Rahul Jain sees challenging FY27 for KPIT despite strong deal pipeline

Analyst Rahul Jain of Dolat Capital has turned cautious on KPIT, indicating FY27 is unlikely to be a positive year despite around USD 349 million in deal wins. Two SDV programmes ended unexpectedly, weakening Q1 outlook and pushing recovery hopes to the second half, which has led to earnings estimate cuts of 7-8%. The FY27 EBITDA margin guidance of 20.5-21.25% faces pressure if growth continues to disappoint, though currency remains a supportive factor.