Explained: Why Tata Elxsi shares crashed 7% after KPI Tech’s Q1 revenue, profit guidance warning

Shares of KPIT Technologies crashed 17% after the company warned of an around 1% YoY decline in Q1FY27 reported revenue in US dollar terms, citing sudden pullbacks by European OEMs BMW and Volkswagen following their recent profit warnings. Brokerages including JPMorgan and JM Financial downgraded the stock, with JPMorgan cutting its target price to Rs 550 from Rs 700 and slashing revenue estimates by 5-8% and EPS estimates by 9-22% for FY27-29. Peer Tata Elxsi also fell 7% as the automotive technology sector came under pressure.