KPIT outlook disappoints, analysts push growth recovery to FY28

KPIT's weak Q1 FY27 guidance, implying a 4.5 to 4.8 percent quarter-on-quarter revenue decline, has triggered sharp price reaction and prompted analysts to push growth recovery to FY28. Choice Institutional Equities has cut FY27 revenue estimates by around 6 percent and EBITDA margin estimates by nearly 150 basis points. The cautious spending environment from European OEMs facing EV profitability pressures and rising Chinese competition is expected to weigh on the broader ER&D sector, including Tata Elxsi, Tata Technologies and LTTS.