Persistent Systems Ltd. shares fell during early trade on Wednesday after the company reported largely in-line performance for the March quarter, even as margins edged lower sequentially.
The company posted its 24th consecutive quarter of revenue growth, with consolidated revenue rising 7.4% quarter-on-quarter to Rs 4,056 crore, compared with Rs 3,778 crore in the December quarter. EBIT grew 4.2% sequentially to Rs 659 crore, while EBIT margin slipped 40 basis points to 16.3%. Net profit rose 20.4% quarter-on-quarter to Rs 529 crore.
Growth during the quarter was broad-based across verticals, with healthcare emerging as the strongest performer, posting an 11% sequential increase. Software and hi-tech as well as the BFSI segment recorded 6% quarter-on-quarter growth each. Revenue growth in constant currency terms stood at 3.4% in Q4FY26, down from 4.1% in the previous quarter. Total contract value (TCV) moderated to $600 million during the quarter, compared with $674.5 million in Q3FY26.
For the full year, Persistent Systems reported EBIT margins of 15.6% in FY26, improving from 14.7% in FY25 and 14.4% in FY24. The company achieved EBIT margin expansion of about 90 basis points in FY26, against its aspiration of 200–300 basis points by FY27. FY26 revenue growth stood at 17.4%, with the company closing the year at about $1.66 billion in revenue, short of its earlier target of reaching $2 billion by FY27.
Brokerage views on the stock remained mixed. Citi maintained a ‘Sell' rating with a target price of Rs 4,230, citing premium valuations and continued caution on the IT services sector amid competitive intensity and the evolving impact of artificial intelligence. In contrast, Nuvama retained a ‘Buy' rating and raised its target price to Rs 6,100 from Rs 6,000 earlier, noting industry-leading growth and expectations of recovery in the coming quarters supported by strong deal wins and capabilities.
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Persistent Systems Share Price Movement
Shares of Persistent Systems fell as much as 4.7% to Rs 5,108 on the NSE, compared to a 0.7% decline in the benchmark Nifty 50. The stock is up 3% in the last 12 months and down 19% year-to-date.
The total traded volume stood at 6.3 times the 30-day average. The relative strength index stood close to oversold level.
Of the 42 analysts tracking the stock, 24 have a 'buy' rating, 12 recommend a 'sell' and six suggest 'hold', according to Bloomberg data. The average of 12-month price targets indicate an upside potential of 11%.
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