Why KPIT Tech shares crashed 15% today: The BMW & Volkswagen connection explained

KPIT Tech shares crashed 15% after the company warned that Q1FY27 USD revenue will decline about 1% YoY due to a sudden pullback from European OEMs like BMW (its largest client at 12% of revenue) and Volkswagen following their own profit warnings. Margins will fall sequentially by more than revenue, as costs cannot be cut in time. JPMorgan downgraded the stock to Underweight and slashed its target price to Rs 550 from Rs 700, cutting EPS estimates by 9-22% for FY27-29, while JM Financial moved to REDUCE citing a muted near-term outlook.