
KPIT Technologies shares fell 2.08% to ₹577.50 as of 9:21 am on Friday, July 24, reflecting continued bearish sentiment in the market. The stock decline follows the release of disappointing Q1 FY27 results and ongoing investor concerns over low profitability and a significant 32% year-on-year decline in net profit to ₹117 crore during the quarter. The stock remains a constituent of the Nifty Midcap 150 index and continues to face headwinds from the slow pace of investment in automotive technologies and poor sector outlook.
KPIT Technologies has announced a final dividend for FY 2025-26 with record date set for Wednesday, August 12, 2026. The company also declared an interim dividend of ₹2.25 per share (22.5%) on January 29, 2026, with effective date of February 4, 2026. Prior to this, a final dividend of ₹5.25 per share (52.5%) was announced on May 6, 2026, with an effective date of August 12, 2026. The dividend announcements provide some value to shareholders despite the challenging quarterly performance.
KPIT Technologies reported consolidated revenue of ₹1,674.99 crore in Q1 FY27, representing a slight decrease from ₹1,711 crore in the preceding quarter. The company's net profit for the June 2026 quarter stood at ₹130.46 crore, down from ₹168.49 crore in March 2026. Earnings Per Share (EPS) also saw a decline to ₹4.30 in June 2026 from ₹5.99 in March 2026. The quarterly performance reflects the ongoing challenges in the automotive technology sector and the company's inability to maintain profitability momentum from the previous quarter.
Motilal Oswal has maintained its buy rating on KPIT Technologies with a revised target price of ₹730, as reported in the research report dated July 28, 2026. The brokerage has cut its EPS estimates by 23% for FY27 and 15% for FY28 to account for near-term challenges including OEM weakness, Qorix losses, and global supply chain volatility. The revised target price is based on 22x FY28E EPS, down from the earlier 25x multiple. Despite the recent stock decline, the analyst maintains confidence in the company's long-term prospects, though near-term headwinds continue to impact performance.
On an annual basis, KPIT Technologies demonstrated strong growth in revenue over the past five years, with revenue increasing from ₹2,432.39 crore in 2022 to ₹6,454.93 crore in 2026. However, net profit declined to ₹674.94 crore in 2026 from ₹836.80 crore in 2025, reflecting the challenges faced in the current quarter. EPS also decreased to ₹23.43 in 2026 from ₹30.93 in 2025, while Return on Equity (ROE) dropped to 17.99% in 2026 from 28.83% in 2025. The company's Debt to Equity ratio stood at 0.13 in March 2026, indicating a relatively conservative financial position despite operational challenges.