KPIT Technologies shares plunged 17% to Rs 559.20 on Wednesday, bringing the company's market capitalisation down to Rs 15,421.96 crore, after the automotive engineering software firm flagged an unexpected revenue slowdown linked to its European clients, with analysts pointing to BMW and Volkswagen.
In a preliminary update on its Q1FY27 performance, KPIT stated that it now expects results to come in below earlier expectations, citing a sudden decline in revenues over the last few weeks. The company stated that it expects USD-reported revenue to decline by roughly 1% year-over-year in Q1FY27, a reversal attributed to the abrupt actions of some European original equipment manufacturers (OEMs) following their own profit warnings and weaker business outlooks. KPIT described the impact as unforeseen until recently, but characterized it as a short-term phenomenon that could, over time, push more outsourcing and automation work its way.
