KPIT Technologies Q2 FY27 results: net profit down 28.6% to ₹120.66 crore, revenue up 6.5%

How did KPIT Technologies perform in Q2 FY27?

Consolidated Q2 FY27 revenue was ₹1,691 crore, an increase of ₹103.26 crore or 6.5% from ₹1,588 crore in Q2 FY26. It was ₹15.98 crore or 1.0% higher than ₹1,675 crore in Q1 FY27. The investor update reported year-on-year constant-currency revenue growth of 0.2% and sequential constant-currency growth of 0.5%.

EBITDA was ₹282.83 crore, down ₹37.83 crore or 11.8% from ₹320.66 crore a year earlier but up ₹11.34 crore or 4.2% from ₹271.49 crore in the previous quarter. The consolidated EBITDA margin was 16.7%, against 20.2% in Q2 FY26 and 16.2% in Q1 FY27. The company’s investor update reported a different 17.8% margin.

Net profit was ₹120.66 crore, down ₹48.43 crore or 28.6% from ₹169.09 crore in Q2 FY26, but up ₹4.25 crore or 3.7% from ₹116.41 crore in Q1 FY27. Basic EPS was ₹4.43, compared with ₹6.22 a year earlier and ₹4.3 in the previous quarter. On the standalone basis, revenue was ₹727.19 crore and net profit was ₹130.48 crore.

What changed in KPIT Technologies' costs and profit?

Total expenses were ₹1,515 crore, up ₹157.48 crore or 11.6% from ₹1,358 crore in Q2 FY26. Employee cost rose ₹98.65 crore or 10.1% to ₹1,077 crore, other expenses increased ₹47.32 crore or 17.5% to ₹318.19 crore, depreciation rose ₹11.20 crore or 15.0% to ₹85.91 crore, and finance costs increased ₹5.20 crore or 32.0% to ₹21.45 crore. Cost of materials fell ₹11.66 crore or 48.7% to ₹12.27 crore.

Other income fell ₹15.45 crore or 65.5% to ₹8.13 crore from ₹23.58 crore, while tax expense declined ₹14.10 crore or 22.9% to ₹47.38 crore. There was no exceptional item in either quarter. The investor update said the Q2 FY27 forex loss was ₹171M, compared with ₹163M in Q1, and the share of loss from Qorix was ₹156M, compared with ₹140M in Q1, due to revenue delay.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue was ₹3,365.96 crore, up ₹239.49 crore or 7.7% from ₹3,126.47 crore in H1 FY26. Total income rose ₹215.86 crore or 6.8% to ₹3,381.87 crore from ₹3,166.01 crore.

Profit before tax fell ₹136.26 crore or 27.6% to ₹357.95 crore from ₹494.21 crore. Net profit declined ₹103.92 crore or 30.5% to ₹237.07 crore from ₹340.99 crore, while EPS fell ₹3.81 or 30.4% to ₹8.73 from ₹12.54.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹7,057.97 crore, against ₹7,256.4 crore at 31 March 2026. Total equity was ₹3,694.02 crore, compared with ₹3,548.88 crore, while borrowings fell to ₹419.61 crore from ₹462.17 crore. Cash and cash equivalents were ₹916.89 crore, against ₹1,318.45 crore at the previous balance-sheet date.

H1 FY27 operating cash flow was ₹117.5 crore, compared with ₹389.56 crore in H1 FY26. Investing cash flow was negative ₹223.58 crore against negative ₹609.36 crore, financing cash flow was negative ₹293.14 crore against negative ₹82.29 crore, and capital expenditure was ₹111.86 crore against ₹76.14 crore. The investor update also reported a dividend payment of ₹1,431M and a Cymotive acquisition payment of ₹954M during the quarter.

How has KPIT Technologies done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters. Across the reported series, revenue reached its highest level at ₹1,711 crore in Q4 FY26 and its lowest at ₹1,477.96 crore in Q3 FY25. It was ₹1,690.97 crore in Q2 FY27, after ₹1,674.99 crore in Q1 FY27.

