Persistent Systems shares slipped 5.68% to ₹5,287.00 on Thursday (9:16 am) after the company posted its Q1FY26 results, which were largely in line with expectations. The stock opened at ₹5,525 and touched an intraday low of ₹5,220.50.
The company reported a net profit of ₹425 crore, up 7.4% QoQ, while revenue rose 2.8% QoQ to ₹3,333.5 crore. EBIT came in at ₹517.7 crore, up 2.5%, with margins stable at 15.5%, marginally below the 15.6% reported in Q4FY25. Total Contract Value (TCV) of new deals grew by 2% QoQ.
Despite the steady performance, the stock came under pressure, likely on account of valuation concerns flagged by brokerages.
Brokerages divided
Bernstein retained an ‘Outperform’ rating with a target price of ₹6,300, noting that Q1 was in line with expectations. It highlighted robust growth in BFSI (up 9%) and Hi-Tech (up 4%) segments, though healthcare dipped 2%. The brokerage reiterated its positive long-term outlook, projecting revenues to reach $2 billion by FY27, but cautioned that the stock’s premium valuation could trigger near-term correction.
Nomura, on the other hand, maintained a ‘Neutral’ stance with a target price of ₹5,510, calling the quarter a mixed bag. It pointed to steady deal wins but also slowing client decision-making, while acknowledging that margins remained supported due to lower ESOP charges. The brokerage cut its FY26–27 estimates by 3% citing valuation concerns.
At the current price of ₹5,287, Persistent trades well below its recent high of ₹6,788.90, though still above its 52-week low of ₹4,148.95.
Disclaimer: This article is based on publicly available information and brokerage views. It does not constitute investment advice.
