{
  "id": 10825144,
  "title": "KPIT Tech plunges 24% in 3 months as auto demand weakens",
  "url": "https://urgent.news/2026/09/30/kpit-tech-plunges-24-in-3-months-as-auto-demand-weakens",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-30T00:47:09.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/stocks/news/new-orders-could-put-kpit-tech-on-the-road-to-recovery/articleshow/134576853.cms"
  },
  "original_language": "en",
  "account": "KPIT Technologies, an IT firm specializing in software solutions for the automotive sector, suffered a 24% decline in stock value over the past three months, in contrast to a 4% gain in the BSE Infotech index. The decline stems from a weakening demand from the global automotive industry. KPIT provides software for autonomous driving, advanced assisted driving, and electric powertrains. In the June quarter, the company reported a 29% decline in net profit on a sequential basis and a 32% decrease year-on-year. This decline was attributed to budget cuts in engineering and delayed project execution by major automobile companies in Europe. Despite expecting a recovery in the second half of the fiscal year, KPIT anticipates a weak performance in the September quarter. Analysts have lowered earnings per share estimates by over 25% for FY27. The European market, which accounts for around 50% of KPIT's revenue, has seen delayed project ramp-ups and geopolitical and tariff uncertainties. This has led to reduced spending by original equipment manufacturers (OEMs) on technology, negatively impacting the company's top line, which fell by 4.4% sequentially to $176.8 million. The operating margin declined by 360 basis points to 12.3%, driven by higher subcontracting costs and provisions for acquisitions. KPIT's management expects margins to improve in future quarters, thanks to revenue mix and productivity gains from AI tools. The company secured new orders with a total contract value of $257 million, a 6.6% increase year-on-year but lower than $349 million in the previous quarter. Although new deal wins in the June quarter provide hope for a gradual recovery, the September quarter's performance is expected to remain subdued.",
  "summary": "KPIT Technologies faces a substantial 24% decline in stock value, predominantly due to obstacles in the automotive sector. The company's net profit has notably decreased, attributed to project delays and financial cutbacks. Although management forecasts a rebound in the latter half of the year, the September quarter might reflect ongoing weaknesses.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}