KPIT Technologies: Uncertain environment vs optimistic commentary; remain UW

研报英文原文证据摘录

KPIT Technologies: Uncertain environment vs optimistic commentary; remain UW

J P M O R G A N Asia Pacific Equity Research

30 July 2026

KPIT Technologies Underweight

KPIE.NS, KPITTECH IN

Uncertain environment vs optimistic commentary; Price (29 Jul 26):Rs638.75

remain UW Price Target (Jun-27):Rs550.00

1Q27 print was mixed with a beat on revenues but a miss on margins. Revenues IT Services, EMS, Telecom, and

declined 3.6% CC QQ vs expectations of a 4% decline, however, Ebitda margins Internet Research

missed cons/JPMe by 190bps/40bps as it declined 350bps QQ to 17.2%. Deal wins Bhavik Mehta, CFA AC

remained solid at $257mn, up 7% YY. Surprisingly, the 1Q rev decline was led by (91-22) 6157-3871

Japan (Honda account) and not EU OEMs as highlighted during the profit warning bhavik.mehta@jpmchase.com

in end Jun with EU rev decline expected to be in 2Q which it expects to offset with J.P.Tower,MorganSantacruz(E),India PrivateMumbaiLimited,- 400098,J.P. MorganSEBI

growth in the US and APAC. It continues to expect flat rev in 2Q and stronger Registration: INH000001873, (91-22) 6157-3000.

growth in 4Q however did acknowledge that it is difficult to time the pipeline to Technology, IT Services, Telecoms &

deal conversion given the uncertain demand environment, especially in the EU. It Internet

expects margins to inch up every quarter as operating leverage plays out. We Ankur Rudra, CFA

remain wary of the challenges the EU Auto industry is facing as highlighted by (65) 6801-3237

peers TELX and LTTS. We increase revs by 1% due to the 1Q beat that along with ankur.rudra@jpmorgan.com

J.P. Morgan Securities Singapore Private Limited

taking FX to spot drives 2% EPS upgrades over FY28/29, however, FY27 EPS gets

cut due to FX losses and higher losses in JV. Remain UW.