stock is trading at a price-to-earnings multiple of 27.87 times, with a market cap of Rs 16,407.5 crore as at the end of the previous trading session.
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