Net profit was highest at ₹244.72 crore in Q4 FY25 and lowest at ₹116.41 crore in Q1 FY27, before rising to ₹120.66 crore in Q2 FY27. The EBITDA margin peaked at 21.1% in Q3 FY25 and Q4 FY25, fell to 16.2% in Q1 FY27 and edged up to 16.7% in Q2 FY27.

Which businesses drove the quarter?

Americas revenue was ₹598.7 crore, up 35.3% from ₹442.49 crore in Q2 FY26. Segment EBIT was ₹170.97 crore, compared with ₹118.67 crore a year earlier, and the EBIT margin was 28.6%.

UK & Europe revenue was ₹766.36 crore, down 7.5% from ₹828.33 crore, while EBIT was ₹90.96 crore against ₹166.52 crore. Its EBIT margin was 11.9%. Rest of the World revenue was ₹860.33 crore, up 7.2% from ₹802.31 crore, and EBIT was ₹112.81 crore against ₹119.24 crore; the EBIT margin was 13.1%.

What else did the company announce?

On 28 October 2026, the board approved the un-audited consolidated and standalone results for the quarter and half year ended 30 September 2026. The statutory auditors issued an unqualified opinion on the reviewed results. The same filing did not announce a dividend, a fund raise or an appointment to the board of KPIT Technologies Limited.

The board approved the incorporation of a wholly owned subsidiary in Vietnam to support business growth, skilled talent, customer engagements, R&D capabilities and the company’s regional presence. It also approved the strike-off of Samit Solutions Limited, whose operations, employees and customer contracts had been integrated into KPIT UK, saying this would not affect business, financial reporting or operations.

Independent Director Anant Talaulicar was appointed to the board of KPIT Technologies Inc. with effect from 28 October 2026. The company also approved a letter of comfort for KPIT UK to increase its factoring facility limit from GBP 6 million to GBP 12 million, while stating that it would not provide a guarantee, indemnity or surety in connection with the issuance.

What did KPIT Technologies' management say?

Management maintained that H2 FY27 should outperform H1 FY27 and expects revenue growth in Q4 FY27, without giving a numerical target. It expects the two large OEM accounts that declined to bottom out over the next couple of quarters, followed by gradual recovery, and said EBITDA margin should improve each quarter. Management did not commit to an analyst’s 20–21% margin range and said clarity would come early next year.

Management said attrition was at mid-teens and should fall substantially, returning close to earlier levels next quarter. It expects early successes from Energytech and deep tech within 2–3 quarters, although a meaningful contribution would take longer. European vendor consolidation was expected to be meaningfully concluded by the end of Q1 FY28, with KPIT’s opportunity visible in H1 FY28.

On the call, management said off-highway and commercial revenue rose 27% year on year, passenger-car revenue fell 8%, and the two largest accounts declined by more than 13%. About 9% of revenue came from AI-first projects and fixed-price work reached roughly 70%. Management also said Qorix Gen 4 launches had shifted to 2029–30, extending the product drag.

How did KPIT Technologies shares react?

After the filing appeared, KPIT Technologies’ price rose 2.6% after 5 minutes, 2.5% after 15 minutes and 5.6% after 30 minutes. It closed 3.9% higher on the reaction day from its previous close, ahead of the Computers - Software & Consulting industry median of negative 1.0%, a difference of 4.9 percentage points.

By the next day’s close, the stock was up 2.3% from its pre-results close, compared with the industry median of negative 0.4%. By the fifth session, it was down 2.1% from that close, while the industry median was negative 0.2%. KPIT therefore lagged the industry by 1.9 percentage points over five sessions. Earlier reaction-day moves included 5.6% on 29 July 2026, negative 3.1% on 6 May 2026 and negative 5.4% on 29 January 2026.

How did other Computers - Software & Consulting companies do?

Among 33 Computers - Software & Consulting companies that had filed for the quarter, the median revenue growth was 13.6%. Of the other peers, 27 grew faster than KPIT Technologies and 6 grew more slowly, while KPIT’s consolidated revenue growth was 6.5%.

Of the 32 peers for which profit was compared, 21 reported higher profit. KPIT Technologies’ quarterly net profit declined 28.6% year on year, so the peer comparison covers revenue growth separately from the number of companies reporting profit growth.