Mumbai, July 1 -- The selling came after KPIT Technologies shares slumped about 17% after the company said it expects Q2 FY27 revenue to remain broadly in line with Q1 FY27, signalling that the demand slowdown could persist in the near term.

KPIT had earlier warned that its Q1 FY27 USD reported revenue is likely to decline about 1% year-on-year, primarily due to sudden actions by several European original equipment manufacturers (OEMs) following recent profit warnings and a weaker business outlook. The company also said its EBITDA and net profit margins would decline sequentially.

The cautious commentary raised concerns over spending by global automotive clients, prompting investors to pare exposure to peers such as Tata Elxsi, which al...