By BullScreen Editorial Team 
KPIT Technologies reported weak Q1 results 2027, with net profit falling 32.28% year-on-year to ₹116.41 crore, as spending cuts by major European automotive customers weighed on the company’s earnings. The engineering research and development (ER&D) firm said the slowdown was mainly driven by cost-control measures adopted by passenger vehicle manufacturers across key global markets.
Revenue from operations increased 8.85% year-on-year to ₹1,674.99 crore, although it slipped 2.1% compared to the previous quarter. Sequentially, net profit declined 28.57%, while the EBIT margin narrowed to 12.3% from 15.9% in the March quarter, reflecting pressure on profitability. During the quarter, deal wins stood at $257 million, down from $349 million in the previous quarter.
The company said it continues to face headwinds in Germany, France, the UK, and Japan, where automotive manufacturers are implementing job cuts, restructuring, pay reductions, and tighter technology budgets. European automakers are also dealing with rising competition from Chinese manufacturers, US trade tariffs, and weaker profitability. According to JPMorgan, technology spending cuts by BMW and Volkswagen were among the key reasons for the weaker quarter, with BMW accounting for nearly 12% of KPIT’s revenue.
Despite the challenging environment, CEO and MD Kishor Patil said the Q1 results 2027 were slightly better than the company’s earlier outlook. He added that KPIT’s strategy of diversifying across clients, geographies, mobility segments, and technology offerings is helping improve resilience. The company is also seeing encouraging demand for AI-led products in AI-defined mobility, vehicle engineering, digital cockpit solutions, autonomous technologies, and aftersales services.
Joint MD Sachin Tikekar said KPIT remains focused on expanding high-growth client relationships, strengthening its position in AI-defined vehicles, and increasing its presence in trucks, off-highway vehicles, and new passenger vehicle manufacturers. The company expects these investments, along with growing adoption of AI solutions, to support stronger growth in the second half of FY27.