Persistent Systems Shares Slip 4.7% After Q4FY26 Results
Persistent Systems shares slipped 4.7 per cent in trade on BSE, logging an intra-day low at ₹5,080.4 per share. At 9:41 AM,Persistent Systems’ share pricewas trading 4.47 per cent lower at ₹5,096.65 per share. In comparison, the BSE Sensex was down 0.61 per cent at 78,789.35. The stock was under pressure after the company released its Q4FY26 results.Persistent Systems Q4FY26 results highlights:Persistent Systems’ profit for the fourth quarter (January-March) of financial year 2025-26 (Q4FY26) grew 33.7 per cent to ₹529.2 crore year-on-year (Y-o-Y), compared to ₹395.7 crore recorded in Q4FY25. On a sequential basis, profit was up 20.4 per cent.Revenue for the quarter at ₹4,055.9 crore was up 25 per cent Y-o-Y. On a sequential basis, revenue was up 7.3 per cent.The company’s board of directors also recommended a final dividend of ₹18 per share.Check detailed results hereBrokerages’ view on Persistent SystemsNomura | Neutral | Target cut to ₹5,200 from ₹5,300The brokerage said that Persistent Systems missed its expectations on a few parameters. Persistent’s Q4FY26 revenue came in at $436 million, up 3.4 per cent quarter-on-quarter (Q-o-Q) in constant currency (CC), as compared to the expectation of 4 per cent. Earnings before interest and tax (Ebit) margin also missed the estimate by 40 basis points (bps) at 16.3 per cent.Nomura lowered its FY27-28F EPS by 2-4 per cent and retained its rating on rich valuation. Persistent is trading at 30.7x FY28F EPS. It prefers Coforge in the mid-cap India IT services space.Motilal Oswal Financial Services | Buy | Target raised to ₹6,200 from ₹5,650Motilal Oswal noted that Persistent Systems’ revenue growth (excl. software licenses) continued to soften, with 15 per cent Y-o-Y growth in Q4. This marks the fifth straight quarter of Y-o-Y deceleration in revenue growth. Further, the top 5 clients’ revenue declined 1.2 per cent Q-o-Q, with Y-o-Y growth moderating to 12 per cent, against 25 per cent earlier.Meanwhile, Q4 Ebit margin came in at 16.3 per cent, down 40 bps Q-o-Q. The brokerage built in a 16 per cent USD revenue compound annual growth rate (CAGR) over FY26-28E for Persistent Systems, reflecting moderation in core growth. Along with gradual margin expansion, this translates into 20-22 per cent EPS CAGR, still among the stronger growth profiles in mid-tier IT, though lower than earlier expectations.Also ReadStock Market LIVE Updates: Sensex drops 600 pts, Nifty near 24,400; VIX jumps 7%; Nifty IT falls 4%IPL 2026: LSG's playoff hopes hinge on Pooran amid prolonged batting slumpNifty IT index sinks 4%; HCLTech, Tech Mahindra, Coforge down up to 10%JP Power gains 6% after as Adani backs CoC, opposes Vedanta's revised bidCentre floats draft amendments to marquee Sugarcane Control Order, 1966The brokerage has cut the estimates by 4-5 per cent, factoring in a soft Q4 exit and continued reinvestments in artificial intelligence (AI) platforms and consulting capabilities.Emkay Global Financial Services | Add | Target: ₹5,200Analysts noted that Persistent Systems posted a tad softer-than-expected operating performance in Q4FY26. Its revenue grew 3.4 per cent Q-o-Q in CC terms, slightly below Emkay's estimate. Ebit margin declined 40 bps Q-o-Q to 16.3 per cent, missing the brokerage's estimate of 16.6 per cent. Deal wins, however, remained healthy at $600.8 million, with a book-to-bill ratio of 1.4x. New deal wins stood at $408.9 million.Emkay trimmed its FY27 and FY28 EPS estimates by 1.1 per cent and 0.3 per cent, respectively, based on the Q4 performance. The brokerage expects the stock to remain soft in the near term, given the Q4 miss and guarded commentary on margins.JM Financial Institutional Securities | Add | Target raised to ₹5,630 from ₹5,595Analysts see Persistent trading at 36x FY27 consensus EPS – pricing in the consistent growth & margin performance. According to them, investors will watch out for Coforge / Mphasis / Hexaware performance and will likely evaluate Persistent in a relative context going forward.Disclaimer: Views and outlook shared belong to the respective brokerages and analysts and are not endorsed by Business Standard. Readers are advised to exercise discretion.
&w=3840&q=75)
