Shares of Persistent Systems Ltd. dipped to a one-month low on Wednesday, after the company took a hit to its bottom line in the December quarter.
Brokerages, however, remain constructive citing strong execution and deal momentum, with Investec and UBS both raising target prices, even as management signalled a sharper focus on growth over further margin gains.
Persistent Systems reported a mixed performance in the third quarter on a consolidated, sequential basis. Net profit declined 6.8% quarter-on-quarter to Rs 439 crore, compared with Rs 471 crore in the previous quarter, even as operating metrics improved. Revenue rose 5.5% QoQ to Rs 3,778 crore from Rs 3,581 crore, while EBIT increased 8.5% QoQ to Rs 632 crore from Rs 583 crore. Operating margins expanded to 16.7% from 16.3%, reflecting improved operating leverage. The company also announced an interim dividend of Rs 22 per share.
Investec has reiterated its ‘hold' call on Persistent Systems and raised its target price to Rs 6,665 from Rs 5,825, citing what it termed flawless execution during the quarter. The brokerage pointed to a 44 basis point sequential expansion in EBIT margin, achieved despite a 180 bps headwind from compensation hikes. Investec said the margin improvement highlights strong operational performance and creates sufficient room for the company to reinvest in growth initiatives.
Meanwhile, UBS maintained its ‘buy' rating on Persistent Systems and slightly raised its target price to Rs 7,490 from Rs 7,425, citing a robust Q3 FY26 performance. The brokerage noted that, after adjusting for the impact of the new labour code, earnings per share were 7–11% ahead of expectations, reflecting strong underlying execution.
Persistent Systems Share Price Today
The scrip fell as much as 4.64% to Rs 6,048.50 apiece, the lowest level since Dec. 11, 2025. It pared losses to trade 4.38% lower at Rs Rs 6,064.50 apiece, as of 9:45 a.m. This compares to a 0.12% decline in the NSE Nifty 50 Index.
It has risen 2.88% in the last 12 months. Total traded volume so far in the day stood at 2.43 times its 30-day average. The relative strength index was at 50.36.
Out of 42 analysts tracking the company, 25 maintain a 'buy' rating, seven recommend a 'hold,' and 10 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 7.8%.
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