Nomura has retained its neutral rating on Persistent Systems, revising the target price to ₹5,510 per share following a mixed set of first-quarter fiscal year 2026 results. While deal wins remained steady, reflecting Persistent’s robust sales effort, revenue growth was described as a “mixed bag,” with some softness linked to slowing client decision-making in a cautious macro environment. Margins held steady compared to prior periods, benefiting from reduced employee stock ownership plan (ESOP) charges, which helped offset some cost pressures.
Nomura also implemented a roughly 3% cut to its earnings per share estimates for fiscal years 2026 and 2027, flagging concerns around valuation levels that currently appear rich relative to growth visibility. The brokerage’s neutral stance reflects a wait-and-watch approach, balancing Persistent’s long-term potential against near-term uncertainties and premium pricing.
