Image Source: Republic Bharat
On Tuesday, September 30, shares of KPIT Technologies Ltd. lost significant value. The stock price fell as much as 11% during the day and finally closed 10.4% lower at ₹1,084.5. This is the company’s worst single-day loss in 12 months. The last time the stock fell so much in one day was in October 2024, when the stock fell 14%.
Uninterrupted drop in recent times
The stock has now reduced in seven of the last eight sessions and has lost close to 20% in this period. In addition to this, KPIT is now also negative for September 2025, marking its fourth month of declines in a row. The company has only seen positive monthly returns in March and May this year.
As of now, KPIT stock has gone down 23% Year-to-Date in 2025. That makes it the worst year for the stock since its listing in 2019.
Spike in trading volumes
There was a notable and sudden spike in trading volumes of the stock on Tuesday. As of 3:01 PM, nearly 38 lakh shares have already changed hands, as compared to the 20-day average of only 7.5 lakh shares. According to market experts, this would indicate aggressive selling mainly by large investors and that may have triggered stop losses that further pushed down the stock.
The stock has fallen into the oversold area.
From a technical perspective, KPIT has now fallen into the oversold area. The stock’s Relative Strength Index (RSI) has moved to 29. An RSI below 30 indicates that the stock is oversold. Analysts say that this could potentially set up for a short-term bounce, but longer-term, the stock’s recovery will depend on the company’s earnings and margin outlook.
Who owns KPIT shares?
As of June 2025, domestic mutual funds owned about 14% of KPIT Tech. The biggest owners of KPIT Tech are:
- Mirae Asset Large and Midcap Fund – 2.74%
- Canara Robeco MF – 3.03%
- Motilal Oswal Nifty Midcap 100 ETF – 1.73%
- DSP MF – 1.15%
- HSBC Conservative Hybrid Fund – 1.02%
Some of the biggest Insurance companies around the world also own around 1.25% – 1.7%, such as LIC, ICICI Prudential Life Insurance, and HDFC Life Insurance. The Massachusetts Institute of Technology (MIT) also has an interest, owning 3.11%.
Overall financials
KPIT’s longer-term numbers appear robust. Revenue grew from ₹2,035 Crores in FY21 to ₹5,800 Crores in FY25. Net profit increased from ₹147 Crores in FY21 to nearly ₹837 Crores in FY25. Return on Equity (ROE) also stands at a healthy 28.8%.
However, the latest quarter (June 2025) showed pressure. Revenue was about ₹1,539 Crores. However, net profit fell to ₹177 Crores, down from ₹205 Crores a year ago. Also, earnings per share (EPS) declined from ₹7.53 to ₹6.32.
Perspective
According to analysts, the steep decline in the stock leads to profit-taking, weaker quarterly performance and overall selling pressure with midcap IT stocks. With the stock now oversold, some sort of short-term bounce is likely to take place. However, for a meaningful turnaround, investors will focus on the upcoming earnings reports, margin trajectory and new contract wins.
