Persistent Systems shares fell more than 3 percent on Friday, after the IT services company's fiscal second quarter earnings disappointed on profitability, despite strong revenue growth. The stock declined 3.4 percent to Rs 5,640 in afternoon trade, after falling as much as 6 percent intraday. It was among the top midcap losers and one of only two declining constituents of the Nifty IT index, which gained 3.1 percent.
Persistent Systems shares have declined 10.2 percent so far in 2026, compared with an 11.7 percent fall in the Nifty 50. The company had a market capitalisation of approximately Rs 89,000 crore.
The company's consolidated net profit fell 27 percent sequentially to Rs 351.5 crore in the September quarter, partly affected by a one-off expense of Rs 185.34 crore associated with the Nagarro deal. Revenue increased more than 8 percent sequentially to Rs 4,664 crore.
EBIT margin contracted by 100 basis points to 15 percent, missing estimates of 15.5 percent, due to wage hikes, lower utilisation and deal-related amortisation. The company expects margins to recover towards its aspirational range of 16-17 percent.
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