KPIT Technologies (KPITTECH IN) – Q2FY27 Result Update – Unexpected beat, broader challenges continue – REDUCE
Published on 29 Oct 2026
Management expects sequential margin improvement & aspire to return to the 20–21% EBITDA margin range by FY28E. Accordingly, we revise our FY27E CC revenue growth estimate to +0.5% (from a 0.6% decline), while maintaining FY28E/FY29E estimates at 5.6%/8.3%. We also raise our EBIT margin estimates to 12.8%/14.7%/15.4% for FY27E/FY28E/FY29E, respectively, from 12.4%/14.5%/15.2%, passing on the Q2 beat. We assign a P/E multiple of 18x to Sept. 28E EPS to arrive at a TP of INR 520 (earlier INR 470). Key segment remains under stress, while growth consistency from new avenues is yet to be validated. Maintain our REDUCE rating.
