Shares of KPIT Technologies Ltd. continue to attract attention from multiple brokerages, with Prabhudas Lilladher recommending a 'Reduce' rating while JPMorgan maintains its 'Neutral' stance. According to Prabhudas Lilladher's latest research report dated October 29, 2026, the brokerage set a target price of ₹520 (revised from ₹470), citing concerns about growth consistency from new avenues and stress in key segments. The mixed analyst sentiment reflects the company's recent performance improvements against ongoing challenges in certain business areas.
KPIT Technologies' second-quarter FY27 performance exceeded JPMorgan's expectations on revenue and margins. As reported by CNBC TV18, revenue grew 0.5% quarter-on-quarter in constant currency terms, against expectations of flat growth. The growth came despite revenue headwinds from the company's two largest clients, which recorded a combined year-on-year decline of around 13%. JPMorgan highlighted an expansion in EBITDA margin to 17.7%, up 60 basis points sequentially and ahead of both consensus estimates and its own forecast. Prabhudas Lilladher noted that EBIT margin reached 12.7%, beating their estimate of 11.7%, with growth driven by strong traction in Trucks & Off-highway segment which grew 17.6% quarter-on-quarter and 27% year-on-year.
The company's performance was supported by strong growth in specific segments, with the product business growing 5% quarter-on-quarter and 25% year-on-year, offsetting continued weakness in passenger vehicles. According to Prabhudas Lilladher, deal wins were relatively weak with total contract value (TCV) of $213 million across connected, autonomous, powertrain, vehicle engineering and after-sales engagements. However, conversion into revenue remains gradual amid elongated customer decision-making and continued cost pressure on European OEMs. Management expects the two large accounts to bottom out over the next couple of quarters, while corresponding efforts to drive Off-highways and Trucks should support revenue growth.
The company faces challenges in its Qorix division, with losses increasing sequentially to ₹156 million from ₹140 million in Q1, as OEMs pushed next-generation programs from 2028 to 2029-30, delaying revenue from its core middleware product. According to Prabhudas Lilladher, management expects Qorix losses to reduce from Q3 while exploring adjacent opportunities and other products to bridge the delay. On the margin front, management reiterated that second half of FY27 should perform better than first half, with expectations to achieve 20%–21% EBITDA margin range by FY28. The company expects margins to improve gradually each quarter as revenue growth, business mix and AI-led productivity gains support operating leverage.
KPIT Technologies shares ended 3.87% higher at ₹552.50 on Wednesday, October 28, as reported by CNBC TV18. Despite the gain, the stock remains down more than 52% so far in 2026. The company's total contract value (TCV) stood at $213 million in the September quarter, down around 17% from $257 million in the June quarter. Management reported a "decent improvement" in the overall pipeline and "healthy growth" in the Products and Solutions segment. Investors will also track management commentary on second-half growth, margin expansion and the recovery in demand from automotive original equipment manufacturers (OEMs).
