KPITTECH Q2 FY27 Results Analysis: PAT Slips 29%, FY27 Margin Band at Risk

Cofacto Research Published October 29, 2026 2 min read

Negative

KPITTECH's Q2 FY27 numbers came in soft, with revenue of Rs. 1,690.97 Cr (+6.50% YoY) and PAT growth of -28.64% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	October 28, 2026
Quarter	Q2 FY 2026-2027
Revenue (Q2)	Rs. 1,690.97 Cr (+6.50% YoY)
PAT (Q2)	Rs. 120.66 Cr (-28.64% YoY)
EBITDA margin	17.74% (-336 bps YoY)
EPS (Q2)	Rs. 4.43 (-28.78% YoY)
Market cap	Rs. 14,868.22 Cr
CMP	Rs. 542.35

Quarter Snapshot

Q2 FY27 met management's quarterly markers — flattish revenue (+0.95% QoQ) and +56 bps sequential margin recovery to 17.74% — but YoY profitability fell sharply (PAT −28.64%, EBITDA margin −336 bps) on Europe weakness, cost growth outpacing revenue, and a loss-making Qorix stake. H1 cash conversion of 0.50x and receivables stretch add earnings-quality pressure, while the FY27 margin band of 20.5%-21.2% requires an arithmetically difficult ~23.54% H2 margin.

Key Investment Insights

Key Positives

Revenue grew 6.50% YoY to Rs.1,690.97 Cr, meeting management's flattish-QoQ guidance (+0.95% QoQ)
Company-defined EBITDA margin improved 56 bps QoQ to 17.74% from 17.18%, meeting the successive-improvement guidance
Americas revenue grew 35.30% YoY with segment margin at 28.56%, up from 26.82% a year ago
RoW revenue grew 9.08% QoQ with segment margin recovering to 13.11% from 9.73% in Q1
Standalone PAT grew 9.34% YoY and 34.95% QoQ to Rs.130.48 Cr
Net worth rose 4.09% since March to Rs.3,694.02 Cr; total borrowings reduced to Rs.419.61 Cr from Rs.462.17 Cr

Risk Factors

PAT fell 28.64% YoY to Rs.120.66 Cr; normalized PAT declined 23.29% YoY even after stripping one-time items
Company-defined EBITDA margin compressed 336 bps YoY to 17.74%; H1 margin of 17.46% requires ~23.54% H2 margin to reach the FY27 floor of 20.5%
UK & Europe revenue fell 13.31% QoQ and 7.48% YoY with segment margin down ~820 bps YoY to 11.87%
H1 CFO/PAT was 0.50x with CFO down 69.84% YoY; FCF was near breakeven at Rs.5.64 Cr
Employee cost/revenue rose to 63.66% from 61.59% YoY despite a first-ever deferral of the annual wage hike
Qorix JV/associate loss widened to Rs.15.57 Cr from Rs.14.05 Cr in Q1; unallocable corporate expenditure grew 25.82% YoY