KPIT Tech shares in focus as company expects Q1 revenue decline, sharp hit to margins. Crash ahead?

KPIT Tech has warned that its Q1FY27 revenue in U.S. dollar terms is expected to decline by around 1% year-on-year, attributed to sudden actions by some European OEMs following their profit warnings. EBITDA margin and net profit margin are likely to fall sequentially by a proportionately larger extent than the revenue decline, as there is limited scope for cost optimisation in the short period. The company said H1FY27 performance is likely to remain unsatisfactory but expressed confidence in a recovery, with sequential quarterly growth expected from Q4FY27 onwards.